All directors of Australian entities will soon need a director ID. Applications open in November 2021.
Why was Director ID introduced?
New rules are now being introduced in Australia to help combat directors using fake identities and crack down on illegal phoenixing. Applications for the unique identifier, which a director applies for once and keeps forever, will open in November with Australian Business Registry Services (ABRS).
Importantly, directors (even foreign directors) will have to apply for the director ID identity themselves. Business advisers, such as their accountants, and admin staff cannot apply on a director’s behalf.
Directors of multiple companies will only have to register once and maintain one director ID record.
Who needs a director ID?
Directors and alternate directors of Australian companies, Aboriginal and Torres Strait Islander corporations, registered Australian bodies and registered foreign companies all require a director ID.
People operating as sole traders or in partnerships, and company secretaries who aren’t directors, don’t need a director ID.
Applicants need myGovID, information the Australian Taxation office (ATO) already holds (such as a tax file number and residential address), plus supporting documents to verify their identity. ABRS recommends applying online, but you can also apply over the phone or with paper forms if required.
- November 2022 deadline Most existing company directors need to have director ID in place by November 2022.
- November 2023 deadline Existing directors of Indigenous or Torres Strait Islander corporations have director ID by November 2023.
- New Directors In a transition period from November 2021 until April 2022, any new director must apply for an ID within 28 days. From 5 April 2022, new directors need to have applied for their ID before being appointed.
If you need further information, please feel free to contact us.