Introducing Director ID: Ensuring Transparency and Accountability in Australian Business
The Australian Securities and Investments Commission (ASIC) Modernising Business Registers Program’s (MBR) first service delivery is the director identification number or director ID. This requirement is now available on the Australian Business Registry Services (ABRS) website. Managed by the ATO the ABRS streamlines how you register, view, and maintain your business information.
The Director ID is a unique identifier that, once applied for, stays with you forever. It was designed to prevent the use of fraudulent or false director identities. Your director ID remains with you even when you stop being a company director, change your name, or even move (within Australia or overseas).
If you are already a company director or planning on becoming one, you must apply for your unique director ID.
What You Need To Do
It’s free to apply and the fastest way to apply is online. The ABRS has other options available for those who can’t apply online. See Apply for your director ID
Applying online requires a myGovID with a Standard or Strong identity strength. If you don’t have the myGovID app, then you can set it up at www.mygovid.gov.au/setup
You must also verify information on their ATO record, such as a Notice of Assessment, bank, or Super details. Once you have this information, the online application is intuitive and takes less than 5 minutes. You will get your director ID instantly.
You need to be sure your ATO details are current and you are aware of what details are held there. For example, if you use your Super details as one of your ID checks, be sure you have the EXACT details stored on your ATO file.
You then need to give your new director ID to the company secretary of any company you are a director of and your tax or ASIC agent. This video will also assist with what is needed Director ID overview.
From 5 April 2022 all directors will need a director ID before they are appointed. We will make this part of our checks when registering a company or appointing a director for our clients.
Important Dates
The dates for when you need to apply, depend on when you become a director.
- The first key date is those who become a director between 1 November 2021 and 4 April 2022. They need to apply within 28 days from their appointment.
- If you were already a director before 1 November 2021, then you need to apply before 30 November 2022.
- If you are registering a company or appointing yourself as a director, you must apply for a director ID up to 12 months before your appointment.
A full list of key dates, including directors of Aboriginal and Torres Strait Islander corporations, is available here: Who needs to apply and when.
The Director ID requirement represents a significant step towards enhancing transparency and accountability in the Australian corporate landscape.
By mandating a unique, permanent identifier for company directors, the initiative seeks to prevent fraudulent practices and ensure that directorship information is accurately maintained and accessible.
Company directors, both existing and aspiring, must familiarise themselves with the application process and adhere to the specified timelines to comply with these new regulatory standards, thereby contributing to a more trustworthy and reliable business environment in Australia.
