Are you a director of a company? New Director ID system is about to commence

Posted on October 19, 2021 by - Business tax returns, Company tax, Individual tax returns, Taxation of the arts industries

With the implementation of the Director Identification Number (DIN) system now imminent, it is important to understand how this works.

The Director Identification Number (DIN) is a unique identifier that a director will keep indefinitely, much like a tax file number or an ABN. Arising from a growth in fraudulent activity during the pandemic, this new system enables the government to verify and track individual directors’ corporate history.

It is critical to understand your new obligations as a director, as failure to apply for a DIN within the required time frame will leave you open to criminal and civil penalties.

Applications open on 1 November 2021. We suggest that you sign up for your MyGovID now in preparation for the changes.

 

When do you need to apply?

It depends on the date you were appointed as a director:

  • Existing directors (appointed on or before 31 October 2021) will have until 30 November 2022 to apply for a DIN. They may apply from 1 November 2021.
  • New directors appointed between 1 November 2021 and 4 April 2022 will need to apply for their DIN within 28 days of their appointment.
  • New directors appointed on or after 5 April 2022 will need to apply for their DIN before they will be allowed to be accepted as a Director with ASIC.

Can we assist with the registration?

We cannot obtain the Director ID on your behalf as a director, you will need to action this yourself before the 30 November 2022 deadline.

We can provide the relevant documentation required for your application and assist you with setting up your MyGovID. Instructions to set up MyGovID: https://www.mygovid.gov.au/set-up.  Once you have created your MyGovID, you will be able to login into the ABRS.

For documentation including TFN, residential address as held by the ATO, notice of assessment, PAYG payment summary please contact Dat in our Hobart office. For help with MyGovID please contact Penny in our Melbourne office.

From November 2021

You will be able to login into the ABRS and complete a form to apply for a Director Identification Number. Please use the link below to access the ABRS to complete your online application for your Director Identification Number after November 2021.

ABRS Website: https://www.abrs.gov.au/director-identification-number

You will need the required documentation to verify your identity:

  • Your TFN
  • Your residential address as held by the ATO
  • Information from two documents to verify your identity.

Examples of the two documents you can use to verify your identity include:

  • Bank account details
  • An ATO notice of assessment
  • Super account details
  • A dividend statement
  • A Centrelink payment summary
  • PAYG payment summary.

Lodging by paper

To lodge by paper, in addition to the information requested on the form, you will need to provide certified copies of one primary and one secondary identity document. Do not send original documents as these will not be returned to you.

Primary Documents

  • Australian full birth certificate (extracts and commemorative certificates are not acceptable)
  • Australian passport (including passports that have expired in the past two years)
  • Australian citizenship certificate or extract from a Register of Citizenship by Descent
  • ImmiCard
  • Visa (if you are using a foreign passport but you are still in Australia).

Secondary Documents

  • Medicare card
  • Australian driver’s licence or learner’s permit. This must show your photo and signature, and the address on the card must match your details on the form.

A downloadable application form will be available on the ABRS website in November.

Lodging by phone

To apply by phone from November 2021, you will need:

  • An individual TFN. Providing your TFN is optional but it speeds up the process
  • Your residential address as held by the ATO
  • Answers to two questions
  • Two Australian identity documents – one primary and one secondary (see above)

What if I don’t apply?

If you don’t apply for a Director Identification Number during the required time-frame, there may be civil or criminal penalties and you may be issued with an infringement notice.

 

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