As of November 2021, the Australian Securities & Investments Commission (ASIC) has introduced a new ID requirement for business directors: the Director Identification Number (Director ID). Because this change is relevant to a number of our clients at BMR Business Solutions, we felt it was worth answering some of the most immediate questions that people will have about the Director ID.
What is the Director Identification Number?
The Director ID is a compulsory unique identifier for business directors. It is designed to help stop the use of false identities in this area. Once a person has applied for and received a Director ID, they will use it for all future (relevant) business dealings. They will never need to apply for another.
Who Exactly Requires a Director ID?
The Director ID is compulsory for all company directors, directors of registered Australian bodies, directors of registered foreign companies, and directors of Aboriginal and Torres Strait Islander corporations.
How Do You Apply for a Director ID?
Those requiring a Director ID must apply through the Australian Business Registry Services (ABRS). This can be done using the myGovID app. This page will step you through the process and explain what to do if you have a problem applying online.
Is There a Deadline for Director IDs?
Existing business directors have until the end of November 2022 to apply for their Director Identification Number. Anyone appointed as a director between November 1, 2021 and April 4, 2022 must apply for a Director ID within 28 days. After April 5, 2022, this timeframe will be further tightened, with relevant persons having to apply for a Director ID prior to being appointed as a business director.
Not applying for a Director ID when you are a current or future business director, is a criminal offence. See “What are the Related Offences and Penalties?” below.
Does the Director ID Change Anything Else?
As far as Australian government requirements regarding company records, the Director ID does not change or replace any previous obligations to notify ASIC, etc. It is an additional requirement on top of those.
What are the Related Offences and Penalties?
There are four main offences relating to the Director Identification Number. Failing to apply for a Director ID or failing to have a Director ID when required both come with a maximum penalty of $13,200 (criminal) and $1.1M (civil). Applying for multiple Director IDs or misrepresenting a Director ID both come with a maximum penalty of $26,640, 1 year’s imprisonment or both (criminal), and $1.1M (civil).
For More Info on or Assistance with the Director ID…
Based in the Brisbane suburb of Bridgeman Downs but also serving rural areas of west and northwest Queensland, BMR Business Solutions has been operating for nearly 20 years. A chartered accounting practice, we provide advisory services and much more to clients from individuals to small, medium and large business operations. You can contact our professional team by emailing email@example.com or phoning (07) 3353 7111 to arrange a consultation. We’re committed to helping you achieve your company goals.