New and compulsory director identification number (director ID) – for all existing and future directors
From November 2021, directors need to verify their identity and obtain a director ID from the new Australian Business Registry Services (ABRS). The ABRS is a new service which brings together the Australian Business Register and other ASIC registers.
The purpose of the director ID is threefold (1) prevent false/fraudulent identities, (2) easier to trace directors’ relationships with companies, and (3) prevent unlawful behaviour such as illegal phoenix activity.
Applies to all company directors, including directors of trustee companies for trusts and SMSFs.
Applies to alternate directors who are acting in that capacity.
Existing directors who don’t comply will incur hefty penalties after twelve (12) months ie. 30 November 2022.
Directors appointed after 31 October 2021 have 28 days only to apply for the director ID.
Directors appointed on or after 5 April 2022 will need their director ID in place before appointment.
An individual applies for the director ID once. It is a unique number to use for any directorships the individual holds.
Directors must apply for the ID themselves as they need to have their identity verified.