KW Insights | Launch of Mandatory Director ID Registration
If you become a new director of a company, you will need a Directors ID...
Following a significant lead up period from the Federal Government, crucial changes are being made to help stamp out illegal phoenixing and other fraudulent activity by way of introducing the Director Identification Number (DIN). The DIN will enable the government to verify and track individual directors’ corporate history accurately, whilst protecting the security and privacy of Australian Directors.
From 1 November 2021, all directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a DIN. A DIN is a unique identifier that a director will apply for once and keep forever.
Directors must apply for their DIN themselves because they will need to verify their identity. No one can apply on their behalf.
It is vital to understand your new obligations under the regime, as failure to apply for a DIN within the required timeframe will leave current directors open to civil and criminal proceedings, as will intentionally applying for more than one DIN or providing a false DIN.
When do applications open?
Applications open 1 November 2021.
When to apply?
· Existing Directors (appointed before 31 October 2021) have until 30 November 2022 to apply.
· New Directors (appointed between 1 November and 4 April 2022) will need to apply within 28 days from their appointment as Director. From 5th April 2022, all new Directors will need to apply for their DIN prior to being appointed as a Director.
What do you need to do?
You need to apply for a MyGovID. This is not to be confused with your MyGov account. Once registration opens on 1 November, you will be able to apply for your DIN. You will need documents that verify your identity, such as your Tax File Number (TFN), your residential address, and two other documents that prove your identity (such as notice of assessment, dividend statement, Centrelink Payment Summary, PAYG Payment Summary, superannuation account details and bank account details). The process to complete your application should take less than 5 minutes.
For foreign corporations operating within Australia, the directors may not have access to the MyGovID platform, therefore, they will need to apply via a paper-based process.
There are very limited extensions for specific circumstances for new directors, charities and not-for-profits.
If you have any questions about the Director ID process, please visit the website or contact your King & Whittle Adviser.