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Mandatory Director Identification Numbers (Director ID): What you need to know

As of 1 November 2021, company directors and alternate directors are now required to apply for a director identification number (Director ID) with the ABRS (Australian Business Registry Services). This is a requirement of all directors: both Australians and foreigners. This quick guide aims to outline all you need to know and do to meet the requirements.

As of 1 November 2021, company directors and alternate directors are now required to apply for a director identification number (Director ID) with the ABRS (Australian Business Registry Services). This is a requirement of all directors: both Australians and foreigners. This quick guide aims to outline all you need to know and do to meet the requirements.

In June 2020, the Australian Government introduced the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth). Part of the measures in this legislation introduced a new regime to Part 9.1A of the Corporations Act 2001 (Cth), which requires all company directors, or anyone who intends to become a director, to obtain a Director Identification Number (Director ID). The new laws came into effect on 1 November, 2021 meaning all Directors of Australian companies will now need to verify their identity as part of a new Director ID requirement. 

What is a Director ID?

A Director Identification Number is a 15-digit unique identifier, which will help prevent the use of false or fraudulent director identities. The Director ID is given to a director, or someone who intends to become a director, who has verified their identity with the Australian Business Registry Services. This will be used to trace relationships to companies over time.

A director will only need to apply for the identifier once, and will keep it forever regardless of whether they become a director of another company, cease to be a director, change their name or move interstate/overseas.

Who needs to register for a Director ID?

Every director of a company or other entities listed with ASIC is required to register for a Director ID. This includes foreign directors of Australian companies or other Australian registered bodies who do not reside in Australia. Directors must register for their Director ID personally—you cannot ask any other person to register on your behalf.

You need a Director ID if you are a director of a:

  • company
  • Aboriginal and Torres Strait Islander corporation
  • corporate trustee, for example, of a self-managed super fund
  • charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
  • registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated
  • foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).

You do not need a director ID 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 or the CATSI Act
  • a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia
  • 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.

How to apply for a Director ID?

In order to assist you with your application, we have prepared the following procedures. Please click on the appropriate link depending on your resident status: Australian resident or non-resident.

Procedure for Residents of Australia       

Procedure for Non-Residents of Australia

N.B. Only the directors themselves can apply for a director ID. 

When do you need to apply?

The date you will need to apply for a DIN will vary depending on when you became a director.

Date you become a director Date you 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

 

What will you do with your Director ID?

You will need to provide your Director ID to the corporation’s record-holder, which can be the company secretary, another director or an authorised agent of the company. If DFK Laurence Varnay is the registered agent for any companies of which you are a director, please provide your Director ID to us so we can update our records.

If appointed as a director of other companies in the future, you will need to provide your Director ID number to whomever is responsible for maintaining the records of those companies as well.

What happens if you fail to comply?

Failing to hold a Director ID may result in an infringement notice or possible civil and/or criminal prosecution.

Additional compliance breaches include if a director:

  • Fails to comply with a direction from the Registrar
  • Applies for multiple Director ID’s
  • Provides a false ID
  • Misrepresents their ID
  • Provides false or misleading information.

For more information please visit the Australian Business Registry Services

Should you have any questions, please do not hesitate to contact us on office@dfklv.com.au or 02 9264 5400. Please feel free to share this information with your colleagues and friends.

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