ABRS Introduces New Director ID Requirement

The government is introducing a new requirement for directors called the Director ID, a unique identification number that will help prevent the use of false or fraudulent director identities. This will be implemented by the Australian Business Registry Services (ABRS) under the Australian Taxation Office (ATO).

 

Who needs a director ID?

Introduced in November 2021, all directors, including officers acting in that capacity, now need to apply for their director ID. Individuals will need one if they are a director for:

• a company, a registered Australian body or a registered foreign company under the Corporations Act 2001
• an Aboriginal and Torres Strait Islander corporation registered under the CATSI (Corporations Aboriginal and Torres Strait Islander) Act 2006

To verify identity, only directors can apply for their ID. They will be assigned a unique identification number that will be kept under their name forever. This will make it easier for regulators to associate directors with companies. 

 

When to apply for a director ID

All existing directors, including those who want to become one, are encouraged to apply for a director ID now. The deadline for applications is on 30 November 2022 for Corporations Act directors and 30 November 2023 for CATSI Act directors.

Applying for a director ID depends on the date when the individual became a director and whether they are a Corporations Act or CATSI Act director. 

It is a criminal offence if directors do not apply on time. If for any reason, the director cannot apply by the dates stated, they may file an application for an extension. Fill out the form here.

 

Director ID obligations

Directors are required to meet obligations including:

• applying for a director ID within the relevant timeframe for your situation
• applying for a director ID when directed by the Registrar to do so
• not applying for more than one director ID (unless directed by the Registrar)
• not misrepresenting your director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation
• not being involved in a breach of the above director ID obligations

 

How to apply for a director ID

The fastest way to get a director ID is to apply online using the myGovID app on a smart device. Individuals may also apply for a director ID via phone or paper application.

The myGovID app is free. (For more information on how to download the app and how to set up myGovID, click here.)

Online application

Step 1 – Set up myGovID 

Directors should have a myGovID with a Standard or Strong identity strength.

Those living outside Australia and who cannot get a myGovID with a standard or Strong identity strength will need to apply with a paper form and provide certified copies of their identity documents.

Step 2 – Prepare the documents

Directors will need to have access to information the ATO knows about them, including:

• their tax file number (TFN)
• their residential address as held by the ATO
• information from two documents to verify their identity
  • Examples of documents:
    • bank account details
    • an ATO notice of assessment
    • super account details
    • a dividend statement
    • a Centrelink payment summary
    • a PAYG payment summary

Find more information on verifying identity here.

Step 3 – Complete application

After ensuring they have a myGovID with a Standard or Strong identity strength, plus information to verify their identity, individuals may now log in and apply for a director ID. The application process should take less than 5 minutes.

Phone application

Directors applying via phone will need:

• an individual Australian TFN
• their residential address as held by the ATO
• answers to 2 questions based on details the ATO knows about them
• two identity documents — one primary and one secondary document

Paper application

Those who cannot apply online or over the phone may fill out a downloadable form here and submit it to the ABRS along with certified copies of:

• one primary and two secondary identity documents, or
• two primary and one secondary identity documents

Find a list of primary and secondary identity documents and how to certify them here.

Note that paper application is a slower process. Do not send original documents as these will not be returned.

For more information on the director ID, visit abrs.gov.au.