If you’re a director of a company, this is something you must read as these new changes directly impact you.
From November 2021, the government will be introducing a Director ID, and will require directors to verify their identity as a part of these new requirements.
The Director ID is a unique identified that a director will apply and receive and keep forever. This applies to directors if their organisation is a company, registered foreign company, registered Australian body or Aboriginal and Torres Strait Islander corporation.
Directors must apply for their Director ID themselves because they will need to verify their identity. No one can apply on their behalf.
Who needs a Director ID
You need a Director ID if you’re a director of a:
- Aboriginal and Torres Strait Islander corporation
- corporate trustee, for example, of a self-managed super fund
- charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
- registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated
- foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).
Why you need a Director ID
Stakeholders are entitled to know the names and certain details of the directors of a company. The introduction of the Director ID will support:
- preventing the use of false or fraudulent director identities
- making it easier for external administrators and regulators to trace a directors’ relationship with companies over time
- identifying and eliminating director involvement in unlawful activity such as phoenix activity.
When to apply
Date Of Directorship
Date you must apply
On or before 31 October 2021
By 30 November 2022
Between 1 November 2021 – 4 April 2022
Within 28 days from appointment
From 5 April 2022
How to Apply for your Director ID
- Setup myGovID
- Gather your Documents
- residential address held by the ATO
- Information from 2 documents, including:
- Bank Account Details
- ATO Notice of Assessment
- Super Account Details
- Dividend Statement
- Centrelink Payment Summary
- PAYG Payment Summary
If you cannot get a myGovID, you may be able to apply via the phone or a paper form.