Last week the Treasury passed new legislation requiring Australian company directors to apply for a director identification number (Director ID). This legislation aims to prevent directors from illegally transferring assets between companies, ensure directors can be traced across companies and prevent the use of false identities. Any director who fails to apply for their Director ID faces fines of up to $1.11 million.
When must directors apply by?
Existing directors must apply for their director ID by 30 November 2022, and directors of Indigenous corporations have until 30 November 2023 to apply. New directors who are appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of appointment. Directors who are appointed from 5 April 2022 must have applied for their Director ID before being appointed.
How does a director apply?
Applications can be completed through the new Australian Business Registry Services site, which opens in November 2021. Applications are free and applicants are required to produce their MyGov ID and two additional identity documents, such as bank account and super account details.
