Tag: MAQ Clients

Company Directors need to know about the new Director Identification Number (“Director ID”).

Put simply, Company Directors will need to apply for their Director ID themselves using their myGovID.  This is an extra layer of information that the Australian Business Registry Service will use to catch fraud, trace relationships, and identify unlawful director activity.

The Australian Business Registry Services (ABRS) is a new service which will bring together the Australian Business Register (ABR) and over 30 Australian Securities and Investments Commission (ASIC) registers.

In other words, the government looks like it’s combining databases to keep a better eye on company directors and businesses in general. Big brother is watching!

Resources to help you

More information about Director ID is below.  You can also find more information and start to apply at the ABRS website here.

Take a look at more information and the official ABRS video here.

Key points to note:

• You will need to apply for your own Director ID – we cannot do this for you.
• You can apply from 1 November 2021.
• If we look after your company’s ASIC affairs we will check in with you to ensure you have a Directors ID when we do your company’s next Annual Review. But only you can apply.
• You’ll need to keep your own personal information up to date – if you move house you’ll need to advise ABRS within 7 days and let us know so that we can advise ASIC within 28 on behalf of your company (or companies).

If you have any questions, feel free to let us know.

But if you have questions about the application process, you’re best bet is to call ABRS directly – details are here.

What 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 with the government.

Who needs to apply?

If you want to become a director or are already one, you’ll need a director ID.

You need a director ID if you’re a director of a company or a corporate trustee, for example, a company trustee of a self-managed super fund or a company trustee of a discretionary trust.

You don’t need a director ID if you’re a company secretary but not a director or if you are running a business as a sole trader or partnership. You also don’t need one if you’re referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act.

Apply once – keep forever

When must you 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 between 1 November 2021 and 4 April 2022 you must apply within 28 days of appointment
• If you become a director from 5 April 2022 you must apply before you’re appointed a Director

How to apply

We can’t apply on your behalf. You need to do this yourself using your myGovID.
• Step 1 – Set up myGovID with the ATO
• Step 2 – Gather your documents
• Step 3 – Complete your application

IMPORTANT! It’s important to gather the right documents before you start. You’ll lock yourself out for an hour if you can’t correctly input details from two types of documents.

As at the date of writing this update, you can use any TWO of the following documents for Step 2:

• Bank account needs to be a bank account you’ve received a tax refund into or that you’ve earned interest on and reported on your tax return
• A copy of your Notice Of Assessment from the last two years
• Details of a superannuation account statement from the last five years
• Dividend statement from the last two years
• Use a Centrelink payment summary issued in the last two years.
• Use a PAYG payment summary issued in the last two years and NOT the Income Statement most employees are used to receiving now. If you don’t have a PAYG payment summary issued in the last two years, you will need to select a different document.

Get them together before you start – if you try to wing it then you may end up locking yourself out of the process for an hour!

Once you have your Director ID

When you receive your director ID, you need to pass it on to your company to update the company register.

If we look after your company ASIC affairs you will need to provide the ID number to us so that we can update the company register for you.

Keep your details up to date

You must notify your company within seven (7) days when your personal details change. For instance, your name, your role or your address.

In turn, your company must notify ASIC of the change within 28 days to avoid late fees.

If you tell ASIC of your change one month late then the ASIC fine is $83, and more than one month late an additional $344 fine applies.

Protecting your identity

Your director ID is a bit like your Tax File Number (‘TFN’); it confirms your identity and traces your relationships to companies.

There are strict rules around how director IDs can be used. For now, your director ID will not be searchable by the public.

Linking your Director ID to the Companies you are connected to

Currently there is no requirement to provide your director ID to ASIC or to the companies you’re a director of. The ASIC companies register will be transferred to the ABRS, expected in September 2023. This is when your director ID will need to be linked to the companies you’re a director of. We’ll keep you up to date with changes. For now, you should continue to use the ASIC registers as you currently do.

ASIC have more information about Director ID on their website here and how Director IDs will be transitioned to ASIC Company Registers.