New ABRS requirements for Directors - Director Identification Number
As of November 2021, all company Directors will need to apply for a director identification number (Director ID), as part of a new requirement implemented by the Australian Business Registry Services (ABRS).
These requirements impact all company Directors including those of private companies and corporate trustees of family trusts, not just Directors of large or listed entities.
Do I need to apply for a Director ID?
If you are a director of an Australian corporation you will need a director ID. A ‘director’ includes an alternate director who is acting in that capacity.
Under what circumstances is a Director ID not required?
A Director ID is not required if you are:
a company secretary but not a director
acting as an external administrator of a company
running a business as a sole trader or partnership
referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act
a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia, and
an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body.
When do Corporations Act directors need to apply for a Director ID?
The director ID application will be available from November 2021, with transitional arrangements for existing and new directors. When you need to apply for a director ID will depend on when you become a director, as set out below.
|
Date person becomes a director |
Must apply |
|---|---|
|
On or before 31 October 2021 |
By 30 November 2022 |
|
Between 1 November 2021 and 4 April 2022 |
Within 28 days of appointment |
|
From 5 April 2022 |
Before appointment |
How to apply for a director ID
In order to apply for a Director ID, you can follow the following steps:
Step 1: Set up myGovID
You will require either a standard or strong identity strength myGovID. If you do not have a myGovID account, you can find information on How to set up myGovID.
If you have either type of myGovID, you do not need to do anything until November 2021 when you apply for the Director ID.
Note that a myGovID is different to standard myGov account which links to online services such as the ATO or Centrelink.
Step 2: Gather your documents
You will need the following information:
your tax file number (TFN)
your residential address as held by the ATO, and
information from two documents to verify your identity such as bank account details, an ATO notice of assessment, super account details, a dividend statement, a Centrelink payment summary or a PAYG payment summary.
Step 3: Complete your application
After completing steps 1 and 2, you can apply for your director ID through the ABRS Website from November 2021.
Please note that this process must be done by the director as the director will be required to verify their identity.
If you cannot get a myGovID
You can apply by phone or lodge a paper application. You can find more information on these options on Verify Your Identity.
Once you have obtained a director ID, you will be required to register this against any existing director appointments. It will be retained permanently by you, similar to the way a tax file number is applied to each individual.
Let’s Talk
Should you have any queries in relation to the requirements or application process for a Director ID, please contact us on + 61 3 9527 5041.