We again take this opportunity to remind all clients about the requirement for all company directors to obtain the new Director ID number.
All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporations are now required to obtain a director ID.
A director ID is a unique identifier that a director will apply for once and keep forever, and is aimed at preventing the use of false or fraudulent director identities.
If your small business is set up under a proprietary limited (“Pty Ltd”) structure then you are most likely a company director. Anyone else closely involved in your business – typically a spouse, sibling, or parent – could also be a director.
Directors of a company will appear on the company’s ASIC extract, a listing of the company details that is held with the Australian Government.
The deadline for applying for a director ID depends on when you become a director:
- Existing directors have until 30 November 2022 to apply,
- Directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment, and
- From 5 April 2022, intending directors must apply before they are appointed.
Directors will need to apply for their director ID themselves, so their identity can be verified.
Their authorised tax, BAS or ASIC agent cannot apply for a director ID on their behalf.
Australian Business Registry Services (ABRS) is responsible for administering director ID numbers and will provide support and guidance to directors to assist them to understand and meet their director ID obligation. Please visit their website for more information about director ID.
Please note there are substantial fines that can be levied for any director who does not obtain their Director ID by the due dates so please do not procrastinate over this requirement.
Please contact us if you require any further information about this very important update
