A Director ID, known as the Director Identification Number is being introduced for company directors.
What is it and why do you need it?
A director ID is a 15-digit number that is given to all directors (and people who intend to be directors) that have verified their status with the Australian Business Registry Services (ABRS). Once given to you, this number will stay with you forever, regardless of whether you change companies, stop being a director, change your name, or move away.
All directors must verify their identity with the ABRS and receive their director ID. The reasons director ID was introduced include:
- Prevent false or fraudulent director identities being used
- To make it easier for regulators and external bodies to trace directors’ relationships with different companies’ overtime
- Recognise and eliminate directors being caught up in unlawful activity, such as illegal phoenix activities.
Who needs to apply and when?
You will need to obtain a director ID if you are an eligible officer of:
- A company, registered body, or a foreign company under the Corporations Act
- An Aboriginal or Torres Strait Islander corporation under the CATSI Act.
You are an eligible officer if:
- You are a director
- You are an alternate director who is acting in the capacity of the director.
If you become a director under the Corporations Act you must apply by the following dates:
- If you became a director before the 31/10/2021, you must apply by the 30/11/2022
- If you become a director between the 1/9/2021 and the 4/4/2022, you must apply within 28 days of being appointed
- If you become a director after the 5/4/2022 you must apply before appointment.
If you become a director under the CATSI Act you must apply by the following dates:
- If you became a director on or before 31/10/2022, you must apply by 30 November 2023
- If You become a director from the 1/9/2022, you must apply before appointment.
How do you apply for the director ID?
- The first step is to set up a MyGovID
- The next step is to gather all of the personal information that may be needed to identify you. This may include Tax File Number, bank account details, Super Fund details, etc.
- Once both steps are complete, you may begin the application process. This process is very quick.
What to do once you receive your director ID?
When you receive the ID number you must pass it on to your company. When you join companies in the future, you must also provide the number to them.
Through your myGovID you can update any personal details, view your ID number and status, and view your actions and past activities.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au