Action Needed - Director ID Deadline Fast Approaching
The application deadline for Director ID numbers is fast approaching.
A Director ID is a unique identification number assigned to a director. It only needs to be applied for once and is valid indefinitely. You will need a Director Identification Number (Director ID) if you are:
A director of a company.
A registered foreign company or Australian body.
Directors of SMSF corporate trustees, that is, anyone with a SMSF that currently has a corporate trustee or will move to a corporate trustee in the future.
A sole trader does not need a Director ID.
Why you need a Director ID
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
All directors are required by law to verify their identity with us before receiving a director ID. This is important because it will help 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
identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt.
What are the Deadlines?
You will need to personally apply for your Director ID as it requires personal identification verification. Your authorised Tax, BAS or ASIC agent cannot apply for one for you.
There is no cost to apply.
Instructions on how to apply for a Director ID can be found on the ABRS website.
For an overview of Director IDs, go to the ATO website.
What are the Director ID Offences and Penalties?
ABRS will provide support and guidance to directors to assist them to understand and meet their director ID obligation.
ASIC’s enforcement role covers four new director ID offences under the Corporations Act 2001.
What do I do with my Director ID?
Once you have successfully registered and received your Director ID, notify JPR, make a note of it and keep it safe.
Am I required to provide my Director ID to ASIC or Companies?
Currently there is no requirement to provide your Director ID to ASIC or to the companies you’re a director of. ASIC will keep you up to date with changes.