From November 2021 onwards, the Director ID regime will come into effect, primarily targeting the unlawful practise of ‘phoenixing’ while enhancing the responsibility and trackability of directors, benefiting various professionals, including accountants in Sydney. As part of this initiative, the Australian Taxation Office will establish a publicly accessible database to store Director ID numbers. This system aims to combat fraudulent activities and ensure greater transparency and accountability among directors.
Under the new regime, you will need a director identification number (director ID) if you’re a director or alternate director of an Australian or a registered foreign company.
A director ID is a unique identifier that directors must apply for once and keep forever. Directors must apply for their director ID themselves because they need to verify their identity. No one can apply on their behalf.
Under transitional rules, if you became a director on or before 31 October 2021, you must apply for a director ID by 30 November 2022. Those that become directors between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment. From 5 April 2022, directors must apply for their director ID before they are appointed a director.
The fastest way to receive your director ID is to apply online using myGovID. You’ll find instructions on how to set up your myGovID here. You don’t have to wait until November for this step. From November 2021, you can use your myGovID app to apply online for your director ID. Additional information you’ll need for your application can be found on the Australian Business Registry Services website.
Alternatively, you can apply by phone or on paper from November 2021. Detailed information on these processes is also set out on the ABRS website.
While we can’t apply for your director ID, we would be delighted to assist you with the process. Feel free to contact us if you need help.
Kreston Stanley Williamson Team
Author: Darren O’Malley
*Correct as of 26 October 2021
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.
