The new Director ID Register is here!!!

All Company Directors Now Need to have a Director ID.

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

The Australian Business Registry Services (ABRS) has now been set up and all directors must register for their individual director identification number (Director ID).

The director ID will be attached to a director permanently, even if they cease to be a director, change their name, or move interstate or overseas.  It is a director’s responsibility to make sure that all their details are up to date on this portal.

Why has the ABRS been set up?

The ABRS platform (see link above) has been set up to bring together the Australian Business Register (ABR) and the Australian Securities and Investments Commission (ASIC) registers into a single registry, in order to streamline how businesses, register, view and maintain their business information with the government.

Why do we need to have a register of Directors?

The aim of the ABRS is to help prevent illegal “phoenixing” by ensuring directors can be traced across companies, while also preventing the use of false or fictitious identities.  For example, where a new company with little or no value continues the business activity of a liquidated company where that liquidated company was closed to avoid paying its debts.

Applications for a Director ID are free. 

Who needs to apply?

Individuals will be required to hold a Director ID if they are a Director (or act as an Alternate Director) of a:

  • Company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act), or
  • Corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).

Applications for a Director ID are free.

How do you apply for your Director ID if you are based in Australia?

A director must make their own application.

To apply for a Director ID you must have a MyGovID account.  This is NOT the same as your MyGov account, but it is linked to help verify your identity.  Your identity strength will need to be set at Standard to Strong.

To set up your MyGovID install the MyGovID app on your phone.  You will need two of the following documents for your ID verification:-

  • Driver’s licence or learner’s permit
  • Passport
  • Birth certificate
  • Visa (using a foreign passport)
  • Citizenship certificate
  • Immicard
  • Medicare Card

Once the MyGovID has been set up you can then login and commence your application.

  • Once logged in you select “Where can I login?”
  • This will take you to the “Where to use it” screen and you just scroll down to you find the ABRS service to then apply.
  • You will need two ATO documents to complete your proof of ownership eg Notice of assessment, PAYG payment summary, dividend statements, Centrelink payment summary, bank account details, Superannuation account details (excluding SMSFs).

How do you apply for your Director ID if you are based Overseas or do not have a TFN?

https://www.abrs.gov.au/sites/default/files/2021-10/Application_for_a_director_identification_number.pdf

If you are an overseas director or do not have a TFN you can use the above link which is a paper generated form.  You will need to send the completed form along with two copies of certified ID to the address shown on the form.  Please note the details on who can certify your ID.

When do I you need to apply for a Director ID?

The rules for registration are:-

  • If you a director of a company as at 31 October 2021 you have until 30 November 2022 to apply for your Director ID
  • If you become a director of a company between 1 November 2021 and 4 April 2022 and you don’t have a Director ID, you have 28 days to apply
  • If you become a director of a company from 5 April 2022 you must apply for your Director ID before your appointment.

We expect ASIC will provide further guidance in late 2022 on the consequences of existing directors not having their ID before the cut-off date.

Under the law, directors who fail to apply for a director ID within the stipulated time frame can face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million. Directors of a CATSI organisation can face penalties of up to $200,000.

Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple director IDs.

If you have any queries please do not hesitate to contact John Kalachian or Henry Zhao at Fortis Accounting Partners.

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