Company directors, new and existing, must apply now for a director identification number, or Director ID.
The requirement was established to deter illegal phoenixing, fraud and corporate misconduct, as well as to simplify the tracking of directors and their corporate history. Directors who fail to apply for a Director ID on time may face civil or criminal penalties (the maximum penalty is currently at $1,100,000).
Directors who receive their Director ID are required to pass it on to the record-holder in their company.
What is a Director ID?
A Director ID is a unique 15-digit identifier, issued by the Australian Business Registry Services (ABRS). It remains with the director for life.
An application for a Director ID requires a director to verify their identity. A director need only apply for a Director ID once, even when they hold multiple director positions. The Director ID requirement does not apply to other appointments such as company secretary.
When you need to apply for your Director ID is determined by when you were first appointed as a director. All existing directors have until 30 November 2022 to apply.
Directors intending to be appointed from now must secure their Director ID before appointment.
If you can’t apply by the date you need to, you can complete an application for an extension of time to apply for a Director ID form.
Tips for Applying for Director ID
A director must apply for their Director ID personally; a lawyer, or agent, cannot apply for a Director ID on a director’s behalf.
For detailed information, and step-by-step guidance to complete your Director ID application, visit the ABRS website. The easiest way to apply is online. Nonetheless, procedures such as these can be frustrating for us all, in which case, you can also apply by telephone with the ABRS (call 13 62 50 or +61 2 6216 3440 from overseas). Providing your individual Australian tax file number by phone is optional but it speeds up the process. Applicants can also request by phone to lodge a paper form.
There are different ways of verifying your identity.
For the online process, there are two steps. Applicants will first need to either use their myGovID credential, or create a myGovID in a similar process to a ‘100 point’ check required to open a bank account. A myGovID is different from a myGov account which many people will have already set up. To create a myGovID, you’ll need at least two documents such as a driver’s licence, passport, birth certificate, visa, citizenship certificate, ImmiCard or Medicare card.
Then, the next step for applicants by phone or online is to answer two questions about their ATO record. These questions will be based on information about either your Notice of Assessment, PAYG payment summary, dividend statement, Centrelink payment summary, bank account details held by the ATO, or superannuation account details.
Applicants lodging a paper form will need only provide copies of their identity documents, but these must be certified by an authorised certifier.
Recapping, existing directors need to create their Director ID by 30 November.
~ with Philippa Thorne, Graduate at Law
