All Directors of Australian companies will now need to verify their identity as part of a new Director ID (DIN) requirement. A Director ID is a unique identifier that a director will only need to apply for once, with applications open from November 2021 via the Australian Business Registry Services (ABRS) website. Directors will keep the same DIN regardless of whether they become a director of another company, cease to be a director, change their name or move interstate/overseas.
What is a Director ID?
A Director ID is a 15-digit identifier given to a director, or someone who intends to become a director, who has verified their identity with the Australian Business Registry Services. This will be used to trace relationships to companies over time.
Directors need to apply for their own ID and they will only ever have one, which they will keep forever.
Who is required to apply for a Director ID?
A person must apply for a DIN if they are an eligible officer of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001; and/or
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
An eligible officer is a person who is appointed as (or will be appointed as come November 2021):
- a director; or
- an alternate director who is acting in that capacity.
How to apply for a Director ID?
Step 1: Set up a myGovID (if you don’t already have one)
You will need a ‘standard’ or ‘strong’ identity strength myGovID to apply for your Director ID online. To get started, click here for information on how to download the app.
Step 2: Collate personal identification documents
You will need to supply some personal information when you apply for your Director ID, such as:
- Individual Tax File Number (optional)
- Residential address (as recorded with the ATO)
- Answers to two questions, where details are known by the ATO, such as:
- Bank account details
- An ATO notice of assessment
- Super account details
- A dividend statement
- A Centrelink payment summary
- PAYG payment summary.
Step 3: Complete your application
Once you have completed step 1 and 2, you can go to the ABRS website and apply for your Director ID. The application process should take you less than five minutes to complete.
If you can’t get a myGovID, you can apply using alternative methods such as:
- By phone if you have an Australian Tax File Number; or
- By completing a paper form and providing certified (translated) copies of your documents to verify your identification.
Further details about the application process can be found on the ABRS website here.
When do you need to apply?
The date you will need to apply for a DIN will vary depending on when you became a director.
| Date of becoming a director | Date DIN application must be submitted |
| On or before 31 October 2021 | By 30 November 2022 |
| Between 1 November 2021 and 4 April 2022 | Within 28 days of appointment |
| On or after 5 April 2022 | Before appointment |
When will you need to use your Director ID?
You will need to provide your Director ID to the corporation’s record-holder, which can be the company secretary, another director or an authorised agent of the company. If DPM is the registered agent for any companies of which you are a director, please provide your DIN to us so we can update our records.
If appointed as a director of other companies in the future, you will need to provide your ID number to the people responsible for maintaining the records of those companies as well.
Directors must also inform the Registrar of any changes to the information attached to their DIN.
What happens if directors fail to comply?
Failing to hold a Director ID may result in an infringement notice or possible civil and/or criminal prosecution.
Additional compliance breaches include if a director:
- Fails to comply with a direction from the Registrar
- Applies for multiple Director ID’s
- Provides a false ID
- Misrepresents their ID
- Provides false or misleading information.
To find out more about Director ID’s or to discuss whether you need to apply for one, get in touch with your DPM Tax Consultant or request a no-obligation initial consultation here.
Disclaimer: * The information contained in this site is general and is not intended to serve as advice as your personal circumstances have not been considered. DPM Financial Services Group recommends you obtain personal advice concerning specific matters before making a decision.
