As part of a strategy to reduce illegal phoenix activity and improve traceability of company directors over time, all directors will soon be required to hold a ‘Director Identification Number’. This is a single, unique 15-digit identifier. It will not change and will be attached to the individual forever.
Regardless of how big or small the company, the ID will be required for all eligible officers of the following entities:
- Any company, registered Australian body or registered foreign company under the Corporations Act 2001 (Corporations Act)
- Any Aboriginal and Torres Strait Islander corporation registered under the Corporation (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
- Note that an alternate director, acting in the capacity of director, will also be required to hold a director ID.
There are some grace periods for existing directors to apply for their directors ID, however YBM encourage clients to start this process sooner rather than later. Applications open this month.
Directors appointed after 1 November 2021 will only have 28 days to apply from the date of their appointment, and from April 2022 directors must already hold a directors ID before being appointed. Note, the deadlines vary slightly for CATSI Act Directors.
There are two steps in applying for your director ID:
1. Australian directors need to ensure they have a myGovID, which is different to a myGov account. It is an app that involves verifying your identity so that no one else can act on your behalf. A couple of tips:
- You will need a smart device and an email address (ideally not a shared email).
- Enter your name as it appears on the identity documents that you choose to use.
- Our recommendation is that you setup a ‘Standard myGovID’ rather than ‘Basic’ to ensure that you can access more services, including those for the directors ID. This involves providing details from at least two (2) of the following identity documents:
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- Driver’s licence
- Passport (not more than three years expired)
- Birth certificate
- Visa
- Citizenship certificate
- ImmiCard
- Medicare Card
- The app can be easily downloaded onto your phone or tablet from the app store/google play. The myGovID webpage on the government website may help you walk through the process.
- YBM are here to help! Please contact us if you would like to make an appointment for someone to assist you with this.
2. Login to the Australian Business Registry Services website to register for your director ID. You will need:
- Tax File Number
- Residential address (as recorded by the ATO)
- Details from two (2) documents that the ATO can check, such as:
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- Bank account details
- ATO Notice of Assessment
- Superannuation account details
- Dividend statements
- PAYG or Centrelink payment summary.
Please note that foreign directors must also apply for a director ID and this will be done via a paper form, available from the Australian Business Registry Services website from November 2021.
We understand that new regulations and applications can be challenging to navigate, so please don’t hesitate to contact our office if you need assistance.