Modernising Business Register

Background

The Australian Government is implementing changes to consolidate multiple business registers as part of its ‘Digital Economy Strategy’. Director Identification Numbers is one of the first initiatives under the Australian Business Registry Services.

Role of IPA members

Director Identification requires you to prove who you are and so can only be applied for by the Director themselves. Assistance can be sought from an ASIC registered Agent or Trusted Advisor.

Once applied for there will be no further requirement to apply again and the Director Identification Number is unique and ‘for life’

Why Director Identification Numbers?

To assist with combating the use of false identities by Directors and to counter illegal phoenixing activity, the Australian Government introduced Director Identification Numbers from November 2021.

Who needs to register?

Directors and Alternate Directors of Australian companies, Aboriginal and Torres Strait Islander corporations, registered Australian bodies and foreign companies.

Sole Traders and Partners and company secretaries who are not directors do not need to apply.

Persons that are Directors of many companies will only need to register once

Deadlines

New directors have to move fast

Who? When?
Existing Directors (Corporations Act 2001) 30/11/2022
Existing Directors (CATSI Act 2006) 30/22-2023
New Directors – appointed 1-11-2021 to 4-4-2022 Have until 28 days after appointment
New Directors – appointed after 5-4-2022 Apply prior to appointment
New Directors (CATSI Act 2006) – appointed 1-11-2022 Apply prior to appointment

What do I need?

  • MYGOVID
  • Information that the Australian Taxation Office already holds (for instance, TFN)
  • Supporting documentation to verify your identity

Ways to apply

  • Online (recommended by ABRS)
  • Phone
  • Paper

How do I register/Steps

There are three steps to the application

Penalties

Failure to complete the application for a Director Identification Number by the time frame can result in criminal or civil penalties. Penalties will also apply for proven cases of providing false identity information or intentionally applying for multiple director identification numbers.

IPA Resources

Technical Advantage

Webinar

Held on 3 February 2022 Recorded version

Submission

The IPA made a submission to The Treasury