Government Director ID requirements now law
- The government has introduced legislation requiring all existing Company Directors (including Directors of SMSF Corporate Trustees) to apply for a director identification number (Director ID) by 30 November 2022.
What you need to know today:
Directors must apply for their Director ID personally on the newly established Australian Business Registry Services (ABRS) and will be required to produce their myGovID alongside two identity documents from a list including their bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary and PAYG payment summary.
- While existing directors will have a year to apply for their director ID, new directors appointed between 1 November 2021 and 4 April 2022 will have just 28 days after appointment to apply for their director ID.
- New directors who are appointed from 5 April 2022 will be required to apply for their director ID before the appointment.
- Directors of Indigenous corporations that are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) will be required to apply for the unique identifier by 30 November 2023.
What happens if a Director fails to register?
Under the law, directors who fail to apply for a director ID within the stipulated time frame can face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million.
Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple director IDs.
The government expects the director ID regime to help prevent illegal ‘phoenixing’ activities by ensuring directors can be traced across companies, while also preventing the use of false or fictitious identities.
Find out more about the director ID regime on the new ABRS website.
Read more about your obligations in our blog article here.
