Earlier this year, the government released a data standard for Director Identification Numbers, which follows on from the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020.
This initiative requires all new and existing directors of a company, registered Australian body, registered foreign company, or Aboriginal and Torres Strait Islander corporation to apply for and obtain a director identification number (director ID). Directors will hold their director ID permanently, even if they cease to be a director. This initiative aims to promote good corporate conduct and prevent illegal phoenixing, fraudulent corporate activity, and business misconduct.
The Treasury has now revealed the deadlines by which new and existing directors will need to apply for a director ID to avoid civil and criminal penalties.
Deadline for Existing Directors
Existing directors will be able to apply for a director ID from 1 November 2021 and must do so by 30 November 2022.
Existing directors of Indigenous corporations, which are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act), must apply for a director ID by 30 November 2023.
Deadline for New Directors
For new directors appointed between 1 November 2021 and 4 April 2022, director IDs must be applied for within 28 days of appointment.
For new directors appointed from 5 April 2022 onwards, director IDs must be applied for before the appointment.
How to Apply
Director IDs can be applied for through the new Australian Business Registry Services website.
To apply for a director ID, you will be required to set up a myGovID, gather the necessary documentation to verify your identity, and complete your application. Click here for more information on how to apply for your director ID.
Please note that your MGD advisory team cannot apply for a director ID on your behalf; however, we can guide you through the process and assist with any questions.
Please click here for more information about the director ID, deadlines for applications, how to apply for a director ID, and how to manage your director ID.
If you have any questions, please get in touch with your MGD adviser or contact our office.
Disclaimer: Any advice included in this article is general and has been prepared without taking into account your objectives, financial situation or needs. As such, you should consider its appropriateness having regard to these factors before acting on it. Any tax information in this article refers to current laws, is not based on your unique circumstances and should not be relied on as tax advice.