Updated: Oct 20, 2022
Have you ever heard of a Director ID number? Well if not, now is the time to push aside the rock you have been living under as they have well and truly arrived. Yes it's new, yes you need one and no we can't do it for you. OK now we have worked through that here are some things you need to know.
So what is a Director ID we hear you say?
It is a Director Identification Number (DIN). If you are a Director or Secretary of a company you will need one. It is a 15 digit number that identifies you and will be attached to you for your lifetime.
Well there has been a rise in phoenix activities accounting for losses of approx $3-$5 billion per annum from 'fictitious directors' and directors moving assets from one company to another to avoid paying debts, yep this stuff happens and it stuffs it up for everyone (cowboys do exist and it ruins it for all of us, ugh)
So in a nutshell, having a Director ID attached to an individual will allow regulators to track corporate history to try to stamp out these naughty activities. We can assure you that you don't want to get on that naughty list as there will definitely be no presents from Santa.
So do I need one?
If you are a director or secretary of any company (under the Corporations Act) then YES. This doesn't include board members of incorporated associations though.
And how do I get one?
Follow the bouncing ball here ...
Click on this link https://www.abrs.gov.au/director-identification-number + select Apply Now
You will need to have MyGov ID setup (different to MyGov, yes we know). If you don't have one, you can apply here https://www.mygovid.gov.au/set-up
Once completed you need to verify your ATO record through MyGov ID
Once completed you will be directed to 'Apply for a DIN' so you can fill out the online form. Heads up you will need access to your tax file number (TFN), residential address as held by the ATO + information from 2 documents to verify your identity. We recommend you use notice of assessment (Date of issue and reference number) and superannuation details (ABN and member number) - We can provide these details to you.
Once completed you will receive your Director ID automatically online.
You will not receive a copy via post so make sure to download, print and keep on permanent file. It will also not be publicly available. You can access it via the ABRS portal (https://www.abrs.gov.au) at any time if you misplace it though.
Having trouble? (you are not alone BTW) you can apply via phone
Just give them a call on 13 62 50 (and be prepared to hold on the line for a while, you have been warned). You will need to verify your identity with:
your tax file number (TFN)
your residential address as held by the ATO
answers to 2 questions based on details the ATO know about you, ie, details from ATO letters or notices or details from a tax return
Still having trouble?
Check out these resources, there is even a video you can watch https://www.abrs.gov.au/director-identification-number
Can we apply on your behalf?
We would love to help but unfortunately we are not allowed too, you need to verify your own identity and we cannot do this on your behalf.
When do I need to apply?
You can apply for a Director ID now if you want too, best to get it out of the way right? 😊
If you're planning on becoming a director, you need to apply before you’re appointed.
But when you must apply for your Director ID depends on the date you become a director as follows:
Date you become a director
Date you must apply
On or before 31 October 2021
By 30 November 2022
From 5 April 2022
We don't want to scare you but it will be considered a criminal offence if you do not apply on time and we take seriously our task of keeping you out of jail so please please please do it before 30 November 2022.
So you have a Director ID, what now?
The linking of companies to Director ID's will take time so don't be concerned if your companies are not linked yet, it will eventually come.
If the legal name attached to your Director ID is different to what is listed in your company registers please make contact with us so we can update ASIC.
Once you have your Director ID, you can view, update and manage your details online at any time. Click here for more information
Protect your Director ID as it confirms your identity and your relationship to a company. Only give your written consent to being appointed as a director of a company if you will play an active role in overseeing the company's business affairs. If you suspect someone has been misusing your identity or Director ID please make contact with ABRS.
So there you have it, yep another hurdle to jump over to become a Director but it will help to keep us all honest!
Disclaimer: This blog is for general informational purposes only. For advice on your specific situation, please contact a tax professional, ie us 😊