1 million directors face $13k fine if they don’t get ID lodged

Already, 1.4 million directors have now applied for their director ID, but the total director population in Australia is estimated to be more than 2.5 million meaning there are nearly a million people who have not done so.

The deadline for application for a director ID is 30 November.

The director ID is a unique 15-digit identifier that is a requirement for all company directors. Company directors will apply for a director ID once and keep the number forever. It is administered by ABRS and managed by the Australian Taxation Office (ATO).

ABRS deputy registrar Karen Foat said all directors of companies, registered Australian bodies, and registered foreign companies must apply for a director ID — it is not optional. It’s free and available to directors within Australia and overseas.

Ms Foat reminded directors to sign up now to avoid penalties that may apply if they miss the 30 November requirement.

“Some people might not actually realise they are a director of a company. You don’t have to wear a suit or work in an office to be considered a director. If you run a small business, self-managed super fund, a not-for-profit or even a large sporting club, you may be a director, which means you’ll need a director ID,” she said.

The fastest way to apply is online at abrs.gov.au that will issue a director ID instantly once the application is complete. Nearly 90 per cent of directors who have applied so far have used the online service. Once issued, the director ID will need to be passed onto the record-holder of the company — this may be the company secretary, another director, or authorised agent.

Ms Foat said a registered tax agent cannot apply for a director ID on the behalf of their client.

“All company directors must apply for it themselves, as they are required to verify their identity themselves,” she said.

“This robust identification process will help prevent the use of false and fraudulent director identities.”

Ms Foat said that by applying for their director ID, directors are helping regulators create a fairer playing field for honest businesses.

Ms Foat clarified that while penalties can apply, the community can expect the ATO and ABRS will take a reasonable approach to support people to apply, particularly where directors have been impacted by circumstances like natural disasters.

Those who need to apply for a director ID include directors of a company,  charity, or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated, a foreign company registered with ASIC and carrying on business in Australia (regardless of where you live), and corporate trustee, for example, of a self-managed super fund.

Directors of corporations under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 or CATSI Act, have an additional 12 months to 30 November 2023 to apply for a director ID.

“If you’re not sure if you need to apply, information is available on the ARBS website or you can reach out to your registered tax agent for advice,” Ms Foat said.

There are three steps to apply for a director ID online:

• Install the myGovID app on your smart device and establish at least a “standard” or “strong” identity strength. The “standard” identity strength will be sufficient to complete the application.
• Prepare your documents to verify your identity with the ATO.
• Log in to abrs.gov.au/directorid to complete your application.