Company Directors Identification Number

9 November 2021

Australian company directors have one year to apply for their unique director identification number before fines of over $1.1 million are issued for non-compliance.

Existing company directors will now be required to apply for a director identification number (director ID) by 30 November 2022. (Aboriginal and Torres Strait Islander entity directors will be required to apply for the unique identifier by 30 November 2023.)

Applications for a director ID are free and open November 2021 on the newly established Australian Business Registry Services (ABRS), a single platform administered by the Commissioner of Taxation that brings together ASIC’s 31 business registers and the Australian Business Register.

While existing directors will have a year to apply for their director ID, new directors appointed between 1 November 2021 and 4 April 2022 will have just 28 days after appointment to apply for their director ID. New directors who are appointed from 5 April 2022 will be required to apply for their director ID before appointment.

Under the law, directors who fail to apply for a director ID within the stipulated time frame can face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million. Directors of a CATSI organisation can face penalties of up to $200,000.

Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple director IDs.

The director ID will be attached to a director permanently, even if they cease to be a director, change their name, or move interstate or overseas.

The government expects the director ID regime to help prevent illegal phoenixing by ensuring directors can be traced across companies, while also preventing the use of false or fictitious identities. 

You can find out more about the director ID regime on the new ABRS website. 

How to apply for a DIN

Directors will need to apply online at https://www.abrs.gov.au/director-identification-number/apply-director-identification-number, from November 2021 and will require a MyGovID (an app you download on your smart device, different from MyGov) to complete the application process.

For information on how to setup a MyGovID please go to https://www.mygovid.gov.au/set-up

When will a director need to apply for a DIN?

Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.

For now there will be no change to how a company is registered, therefore there is currently no requirement for you to include the directors ID number on your company application or company change of details form (484, etc).

For information on the MBR Program click the link below.

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Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. .