Company Directors Must Apply for the New Director ID by November 2022
Australian company directors have been given just over a year to apply for the new Director Identification Number (dubbed the Director ID).
The deadline is 30 November 2022.
Failure to apply for the Director ID before that time may result in fines of over $1 million for directors of corporations governed by the Corporations Act 2001, and fines of up to $200,000 for directors of Indigenous corporations governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
When Will Applications Open?
Applications for the Director ID will open in November 2021 on the new Australian Business Registry Services (ABRS).
The ABRS is a single platform administered by the Commissioner of Taxation that brings together ASIC’s 31 business registers and the Australian Business Register.
When applying for the ID, directors must produce their myGovID alongside two identity documents.
The new ID will be attached to a director permanently, even if they stop acting as a director or move overseas permanently.
Applications for a Director ID will be free of charge.
What About New Directors?
New directors appointed between 1 November 2021 and 4 April 2022 will have 28 days from their appointment to make an application for their Director ID.
Directors appointed after this period will be required to apply for their ID prior to their official appointment.
What Happens if I Don’t Apply for a Director ID?
By law, directors who fail to apply for a Director ID risk the imposition of criminal or civil penalties (above).
Penalties will also apply for undermining the requirements, such as intentionally applying for multiple Director IDs and/or providing false information regarding your identity.
Why the New Director ID?
The Director ID is intended to stop phoenixing in Australia by allowing directors to be traced across companies.
It is also poised to prevent the use of false identities being listed as a director.
For more information about the Director ID, contact us at Bambrick Legal today:
You can also read more about our Business and Commercial services here.
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