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Company directors are required by law to apply for a Director Identification Number

You may already be receiving enquiries from your clients who may be looking for support regarding director ID.

As a trusted agent or adviser, you can play a key role in communicating director ID requirements and can encourage the clients who are yet to apply to do so.

Australian Business Registry Services (ABRS) is responsible for the new director ID service. ABRS are contacting new directors who have not met their obligation to apply for their director ID under the current arrangements. 

 

Under current arrangements, new directors appointed for the first time between 1 November 2021 and 4 April 2022 have 28 days to apply for their director ID. 

 

From 5 April 2022, new directors appointed for the first time now must obtain their director ID prior to their appointment. 

 

Directors who cannot apply for their director ID within the specified timeframes can apply for an extension of time. Click here to get information about applying for extension available on the ABRS website.

 

Director’s legal obligations

ABRS will continue to engage new directors who have not met their obligation, to make them aware of the obligation and encourage application. Initially, the focus will be on education, awareness and helping directors to do the right thing. ABRS will notify and support directors who haven't applied in time.

Directors who fail to act on applying for their director ID within the specified period, that have not been granted an extension of time to apply, will be referred to ASIC for enforcement action. ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if directors do not apply on time. Click here to learn more about the offences and penalties under the Corporations Act 2001.

 

How can agents assist their impacted clients?

  • As a trusted agent or adviser, you can provide assistance to your clients by guiding them on the verification and application process, including if your client is required to get a director ID.​
  • You can support your clients by:
    • letting them know about the Director ID requirement, when and how to apply
    • ​Your clients will need a myGovID with a Standard or Strong identity strength to apply for a director ID online. If they don’t have the myGovID app they can set it up at www.mygovid.gov.au/setup
    • They will also need to verify information held on their ATO record, such as a Notice of assessment. They may need your assistance with finding this information. Once they have this information, the online application is intuitive and takes less than 5 minutes. They will get their director ID instantly.
    • They then need to give their director ID to the company secretary and their tax or ASIC agent.
  • These two videos can also assist with what is needed. Introduction to director ID for trusted advisers and Director ID overview for your clients.
  • From 5 April 2022 all directors will need a director ID before they are appointed. We suggest you make this part of your checks when registering a company or appointing a director for your clients.

 

How does it affect the current company registration process?

For now, there will be no change to how you register a company with us, hence there is no requirement to include the DIN in your company application form or any changes to company forms (484, etc). This will take place in the future as the ABRS builds the new registry platform, and we will keep you up-to-date with any developments during this course.

Click here to learn more about the MBR program.

 

Are there any changes to existing company notification requirements?

No. The director ID requirement does not replace or change existing requirements to keep company records updated. For example, directors must still notify their company of changes in address or other details. The company will still need to notify ASIC of any changes for the public record.

 

Am I required to provide my director ID to ASIC or companies?

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 late 2023. This is when your director ID will need to be linked to the companies you’re a director of. ABRS will keep you up to date with changes. For now, you should continue to use the ASIC registers as you currently do.

 


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