A Director Identification Number (Director ID) is a unique identifier for directors and alternate directors. The concept was introduced in the 2020 budget Digital Business Plan and now legislated to:
- Prevent the use of false or fraudulent director identities;
- Make it easier for external administrators and regulators to trace directors’ relationships with companies over time; and
- Identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
Each director will have their own personal Director ID which is a 15-digit number. They will need to apply for it themselves which can be done most easily through their myGovID login (see details below). Then, once issued, they will maintain the same Director ID forever, or for as long as they are actively a director. If a Director ID has not been used for a period of 12 months, it will be changed to an inactive status and that director will need to re-apply to have their Director ID reinstated.
Going forward, if you want to become a director or are already one, you will need a Director ID. You can apply for Director ID’s from November 2021.
The key deadlines that have been introduced to phase in the new requirements are based on the date you became 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 will need to apply within 28 days of appointment.
- From 5 April 2022 you will need to apply for a director ID Number before registering a company.
Make sure you diarise the date that is applicable to you.
Director ID Obligations
As a director, you will soon have these immediate and ongoing obligations relating to Director IDs. Specifically, you will need to:
- Apply for a Director ID within the relevant timeframes listed above;
- Not apply for more than one Director ID;
- Provide your Director ID to your corporation record-holder; and
- Make sure to keep your details linked to your Director ID up to date, including, name, role and address.
If you do not meet your obligations during the required time-frame, there may be civil or criminal penalties and you may be issued with an infringement notice.
How to Apply
From November 2021, directors will be able to apply for their personal Director ID through the online myGovID platform. All directors will need to supply key pieces of personal information to complete a verification of identity process with the ATO.
Click here for step by step instructions on how to apply.
Note, if you cannot set up or do not have access to the myGovID platform, there is also an alternative paper application method available.
While directors will need to apply for their Director ID themselves, please reach out to our firm if you need further information or guidance through the process.