New director ID requirement ASIC Update for ASIC Registered Agents
We are letting you know about the director identification number (director ID) requirement that is now available on the new Australian Business Registry Services (ABRS) website. ABRS is a new service, managed by the Australian Taxation Office, that will streamline how you register, view and maintain your business information with government. It is part of the Modernising Business Registers (MBR) program and the first service to be delivered. A director ID is a unique identifier a director applies for once and keeps forever. It will help prevent the use of false or fraudulent director identities. A person will keep their director ID even if they stop being a company director, change their name or move interstate or overseas. It confirms a director’s identity and will in the future show which companies they’re linked to. If your clients are planning on becoming a director or are already a director, they will need to apply for a director ID. You can’t apply on their behalf as the Registrar needs to verify their identity.
When to apply:
The dates for when your clients need to apply, depends on when they become a director.
The first key date is for clients who become a director between 1 November 2021 and 4 April 2022. They need to apply within 28 days from their appointment.
If your clients were a director before 1 November 2021, they need to apply before 30 November 2022. If you are registering a company or appointing a director for your client, as part of your checks, you can advise them to apply for a director ID up to 12 months before their appointment. For a full list of key dates, including directors of Aboriginal and Torres Strait Islander corporations, see Who needs to apply and when.
What you can do:
As a trusted adviser, you can help your clients understand the new requirement and what they will need to apply. It’s free to apply and the fastest way to apply is online. The ABRS has other options available for those who can’t apply online. See Apply for your director ID .
Your clients will need a myGovID with a Standard or Strong identity strength to apply for a director ID online. If they don’t have the myGovID app they can set it up at www.mygovid.gov.au/setup.
They will also need to verify information held on their ATO record, such as a Notice of assessment. They may need your assistance with finding this information. Once they have this information, the online application is intuitive and takes less than 5 minutes. They will get their director ID instantly.
They then need to give their director ID to the company secretary and their tax or ASIC agent.
These two videos can also assist with what is needed. Introduction to director ID for trusted advisers and Director ID overview for your clients.
From 5 April 2022 all directors will need a director ID before they are appointed. We suggest you make this part of your checks when registering a company or appointing a director for your clients.
To find out more about the ABRS, its role in administering delegated ASIC Registry functions and director ID visit abrs.gov.au/about-us.
