Director ID Mandate for Company Directors

Are you a company director? Time is running out! The Australian Securities and Investments Commission (ASIC) states that all company directors are required to apply for a Director ID. In order to distinguish directors and avoid cases of fraud identities, a unique identifier will be applied to directors to use forever.

What is Director ID?

To verify your identity as a company director, a 15-digit identification number will be allocated to directors indefinitely, even if you stop being a director or other circumstances change such as moving overseas or switching companies. This initiative was introduced as part of the Government’s Modernisation of Businesses Registers (MBR) Program, to curb fraudulent activity.

In regard to privacy, your Director ID will not be accessible by the public or anyone unless permission is given by the director.

Directors of foreign companies, Aboriginal and Torres Strait Islander Organisations, registered Australian bodies or even corporate trustee of self-managed super funds, will have to apply for a Director ID. You won’t need one if you are running a business as a sole trader or individuals in partnership.

As a precaution it is important to think of your Director ID as similar to a Tax File Number, in that they should not be revealed without necessity.

How to apply

It is free to apply for a Director ID. The process of applying is similar to applying for a Tax File Number. However, unlike a TFN, you are the only one who can apply for it. You cannot ask you accountant or lawyer to apply for your Director ID on your behalf.

First navigate to the Australian Business Registry Services’ website- https://abrs.gov.au/ directoridapply. Then click the button that says ‘Apply now with mygovid’ and login using your mygovid details. If you don’t have a mygovid account, you can easily sign up via the sitehttps://mygovid.gov.au. Or you can download the mygovid app and apply via that platform.

Next, you will be asked some questions to verify your identity. To fast-track this step, have ready beside you: your Tax File Number, two forms of identification, and your residential address as listed with the ATO.

Once you’ve answered those questions, you will be required to fill out a quick Director ID

application form. Once you have done this you can click submit and will immediately be issued your unique Director ID, displayed on your screen. If you are unable to apply for the ID online, there are other non-digital options available. Details are available on the ABRS website.

There is no need to give ASIC or anyone else your Director ID but it is best to keep with your financial records.

Penalties

The penalties for not applying are extreme and the maximum penalties are in excess of $1 million. Penalties also apply for applying multiple times and for misrepresentation.

So, if you are a director of a company and still have yet to set up your Director ID, log on to the ABRS website and navigate your way to the business section to apply. Keep your own business as well as fellow businesses safe by applying now.

Do not miss your application cut-off date or you will face heavy fines or even jail time!