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The new Director ID: Do you need one?

Categories: Small Business
3 November 2021

From 1 November 2021, if you are a Director or want to become one, you will need to apply for the new Director Identification Number (Director ID) being rolled out by the Federal Government.

Directors of businesses and entities of all sizes – including directors and corporate trustees of self-managed super funds (SMSFs) – will all need to apply. If you run your business as a sole trader or partnership, however, you won’t need a Director ID.

Director ID: What is It?

The new Director ID is a unique 15-digit identifier which applies to a director not to a company. For example, if you are a director of multiple companies, you only require one Director ID.

From 1 November 2021, you will need to apply for your own Director ID which you will keep forever, even if you incorporate new companies, stop being a director, change your name or move interstate or overseas.

This new identifier is part of a broader registry modernisation project combining the Australian Business Registry Service (ABRS) with numerous ASIC registers to form a single system overseen by the ATO.

According to the government, unique director identifiers will create a fairer business environment by preventing the use of false and fraudulent director identities.

Who needs a Director ID?

The new regime casts a pretty wide net and will catch most business entities and organisations.

Simply, you will need a Director ID if you are a director of a company in Australia, or a foreign company registered with ASIC and conducting business in Australia.

If your organisation has an Australian Business Number (ABN), you can use the ABRS LookUp tool to check whether it is registered with ASIC.

Important dates

If you are currently a Director, it is essential that you take action prior to 30 November 2022.

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We are urging all clients to take action as soon as possible and advise us of the issued Director ID.

Applying for your Director ID

From November 2021, you will need to apply for your Director ID on the ABRS website and log in using the myGovID app. The myGovID app is downloaded on your smart device to verify your digital identity and is different to your existing myGov account.

When applying for your Director ID, you are required to personally make the application so you can verify your identity.

Step 1: Set up your myGovID

Many clients may already have a myGovID. If you are unsure, then please proceed to set up your profile. (Note: This is different from a MyGov profile). Instructions to set up your myGovID are as follows on My Gov website: https://www.mygovid.gov.au/set-up

Step 2: Obtain Director Identification Number

Once you have a myGovID, you will be able to apply online for a Director Identification Number. The application can be made on the ABRS website: https://www.abrs.gov.au/director-identification-number

Once you receive your new Director ID, please provide Scott Partners with the details by emailing us on [email protected]

 

The ABRS is not permitted to disclose Director IDs to the public without consent and your details won’t be searchable on the register.

If you would like more information about Director IDs, please get in touch.

Please note, that due to the application requirements we cannot apply on your behalf.

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