Director Identification Number required from November 2021
Director Identification Number required from November 2021
As part of the 2020 Budget Digital Business Plan, the Government announced the full implementation of the Modernising Business Registers ( MBR ) program. The MBR program will establish the new Australian Business Registry Services ( ABRS ) and streamline how you register, view and maintain your business information with the Government.
The ABRS will:
- progressively roll out between 2021 and 2024;
- introduce the Director identification number ( Director ID ) initiative; and
- bring together more than 30 ASIC registers and the Australian Business Register ( ABR ) into a single platform.
From November 2021, Directors will need to verify their identity as part of a new Director ID requirement. A Director ID is a unique identifier that a Director will only need to apply for once, and the Director will keep their same ID number regardless of whether they
- change companies;
- stop being a Director;
- change their name; or
- move interstate or overseas.
The overall objective of this program is to help prevent the use of false or fraudulent director identities and, in particular, to directly tackle potential phoenix activities.
Who needs a Director ID?You will need a Director ID number if you are an eligible officer of:
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How do you apply for a Director ID?Directors must apply for their Director ID themselves because they will need to verify their identity. No one can apply on their behalf. Step 1: Set up a myGovID You will need a 'standard' or 'strong' identity strength myGovID to apply for your Director ID online. If you:
Step 2: Gather your documents You will need some information the Australian Taxation Office ( ATO ) can confirm against your details when you apply for your Director ID, such as:
Examples of the documents you can use to verify your identity include:
Step 3: Complete your application Once you have a 'standard' or 'strong' identity strength myGovID, and your documents, from November 2021 you can go to the ABRS website ( click here) and apply for your Director ID. The application process should take less than 5 minutes. If you can not get a myGovID, you can also apply for your Director ID using some alternative methods:
For full details of the application process, you can visit the ABRS website here. |
When will you use your Director ID?When you receive your Director ID, you need to pass it on to your company record-holder, which may include your company secretary, another director, contact person or an authorised agent of the company. If you are appointed as a Director of any other companies, in the future, you also need to give your Director ID to the people responsible for maintaining the records of those companies. |
Are there penalties for non-compliance?While the ABRS is responsible for the implementation and administration of Director ID program, ASIC will be responsible for the enforcement of any associated offences. Under the law, Directors who fail to apply for a Director ID within the stipulated time frames (see below) may face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million. When you must apply for your Director ID depends on the date you become a Director, as follows:
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Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.
