ASIC have introduced a director identification system and all directors must have an ASIC Directors ID number.
A new government agency call Australian Business Registry Services (ABRS) is administered by the ATO and will process applications and issue the Director ID numbers.
A Director ID is a unique identifier and each director will have one number and will keep it for life, even if you cease to be a director. The new system for Directors ID will help stop fraud and some tax evasion.
If you are thinking of starting a new company, I recommend that you apply for a Directors ID very soon. Exiting Directors should apply soon. Unfortunately only the individual Directors can make application on their own behalf, we as your accountant cannot do that for you.
We have detailed instructions on how to do that below in this video.
When should you apply?
This depends on when your first directorship commenced.
- After 5 April 2022: all Directors will need a Director ID before the company can be registered.
- 1 November 2021 – 4 April 2022: apply within 28 days of becoming a Director.
- Before 1 November 2021: apply before 30 November 2022.
If you are thinking of starting a new company and are not currently a Director you can apply for a Director ID up to 12 months prior.
What to do?
- Apply for your Director ID: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
- You will need a myGovID with a standard or strong identity strength to apply for a Director ID online. You can set one up https://www.mygovid.gov.au/set-up
- You will need to verify your information held at the ATO https://www.abrs.gov.au/director-identification-number/apply-director-identification-number/verify-your-identity this might request a copy of a notice of assessment.
Some videos have been produced by the ATO will give some further guidance.
If you have problems please do not hesitate to let us know.
The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our Accountants to discuss your particular needs.
