All About Director IDs
Legislation was introduced over 12 months ago requiring a director to verify their identity and receive a director identification number (director ID).
A director ID is a 15-digit number given to a director (or someone who intends to become a director) who has verified their identity with Australian Business Registry Services. Directors will only ever have one director ID. They will keep it forever even if they change companies, stop being a director, change their name, or move interstate or overseas.
The director ID regime is intended to combat illegal phoenix activity, which occurs when a new company continues the business of an existing company that has been liquidated or abandoned to avoid paying outstanding debts - such as – taxes, creditors and employer entitlements.
Act Now
You need a director ID if you are a director or alternate director of a company, registered Australian body, or registered foreign company under the Corporations Act 2001.
When a director must apply for a director ID depends on the date you first become a director.
|
Date you first become a director |
Date you must apply |
|
On or before 31 October 2021 |
By 30 November 2022 |
|
Between 1 November 2021 and 4 April 2022 |
Within 28 days of appointment |
|
From 5 April 2022 |
Before appointment |
Offences and Penalties
It is an offence to not apply for a director ID on time. This is a strict liability offence, which means it is not necessary for the regulator or prosecutor to establish intention to commit the offence.
A criminal penalty of $13,320 applies. A court can make a declaration for a civil penalty of up to $1.11m.
How to Apply
If you need a director ID, you can apply by visiting the Australian Business Registry Services (ABRS) website.
The ABRS website contains helpful information about applying for a director ID and the documents you will require to verify your identity.