Company directors urged to apply for Director ID before November 30 deadline

Company directors who have yet to apply for their Director ID have been urged to do so now by the ATO, before the due date of November 30, 2022.

The mandatory Director IDs were introduced to prevent the use of false or fraudulent director identities, increase director accountability, and eliminate director involvement in unlawful activity.

What is a Director ID?

A Director ID is a 15-digit identification number that is unique to each individual person who is listed as director and identified themselves with the Australian Business Registry Services (ABRS).

The Director ID is applied to the individual, so if the director changes companies or stops being a director, the unique number will remain their identifier for life.

Who needs to apply?

If you are the director of a company, charity or not-for-profit organisation, a registered Australian body or registered foreign company or even an alternate director acting in a director’s capacity, you must apply for a new Director ID.

If you operate your business as a sole trader or partnership, you do not have to apply.

When do you need to apply?

The date you are required to apply for a new Director ID depends on when you were appointed as a director.

From November 1, 2022, directors must have their new ID before their appointment. Those appointed as a director on or before October 31, 2021, must apply by November 30, 2022. For any appointments made after April 5, 2022, directors must apply for the new Director ID before they are officially appointed.

Current directors of Aboriginal and Torres Strait Islander corporations have an additional 12 months to apply for the new ID. Those appointed on or before October 31, 2022, must apply by November 30, 2023.

What happens if I don’t get an ID in time?

Company directors face significant criminal and civil penalties if they fail to obtain a director ID, or fail to apply for one when directed to do so by the registrar. The maximum criminal penalty in these cases is $13,200 and the maximum civil penalty is $1.1 million.

Directors also face criminal penalties of up to $26,640, or one year imprisonment, and civil penalties of up to $1.1 million, if they apply for multiple Director IDs or misrepresent their Director ID.

How to apply

Please click the link below to register today.

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

As always, if you need any help please contact us.