Company Directors will soon need to have a Director Identification Number (Director ID).
This is being introduced to reduce the possibility of Directors having multiple registrations under different combinations of their given name, date of birth and/or place of birth.
Every company in which a Director has been involved will appear on their Director ID.
The Director ID requirements apply to companies, incorporated associations and Aboriginal and Torres Strait Islander corporations.
Applying for a Director ID
As a Company Director, you will only need to apply for a Director ID once and you will only ever have one Director ID. The application process must be completed by the Director themselves, as it will need to verify their identity. A tax agent or representative cannot apply for the Director ID on behalf of a Company Director.
Prospective Directors will be able to apply for a Director ID up to 12 months prior to their appointment as a Director. The person must actually be appointed as a Director within those 12 months or their Director ID will be cancelled.
Timeframes for applying
If you are an existing Company Director, you will need to apply for a Director ID before 30 November 2022.
If you become a Company Director between 1 November 2021 and 4 April 2022, you will have 28 days from your appointment as a Director to apply for a Director ID. Persons appointed as a Company Director after 5 April 2022 will need to obtain a Director ID prior to their appointment as a Company Director.
Penalties for non-compliance
There are both civil and criminal penalties for Company Directors who fail to comply with the new scheme. The following conduct will attract such penalties:
- Failing to obtain a Director ID within the prescribed timeframe;
- Deliberately providing false identity information;
- Intentionally applying for multiple Director ID’s; and
- Intentionally providing a false Director ID.
We have a dedicated team of commercial lawyers who are experienced in providing advice to Company Directors. We also take this opportunity to remind you can download our free Business eGuide here. If you would like any assistance or advice on Director ID’s, please contact Matthew Coulter, Principal in our Commercial Law Division on 9525 8688 or email email@example.com.