Insights
Directors ID number application now online
Earlier this year, the federal government announced that the director identification number (DIN) scheme was coming soon. The 15-digit ID number will be attached to the director permanently, even if they stop being a director, change their name or the company they are a director of, move interstate or overseas.
The scheme is designed to help prevent illegal phoenixing (by ensuring directors can be traced across companies) and the use of false or fictitious identities.
The scheme’s requirements and deadlines have recently been announced and are outlined below.
Who needs a director ID?
You need a director ID if you’re a director of:
- a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
You also need to apply for an ID if you are an eligible officer. A person who is appointed as:
- a director
- an alternate director who is acting in that capacity.
Who does not need a director ID?
You don’t need a director ID if:
- you’re running a business as a sole trader or partnership,
- your job title is ‘director’ but you haven’t been appointed as a director under the Corporations Act or Corporations (Aboriginal and Torres Strait Islander) Act (CATSI), or
- you’re a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia.
When to apply
Below are the deadlines provided by ABRS that sets out the timeframes for applying for a director ID:
Corporation Act directors
| Date you became a director | Date you must apply |
| Existing directors on or before 31 October 2021 | By 30 November 2022 |
| Between 1 November 2021 and 4 April 2022 | Within 28 days of appointment |
| New directors on or after 5 April 2022 | Before appointment |
CATSI directors
| Date you became a director | Date you must apply |
| Existing directors on or before 31 October 2021 | By 30 November 2023 |
| New directors on or after 1 November 2022 | Before appointment |
How to apply
Although we would love to take care of applying for a Director’s ID for clients, unfortunately, we are unable to do so in this instance. As the identity requirements are significant, directors must apply for their own ID number. Here’s how:
1. Set up myGovID
The fastest way to receive your director ID is to apply online. If you haven’t already, you’ll need to download the MyGovID app to your smart device and follow the prompts. (Note that the app is different from your MyGov account).
Foreign Directors that do not hold an Australian TFN will most likely need to apply via the paper form.
2. Gather your documents
Before applying for your director ID, you’ll need to collect some information that matches the information about you, held by the ATO, including:
- your tax file number
- your residential address
- two documents that verify your identity, such as:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
- a PAYG payment summary.
3. Complete your application
Once you have a myGovID and the information to verify your identity, you can log into myGovID and apply for your director ID.
The application should take you less than five minutes.
If you can’t get a myGovID, you can apply by phone on 13 62 50 (weekdays 8 AM- 6 PM AEST) or with a paper form.
Penalties for non-compliance
Current directors need to apply for a DIN by 30 November, 2022. Failing to apply for a director ID within this timeframe may result to an infringement notice or a criminal and/or civil penalties of up to $1.1 million (5,000 penalty units).
Directors of Indigenous corporations that are governed by a CATSI organisation can face penalties of up to $200,000.
Penalties also apply for providing false identity information to the registrar or intentionally applying for multiple director IDs.
Get expert advice
To find out more about director IDs, including whether it applies to you or how the application works, you may book an appointment with a Modoras Professional. We are always here to help.
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