Company Directors Must Apply for a Director Identification Number
From November 2021, company directors will need to verify their identity as part of a new director identification number (Director ID)
regime. The Director ID will be a unique identifier that a director will apply for once and will keep forever. The new regime is expected to
cover more than 2.5 million directors.
So what exactly is a Director ID? A Director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity.
A Director ID:
• starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166
• ends with an 11-digit number and one ‘check’ digit for error detection.
Directors will only ever have one Director ID. They’ll keep it forever even if they change companies, stop being a director, change their
name or move interstate or overseas.
Who needs a Director ID? You need a Director ID if you’re an eligible officer of a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act).
An eligible officer is a person who is appointed as a director or as an alternate director who is acting in that capacity. Importantly, it
is not only the directors of trading companies that need a Director ID. If you’re a director of a passive investment entity or indeed a
corporate trustee (such as of a discretionary trust of a self-managed super fund), you too will need to apply for a Director ID.
How is a Director ID obtained? Applications for a Director ID are free and opened on 1 November 2021.
The fastest way to apply is online via the ABRS platform at www.abrs.gov.au/directoridentification-number
To log in to ABRS online, the director will also need a myGovID which is different from myGov. We recommend chatting to your Bookkeeper or
Accountant to assist in establishing a myGovID. It’s also important to note that Directors must apply for their Director ID themselves
because they will need to verify their identity by producing their myGovID alongside two identity documents from a list including: their
bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary, or PAYG payment
summary.
How is a Director ID managed? Once a Director ID is obtained, it should be passed on to any relevant persons, which might include:
• the company secretary.
• another director.
• the accountant and the ASIC Registered Agent (if different from the Accountant).
Penalties Directors who fail to apply for a Director ID within the stipulated time frame can face criminal or civil penalties of 5,000 penalty units, which currently stands at over $1.1 million. Directors of a CATSI organisation can face penalties of up to $200,000. Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple Director IDs.
