Due to recent legislation changes, company directors need to obtain a director identification number (director ID) to prevent fraudulent activity and to help curb illegal phoenixing activity.
ASIC definition of Illegal Phoenixing Activity
Under the new laws, directors appointed on or before 31 October 2021 have until 30 November 2022 to apply, however, directors are encouraged to submit an application for their own director ID via the ABRS website at their earliest convenience after applications open in November 2021.
Director IDs will tighten the process for the registration of directors and help avoid the appointment of directors to companies without their knowledge or consent.
The director ID will be a unique identifier that a director will keep forever, enabling regulators to better track directors of failed companies who use fictitious identities.
How to Apply
Before you can apply for director ID, you will need myGovID set up first. Importantly, myGovID is different to myGov; myGovID is an app whereas myGov is an account.
Directors must apply for their director ID themselves because they need to verify their identity. No one can apply on their behalf. The fastest way to do this is to apply online.
You will need to have some information the ATO knows about you when you apply for your director ID, including:
- your tax file number (TFN)
- your residential address as held by the ATO
- information from two documents to verify your identity.
Examples of the documents you can use to verify your identity include:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
- PAYG payment summary
To complete your director ID application, you can log in to the Australian Business Registry Services (ABRS). If you cannot get a myGovID account, you may apply by phone or by using a paper form.
Unfortunately, this task cannot be done by our office, but we can assist with any issues that may arise in the process of obtaining your director ID.
Should you require any further information in relation to applying for a director ID please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.