All current and aspiring company directors must be aware that applications for director identification numbers (director ID) open from today, 1 November 2021.
What is a director ID?
A director ID is a 15-digit identification number that an individual will keep for life. This director ID will trace the relationship a director has to companies over time.
Why have director IDs been introduced?
Before these changes were made, directors were only required to provide their name, date and place of birth when becoming a director of a company. Small variations in any of these details meant that there would be multiple records with ASIC for the same person – that affected the ability to track an individual who was a director of multiple companies.
The director ID scheme aims to increase the traceability and accountability of directors, to assist in addressing illegal phoenix activity. Director ID’s will be made available publicly by the Australian Tax Office (ATO).
|Existing directors||Must apply for a director ID by 30 November 2022|
|New directors until 4 April 2022||Must apply for a director ID within 28 days of their appointment|
|New directors after 5 April 2022||Must apply for a director ID before their appointment|
How do I apply?
Applications are made through the new ABRS website, using your myGovID and must be done personally, not on behalf of someone else
If you require more information on the new director ID’s, or are worried that these new director ID provisions may affect you or your business, please don’t hesitate to contact our Commercial + Property team.
The assistance of Harry Bligh, Law Clerk in researching this article is gratefully acknowledged.