Director’s IDs – Time is running out to get your Director ID by 30 November 2022
In October 2021, the government introduced legislation requiring directors and some other office holders to obtain a unique identifier called a Director ID (DIN).
Applying for a DIN is free and permanently allocated to you, even if you cease to hold office, your DIN can be used at a later date should you hold office again.
DINs permit directors’ profiles to be traced along with their association with companies over time. You must verify your identity with the Australian Business Registry Services (ABRS) before you can obtain a DIN. This strict identity process helps prevent the use of false or fraudulent identities. It also aids in identifying and addressing director involvement in unlawful activity, such as illegal phoenix activity. Illegal phoenix activity is a process where a company is liquidated, wound up or abandoned to avoid paying its debts only for a new company to be started soon thereafter to continue the same business without the debt, effecting employees, suppliers, and subcontractors.
You will need a DIN if you are a director of a company (including corporate trustees and charities) or of an Aboriginal and Torres Strait Islander corporation. You do not need a DIN if you only sit on a management committee of an incorporated association, that of a company secretary or if you run your business as an individual in partnership or as a sole trader.
Deadline for ID
All directors must have a DIN by 30 November 2022 however some directors must have a DIN much earlier than that in order to be compliant.
Corporations Act directors
|
Date you become a director |
Date you must apply |
|
On or before 31 October 2021 |
By 30 November 2022 |
|
Between 1 November 2021 and 4 April 2022 |
Within 28 days of appointment |
|
From 5 April 2022 |
Before appointment |
CATSI Act directors
|
Date you become a director |
Date you must apply |
|
On or before 31 October 2022 |
By 30 November 2023 |
|
From 1 November 2022 |
Before appointment |
If you apply for a DIN and are not currently a director and do not hold office within 12 months of obtaining a DIN, your DIN will lapse. However, if you apply at a later date, you will be issued the same number.
How to apply
Applications for DIN are commenced on the ABRS website and you will need a myGovID. A myGovID is different to your MyGov account and is instead used to verify your identity. You must apply yourself. No one else can apply on your behalf.
Once you have your DIN, it will need to be provided to your company.
Penalties?
If you do not comply with the DIN requirements, penalties will apply. This includes if you provide false information or obtain more than one DIN.
ABRS is conducting audits of newly appointed directors who may not have applied for their DIN and contacting them to make them aware of their obligations. As with any new legislation, the initial focus on education and awareness will transition to compliance and penalties in time, with the ABRS referring the matter to ASIC for enforcement action.
Whilst we cannot apply for a DIN for you, if you have any questions about your obligations or the requirements of your company to comply, contact us and we would be happy to provide you with guidance.
This document offers general information only and should not be relied upon as legal advice under any circumstance. Please contact your solicitor for clarification on any areas.