It’s Friday, and you know what that means. Yes, it’s another one of my long boring blogs. But this one requires you to do something!
Why am I spamming sharing really important info with you now?
The MBR Program
As part of its Digital Business Plan, the Australian Government announced the full implementation of the Modernising Business Registers (MBR) program. The aim of this program is to unify the Australian Business Register and the 31 registers administered by ASIC and established a new register service called the Australian Business Registry Services (ABRS). The ABRS is being administered by the ATO.
One important aspect of the MBR program is the introduction and adoption of Director Identification Numbers (known as Director IDs).
Director IDs
Director Identification Numbers are being introduced to deter and disrupt illegal phoenix activity, to prevent the appointment of fictitious Directors and inaccurate Directors names, and to ultimately tighten the company registration process to help avoid the appointment of Directors to companies without their knowledge or consent.
A Director ID is a unique 15 digit numerical identifier you need to apply for once and will keep forever. You must apply for your Director ID yourself, so the ATO can verify your identity. Unfortunately, no one can apply on your behalf including me as your Accountant and Registered Tax Agent, and ASIC Agent.
You will only ever have one (1) Director ID, regardless of how many companies you may be a Director of. You will keep the same Director ID even if you stop being a Director, become a Director of another company, change name, move interstate or move overseas.
If a Company has 2 (or more) Directors, then both/all directors will need to apply for their own individual Director Identification Number.
Director IDs do not apply to Company Secretaries, Sole Traders, Partnerships, Individual Trustees of Trusts, or officers of Associations established under State or Territory legislation.
Director IDs will initially be a private unsearchable number. Treasury’s position on the public use and visibility of Director ID numbers and Directors’ personal details is still being considered by Treasury and the ATO as they consider identity security issues of Directors’ personal information with the level of information available on publicly searchable registers.
When Do I Have To Do Something About This?
From 1 November 2021, if you want to become a Company Director, or already one, you’ll need a Director ID. However, when you must have a Director ID depends on the date you became a Director, per the table below:
| Date you became a Director | Date you must have a Director ID by |
|---|---|
| On or before 31 October 2021 | By 30 November 2022 |
| Between 1 November 2021 4 April 2022 | Within 28 days of becoming a Director |
| From 5 April 2022 | Before becoming a Director |
As a current Director of a company, you have until 30 November 2022 before requiring a Director ID. However, I recommend doing this not too long after the process opens on 1 November 2021.
If you become a Director of a new company (or be appointed as a new Director in an existing company) from 1 November 2021 onwards, you are required to have your Director ID within 28 days of this occurring.
How Do I Apply?
There are three ways to verify your identity and apply for a Director ID:
- Digital Application (preferred)
- Phone Application
- Paper Application
Digital Application Process
You are able to apply for your Director ID from 1 November 2021 using the Government’s new Australian Business Registry Services website. The ABRS advises a 3 step application process:
- Setup myGovID (which is different from a myGov login).
If you don’t have a myGovID, you can find information on how to set this up here: or get in touch for more information.
- Gather Documents
You will need to have some information the ATO knows about you when you apply for your Director ID, including your Tax File Number, residential addresses as held by the ATO, and information from two documents to verify your identity. Examples of documents you can use to verify your identity include:
- Bank account details
- An ATO Notice of Assessment
- Super Account details
- Dividend statement
- Centrelink payment summary
- PAYG Payment Summary
- Complete your Application
Once you have completed step 1 and 2 above, from 1 November 2021, you can log into the ABRS website, using your myGovID and apply for your Director ID. The ABRS advise the application process should take less than 5 minutes.
Need Help?
I intend on applying for my Director ID early in November, so will be able to help guide you through the application process if you get into any strife along the way.
Phone Application
As an alternative to the digital application, you are able to apply over the phone and answer questions regarding proof of identity documents.
Paper Application
As an alternative to the digital application, or the phone application, you are also able to apply for a Director ID using a PDF fillable form and provide certified proof of identity documents via mail to the ABRS.
The following people can certify copies of your original identity documents as true and correct:
- Barrister
- Solicitor
- Medical practitioner
- Judge
- Justice of the Peace (JP)
- Minister of religion (who is authorised to celebrate marriage)
- Police officer
- Bank, building society or credit union officer with at least five years of service
- Sheriff’s officer
- Commissioner of Declarations (in Queensland only).
What if I Don’t Get a Director Identification Number?
Civil or criminal penalties may be applied to Directors who do not comply with the Director ID requirements in the above timeframes, though the ATO has announced it ll initially take an educational focus.
Civil penalties of up to 5 000 penalty units ($1 110 000) can apply for failing to apply for a Director ID prior to appointment as a Director of a Company, or failing to apply for a Director ID if directed to do so by the registrar.
It’s November, and I’ve Now Got My Director ID. Now What?
Once you have completed your Director ID application and you have been issued with a Director ID, would you please reply to this email or in a new email, message, phone call, letter (or by sending a carrier pigeon or smoke signals) provide me with your Director ID number. My Corporate Secretarial software has released an update to incorporate the changes that Director IDs bring, to allow for the recording and storage of your Director ID in a secure environment.
As we get closer to 30 November 2022, I’ll take a more active, persistent approach to remind you of your Director ID obligations and to ensure I have your Director ID details recorded.
Additionally, once you have your Director ID, you can log in to ABRS online to view your Director ID or update your details whenever you need to.
You ll be able to:
- check your director ID number and status, including when it was issued
- view things to do, actions in progress and past activity
- edit your profile preferences and some of your personal details.
More Information
For more information about Director Identification Numbers you can visit the ABRS website.
If you have any questions about the application process, or Director IDs, please don’t hesitate to get in touch with me.
