A new Federal Government regulation has been recently introduced that will need to be adhered to by anyone that is a director of an Australian company. This applies to ALL companies, whether they are trading companies, trustee companies (i.e. Companies that are trustees of a Self-Managed Super Fund or a Family Trust), private companies and public companies.
ALL directors will have to apply and receive a Director Identification Number.
A Director Identification Number (Director ID) is a unique identifier you need to apply for once and will keep forever. It will help prevent the use of false or fraudulent director identities.
According to the government:
All directors are required by law to verify their identity with us before receiving a Director ID. This is important because it will help to:
Illegal phoenix activity is when a company is liquidated, wound up or abandoned to avoid paying its debts. A new company is then started to continue the same business activities without the debt. When this happens:
Once you have your Director ID you will have this for life, much like you have your Tax File Number for life as well. Your Director ID will stay the same, even if you are a director of multiple companies.
While these were introduced on the 1st of November 2021, EXISTING directors have until 30th November 2022 to apply and receive the Director ID.
See dates for application below:
If you are a director, you will need to apply for this yourself, an accountant or a financial planner cannot do this for you.
How to Apply for a Director ID
Examples of the documents you can use to verify your identity include:
We are also going to go through the process, so we will be able to guide you on what to do once we have done this.
Alternatively, you can call the ABRS between 8.00am and 6.00pm Monday to Friday on 13 62 50 and they will be able to complete the application process over the phone with you. Please note you will need your ID on hand.
If you have any questions, please don’t hesitate to contact your accountant.