Director IDs are finally here. What you need to know.

Corporate Update

13 Oct

Written By AGH Law

First announced in September 2017 in response to the Phoenix Taskforce’s recommendations towards preventing illegal phoenix activity and tracking the activities of individual directors, from November 2021 directors will need to verify their identity as part of a new director ID requirement under the Australian Business Registry Services (ABRS), established by the Federal Government’s implementation of the ‘Modernising Business Registers Program’ (MBR Program).

Director Identification Number

A Director Identification Number (Director ID) is a unique identification number that all existing directors will be required to have by no later than 30 November 2022. This applies to directors of:

companies;
registered foreign companies;
registered Australian bodies; and
Aboriginal and Torres Strait Islander corporations.

The MBR Program, which was part of the Government’s 2020 Budget Digital Business Plan and which is being implemented by the Australian Taxation Office, establishes the ABRS. Its function is to streamline the way that you register, view and maintain your business information, by combing ASIC’s 31 separate business registers and the Australian Business Register onto a new, modern system.

The Director ID requirement is the ABRS’s first function. Whilst it is currently in a testing phase, applications are open as of November 2021, and directors will be able to apply for their own Director ID via the ABRS website.

When to apply

Under the new laws, directors that appointed on or before 31 October 2021 have until 30 November 2022 to apply, however directors are encouraged to submit an application for their own Director ID via the ABRS website at their earliest convenience after applications open in November 2021.

Importantly, if you are appointed as a director to an entity between 1 November 2021 and 4 April 2022 (inclusive), you must apply for a Director ID within 28 days of that appointment. From 5 April 2022, you must hold a Director ID prior to your appointment as a director.

How to apply

Directors must apply for their Director ID themselves.

The first step towards obtaining a Director ID is to apply for a MyGovID number. A MyGovID number is different from the ‘MyGov’ platform. MyGovID is an app that you can download to your phone. It lets you prove who you are and log in to a range of Government online services.

The second step is to gather the relevant documentation, being:

your Tax File Number;
your residential address (as held by the ATO); and
verification of identity documentation, such as:
- bank account documentation;
- a PAYG payment summary;
- an ATO notice of assessment;
- a dividend statement; and/or
- your superannuation account details.

The third and final step is to complete your application via the ABRS website.

As an alternative, directors will also have the option of applying over the phone or via paper form.

Important

The contents of this publication should not be relied upon as legal advice, but instead as commentary and general information. Specific legal advice about your circumstances should always be sought separately before taking any action based on this publication.

Liability limited by a scheme approved under Professional Standards Legislation.