Australian Director ID now mandatory; Everything you need to know about it!

As a part of the Australian government initiative, the directors of registered businesses will now have an Australian Director ID. This ID will be made mandatory to obtain by the directors of businesses.

Australian Director ID is a 15-digit number that will serve as an identification number for the directors of different businesses. This number will be allocated to each of the directors for life. The idea behind introducing it is to deter the illegal phoenix activity. It will also help validate different business practices by the directors and curb the fraudulent persons posing as directors.

Jane Hume, Minister for Superannuation, Financial Services and Digital Economy, stated:

“Director ID will help to create a fairer business environment by improving data integrity, creating greater confidence in directors’ identities, and allowing earlier identification of director involvement in unlawful practices, such as illegal phoenix activity,”

Who is applicable for it?

You need to apply for a director ID if you are a director of one of the following:

• A company
• A corporate trustee
• A charity or non-profit organization
• A registered Australian body
• A foreign company registered with Australian Securities and Investments Commission (ASIC).
• Aboriginal and Torres Strait Islander corporation

How to get your Director ID?

You can apply for the director ID online through myGovID app. You will first have to register to have a myGovID.

1. Go to myGovID app and log on to the Australian Business Registry Services. Those who live outside Australia and do not have access to myGovID app can apply through the paper application with complete certified documents.
2. Once you have logged in, you need to have the following documents:

• Tax file number (TFN)
• Residential address (same that you used with ATO)
• Two certified documents information that can validate your identity (such as bank account details, super account details, dividend statement, notice of statement by ATO, PAYG payment summary, and Centrelink payment summary)

3. Once you have completed all the requirements, you will get your myGovID. Using that, complete your Director ID.

Dates to remember

• The existing directors ought to apply at their earliest.
• For new/future directors, the identification number should be obtained within 28 days of starting as a director. This is applicable until April 22, 2022 as for the current policy.

So, if you are serving as a director for one of the aforementioned entities, apply right away.