Company Director? You need a Director ID!
From 1 November 2021, any director or prospective director of an Australian company must apply for a Director Identification Number (“Director ID”).
A Director ID is a unique identifier that will be issued to an individual director by the Australian Business Registry Services (“ABRS”) and which the director will keep forever. The ABRS is a contemporary digital registry system administered by ASIC.
How to apply
Individual directors can apply for a Director ID by paper, telephone or online via the ABRS website: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
The fastest way to apply for a Director ID is online using your myGovID. If you do not already have a myGov ID, you will need to set that up before applying for your Director ID online.
Once you have logged into the system using your myGovID, you will be asked to verify your identity by way of reference to documents containing information which is held by the Australian Taxation Office including, for example, your bank account details, ATO notice of assessment or superannuation account details.
When the verification process is complete, you will be issued with your Director ID.
If you already have a myGovID, the application process to obtain a Director ID should take less than 5 minutes. If you do not already have a myGovID and need to establish that first, the process will take slightly longer.
When do you need to apply
Any person who became or becomes a director of an Australian company:
- on or before 31 October 2021 must apply for their Director ID by no later than 30 November 2022;
- between 1 November 2021 and 4 April 2022 must apply for their director ID within 28 days of their appointment as a director;
- from 5 April 2022 must apply for their director ID prior to their appointment as a director.
Do you have to apply more than once?
No. Once you have applied for and been issued a Director ID, that is your Director ID for life. You do not need to apply for a new Director ID for each appointment as a director. Your Director ID is very much like your personal tax file number.
What if you don’t apply
Directors who fail to apply for a Director ID within the stipulated timeframes may be issued with an infringement notice or face criminal or civil penalties of up to $1.11 million. The penalties are not worth it. Apply for your Director ID today!
Can someone apply on my behalf?
No. You must apply for your own director ID because you need to verify your identity.
Sarah Stoddart is a commercial lawyer who specialises in the pharmacy and broader healthcare industry. She prides herself on being approachable and helping clients resolve their legal issues in a practical and timely manner.
If you require assistance with healthcare related matters including business or property transactions, regulatory approvals or leasing, please contact Sarah Stoddart on 0421 798 339 or email@example.com
This article is intended to be for general information only. It does not constitute legal advice nor does it establish a relationship of client and lawyer. Specific circumstances or changes in law may vary the accuracy or applicability of the information published. We recommend seeking specific legal advice particular to your circumstances before taking any action, or refraining from taking any action, on any issue dealt with in this article.