The Australian Business Registry Services (ABRS) will start the director ID Regime from 1 November 2021.
What is a director ID?
A director ID is a 15 digit unique identifier that will help prevent the use of false or fraudulent director identities. Directors will only ever have one director ID (much like a tax file number). They will keep it forever even if they:
- change companies
- stop being a director
- change their name
- move interstate or overseas.
Who needs a director ID?
You need a director ID if you’re an eligible officer (director or alternate director) of:
- a company, registered Australian body or registered foreign company under the Corporations Act 2001;
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
A director must apply for their director ID themselves because they need to verify their identity. No one can apply on their behalf.
What do you need to do from 1 November 2021?
Individuals who are currently a director or who will be acting as a director in the future must apply for a director ID in the timeframes outlined below:
Director on or before 30 November 2021: You must apply by 30 November 2022
Director between 1 November 2021 and 4 April 2022: You must apply within 28 days of appointment
Director from 5 April 2022: You must apply before appointment
How do individuals apply for a director ID?
Step one: Setup myGovID
Please note that myGovID is different from myGov. myGovID is an app you download to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
If you have myGovID, you do not need to do anything until 1 November when you can apply for your director ID.
If you do not have myGovID, you can find information on how to download the app at How to Setup myGovID.
Step two: Gather your documents
You will need to have some ATO information ready when you apply for your director ID:
- Your tax file number
- Your residential address as held by the ATO
- information from two documents to verify your identity, including:
- bank account details
- an ATO notice of assessment
- super account details
- dividend statement
- Centrelink payment summary
- PAYG payment summary
Step three: Complete your application
From November 2021 you can log in at the ABRS website and apply for your director ID.
For more information
Please do not hesitate to contact us if you require any further information about the director ID regime. You can also visit Australian Business Registry Service.
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent.
Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or at the gym. Book in to see Jeanette today.