Have you obtained your Director ID?
All directors of a company registered Australian body, a registered foreign company or Aboriginal and Torres Strait Islander corporations are now required to obtain a director ID.
What is it?
A Director ID is a unique identifier that all directors will now be required to have. This number will only be applied once and kept forever with the aim of preventing the use of false or fraudulent director identities.
How do I know if I need one?
If your business ends in Pty Ltd (Proprietary Limited), then you are most likely a Director. If you also have a close relative working in your business with you – they may be a Director as well. To find out for sure, you can check your company’s ASIC extract, a listing of the company details that is held with the Australian Government.
What does it mean to have a Director ID?
Having one Director ID for life will enable regulators to keep track of directors of failed companies who use fabricated identities and prevent the use of false or fraudulent director identities. This is also a win for small businesses as it will help keep out operators that are constantly breaking the law.
The Laws apply now – what you need to know.
- As of the 5th of April 2022, all new directors must apply before they can be appointed director.
- Existing Directors or entities have until the 30th of November to apply.
- A person who intends on becoming a director can apply up to 12 months prior.
- Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) must apply by 23 November 2023.
- Directors of incorporated associations (charities and NFPs) registered with the ACNC do not need a Director ID. The exception to this is if the directors of incorporated associations that have an Australian Registered Body Number (ARBN) to operate outside their ‘home’ state or territory. Directors of an incorporated association with an ARBN will need a director ID even if they are not ACNC registered.
How do I apply for a Directors ID?
To apply for a Directors ID, you must visit the Australian Business Registry Services (ABRS) online, as they are responsible for administering.
Can my Bookkeeper help?
Your Bookkeeper can:
- provide information – help your businesses to understand and implement the Director ID process.
- only help the business owner.
Your Bookkeeper cannot:
- apply for a business owner (even if they log you in).
- cannot advise to set up companies/trusts etc. It is tax and legal advice that is out of scope for Bookkeepers and BAS Agents and has too many legal consequences.
- pretend they are the client and apply for them.
Directors must apply themselves – using their myGovID.
What happens if I don’t get a Directors ID?
If a director does not comply, they can be fined up to $1.1 million and possible imprisonment of up to 12 months. Further penalties will apply for anyone applying for multiple Director IDs, misrepresenting their identification numbers to a Government or registered body, or providing false information during their application process.
