New Rules for Company Directors in Australia

From November 2021, Australian Company directors will need to apply for a director ID. The director ID is a unique identifier which will be permanently linked to a director, even where the director ceases to be a director or changes their name.

How to Apply

Applications for a director ID are free and will be done through the Australian Business Registry Services (ABRS) from 1 November 2021.

1. To apply, directors will firstly need to setup a myGovID. You can find out how to setup a myGovID here: https://www.mygovid.gov.au/set-up. Once you have your myGovID, you will need the following information:
2. Your tax file number (TFN).
3. Your residential address as held by the ATO.
4. Information from at least two documents to verify your identity e.g., superannuation account details, ATO notice of assessment or PAYG payment summary.

When to Apply

The timelines for directors to apply for the director IDs are as follows:

1. If you are an existing director – you will need to apply by 30 November 2022.
2. Directors appointed between 1 November 2021 and 4 April 2022 – will need to apply within 28 days of appointment.
3. Directors appointed from 5 April 2022– will need to apply before appointment.
4. Directors of Indigenous corporations – will need to apply for a unique identifier by 30 November 2023.

Penalty

Directors who fail to apply for a director ID within the stipulated time frame, or who provide false identity information to the ABRS, or who apply for multiple director ID’s can face criminal or civil penalties of 5,000 penalty units, which is currently equal to $1.11 million.

If you have any questions or would like further information, please contact Solomon Hollett Lawyers on (08) 6244 0985 or Contact Us through our website.