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.
- See the Australian Business Registry Services website for more information: https://www.abrs.gov.au/director-identification-number