Do you need a Director Identification Number?
- Published: November 11, 2021
- Author: Asparq
The Federal Government has initiated a new system that requires company directors to obtain a Director Identification Number (Director ID) to help prevent the use of false or fraudulent director identities. If you are currently a company director, you will need a Director ID by November 2022. You can apply for a Director ID from 1 November 2021.
What is a Director Identification Number?
A Director ID is a unique 15-digit identifier that will be used for identification purposes for any or all companies you are a director of. This will mean better transparency of appointed directors of companies but also increased privacy protections.
The Australian Business Registry Services (ABRS) will administer the director ID register, which will gradually integrate all government business registers into one easily accessible register with greater security.
Who needs to apply?
According to the Australian Business Registry Services, you need a Director ID if you are an eligible officer of a:
- Aboriginal and Torres Strait Islander corporation
- corporate trustee, for example, of a self-managed super fund
- charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
- registered Australian body
- foreign company registered with ASIC and carrying on business in Australia.
An eligible officer is a person who is appointed as a director or an alternate director acting in that capacity. You will not need a Director ID if you are a sole trader.
When do you need to apply?
When you must apply for your director ID depends on the date you become a director.
- If you became a director on or before 31 October 2021, you must apply by 30 November 2022.
- If you become a director between1 November 2021 and 4 April 2022, you must apply within 28 days of your appointment.
- If you become a director from 5 April 2022, you must apply before your appointment.
How to apply
The easiest and fastest way to apply is online via ABRS using your myGovID. You need to apply for your director ID yourself to verify your identity. No one can apply for you. Applications can also be made by phone or on paper.
myGovID is different from myGov.
- myGovID is an app. You download the myGovID app to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
- myGov is an account. Your myGov account lets you link to and access online services provided by the Australian Taxation Office (ATO), Centrelink, Medicare and more.
What happens if I don’t apply for a director ID?
Failure to comply can attract an infringement notice or, for more serious breaches, incur civil or criminal penalties.
We are here to help. Get in touch if you would like to find out more about director ID numbers and company director obligations.
The information contained herein is of a general nature only and is not intended to be relied upon nor is it a substitute for appropriate professional advice. Whilst all care has been taken in the preparation of the material, it is not guaranteed to be accurate. Individual circumstances are different and as such require specific examination. Asparq cannot accept liability for any loss or damage of any kind arising out of the use of or reliance upon all or any part of this material. Additional information may be made available upon request.