It is now a requirement for all company directors to have a Director ID Number. With deadlines fast approaching, we sat down with Liz Reams, one of our Client Services Managers, to find out more.
What is a Director ID Number and who needs one?
A Director ID number is a 15-digit number given to all Directors of Australian companies (or someone who intends to become a Director) after their Identity is verified with the Australian Business Registry Services (ABRS). Like a Tax File Number, Directors will only ever have one Director ID which they will keep forever even if they change companies, stop being a director, have a change of name, or move interstate or overseas.
The goal of the Director ID number is to streamline and clean up all Business Registers. Director ID numbers will make it easier to trace Director’s company relationships and identify and eliminate involvement in illegal activities.
How can Directors get a Director ID Number?
Directors can apply for a Director ID number in 3 ways: online using the MyGovID app, by phone and by paper form. Directors are responsible for applying for their Director ID number themselves as it involves identity checks, meaning that your Tax or BAS agent is unable to apply on your behalf.
To apply online, you will need to set up the MyGovID application and have standard to strong identity verified. Once you have your MyGovID app set up, you can apply online on the ABRS website. The steps to apply for a Director ID number online can be found on the ABRS website.
If you are unable to apply online, you can apply by phone by calling the ABRS on 13 62 50 (in Australia) or +61 2 6216 3440 (outside Australia). This method will require an Australian tax file number (TFN) and verification of your identity.
If the online application and phone application won’t work for you because you do not have a TFN, you can apply using a paper form. This method is a slower process and requires you to submit certified documents to verify your identity.
If you need more time to apply for your Director ID number, you can apply for an extension by submitting a paper form to the ABRS.
When do company directors need to have their Director ID by and what happens if they miss the deadline?
All Directors of company’s appointed on or before 31October 2021, need to apply for a Director ID number by 31 November 2022. New Directors or people that are thinking of becoming a Director, will need to apply for a Director ID number prior to being appointed as Director. ASIC is responsible for enforcing the Directors meeting their Director ID application and potential penalties may apply for failure to register for Director ID, applying for multiple Director ID numbers or misrepresenting Director ID which could potentially include fines, imprisonment or both.
What should directors keep in mind when applying for their Director ID Number?
Directors should ensure when you are applying for your Director ID number that all details on file with the ABRS match your identity documents (passport being the most important). This includes listing all middle names and ensuring that your place of birth is up to date and accurate. This is critical to ensure that all business registers match and any historical errors for Director registrations can be updated to correct details.
If you have any further questions on how to apply for your Director ID Number, please contact us.
