November 10, 2021
Plan for the Future

Director IDs are now an ATO requirement

The Australian Tax Office has introduced Director Identification Numbers (Director IDs or DINs), which are being managed through the Australian Business Registry Services (ABRS) as of 1 November 2021.

What is a Director Identification  Number?

The Director Identification Number is  a 15 digit unique identifier that will help prevent the use of false or  fraudulent director identities with the new registry services of the  ABRS. This will make it easier to trace director relationships across  companies and help identify and eliminate involvement in illegal activity  such as illegal phoenix activity.

 

What you need to do as of 1 November  2021? 

Individuals who are currently a  director or will be acting as a director in the future must apply for a  Director ID based on the transitional arrangements specified in the table  below:
 
 
How do individuals apply online for a  Director ID?

     
  1. Go to the ABRS website to access the ABRS Director ID service and learn about the Director ID requirements
  2.  
  3. Verify your identity using your myGovID credentials or create a myGovID using your smartphone and Australian identity documents. For more information visit: How to set up myGovID.
  4.  
  5. Conduct a proof of record ownership by answering two questions about the individual's ATO record. See below for further information.
  6.  
  7. Complete a Director ID application on the ABRS platform to receive the Director ID instantly.
  8.  

Frequently Asked Questions

Question: What is the Australian Business Registry Services (ABRS)? 

Answer: The Australian Business Registry Services is an ATO governing department established 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.

The ABRS will also introduce and maintain the Director Identification Numbers.

 

Question: What isa Director Identification Number (Director ID)? 

Answer: The Director Identification Number is a 15 digit unique identifier that will help prevent the use of false or fraudulent director identities with the new registry services of the ABRS. This will make it easier to trace Director's relationships with companies, identify and eliminate their involvement in illegal activities such as illegal phoenix activity.

All Directors will be required under the law to apply for a Director ID. 

A Director ID will only be given to an individual who has verified their identity with the registrar of the ABRS.

An individual will only need to apply for a Director ID once and will keep it forever even if they change companies, stop being a Director, change their name or move interstate or overseas.

Individuals will need to apply for their own Director ID. Agents or advisors cannot apply for a Director ID on behalf of a client.

 

Question: Who needs a Director ID?

Answer: 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).

Individuals who intend to become a Director within 12 months may also apply for a Director ID.

 

Question: What two Australian identity documents can be used to register for a myGovID?

Answer: Identity documents that can be used for verification:

  • Drivers License or learners permit
  • Passport
  • Birth certificate
  • Visa (using a foreign passport)
  • Citizenship certificate
  • ImmiCard
  • Medicare Card

 

Question: What two ATO documents can be used to complete the proof of record ownership?

Answer: ATO records that can be used for verification:

  • Notice of assessment
  • PAYG payment summary
  • Dividend statements
  • Centrelink payment summary
  • Bank account details
  • Superannuation account details (note this does not include SMSFs

Question: How will the Director ID's affect the lodgement of ASIC forms via Corporate Messenger?

Answer: ASIC has not updated any of their ASIC forms which are lodged via their Edge system. Accordingly, the Director ID will not be required to be input into any current ASIC forms, where directors’ details are required.

However, ASIC will be providing further guidance in late 2022-23 in relation to the changes to their forms. 

Go to the ATO website for further info.

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