It Depends – Director identification numbers

It Depends – Director identification numbers

14 March 2022 Topics: Corporate and commercial, Professional advisers, Tax and revenue, Family business, Middle market enterprises (MME)

In this edition of ‘It depends’, partner Clinton Jackson talks about director identification numbers. He covers when you need one, how to apply and what’s changed in establishing companies. For more information, read the full article.

VIDEO TRANSCRIPT

Welcome to this episode of It depends. Today we’re talking about director identification numbers.

How do I apply for a Director ID?

The easiest way to apply for a Director ID is online. It’s a relatively simple process. I’ve even managed to do it myself. All up, it will take you about 15 minutes. To apply online for your Director ID it’s actually a two step process. Firstly, you’ll need to apply for a MyGovID. Now, this is completely separate from your MyGov account or any online access you already have to that account. To apply for your MyGovID you’ll need to download the MyGovID app to your smartphone. Once you’ve downloaded this app, you’ll need to follow the step by step process to receive your MyGovID. To do this, you’ll need a personal email address and have some identity documents such as your passport, driver’s license, and Medicare card. Once you’ve completed this step, you’ll be able to move onto step two. Step two will require you to log in to the ABRS website to apply for your Director ID. To log on, you’ll need your new MyGovID. You will also then need to complete the step by step process using your tax file number, the residential address that the ATO has on file for you and some other information from two other documents that the ATO will know about you, such as your last notice of assessment. Once you’ve completed this process your Director ID will show on the screen. I suggest at this stage that you print this out and save it to your computer for future use. If you do not want to apply online, there are other options such as applying over the phone or filling out a paper form. However, these options will both take longer for you to receive your Director ID.

When do I need a Director ID?

It depends. The date that you need to apply for your Director ID will depend on when you last became a director of a company. If you last became a director of a company before 1 November 2021, you’ll have until 30 November 2022 to apply for your Director ID. However, if you became a director of a company between 1 November 2021 and 4 April 2022, you have to apply for your Director ID within 28 days of being appointed. If you are appointed as a director from 5 April 2022, you must have your Director ID before you can actually be appointed. It’s really critical that you get this right as it does come with substantial penalties if you do not have your Director ID by the required date. This can include a fine of up to $1.1 million.

What’s changed in establishing companies?

From 5 April 2022, the process for establishing companies is changing. Each person nominated as a director of a company who is not already a director of an existing company must have received their Director ID before a company can be incorporated. Therefore, to ensure this obligation is satisfied you should ensure that each person nominated as a director has already received their Director ID before submitting the company application form. From 5 April 2022, we will assume each person nominated as a director already has received their Director ID before submitting the application form to us and we’ll incorporate the company on that basis. If you’d like more information in relation to applying for a Director ID, please click the link with this video. If you’d also like more information about establishing companies, please contact a member of our team. Thank you for watching this episode of It depends.

Print

 

Contact Us

This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.