All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation (ATSI) will need a director ID. This includes directors of a corporate trustee of a self-managed super fund (SMSF).

The deadline for existing directors of Australian companies to obtain a Director Identification Number is 30 November 2022.

A director ID is a 15 digit identification number that, once issued, will remain with that director for life regardless of whether they stop being a director, change companies, change their name, or move overseas.

Director IDs will help prevent the use of fake identities and make it easier for regulators to keep track of Directors and companies over time. Director IDs have also been introduced in order to identify directors involvement with unlawful activities, for example, phoenixing of companies.

Illegal phoenix activities is when a company is liquidated in order to avoid paying it's debts and then a new company is started which continues the same business activities, often using the same products, clients and staff.

For those who have been a director since 31 October 2021, the deadline for obtaining a director ID is 30 November 2022 unless you are a director of an Aboriginal and Torres Strait Islander corporation, then the deadline is 30 November 2023.

For overseas directors, the process to obtain a director ID can be onerous as applications cannot be made online. In addition to the paper application form, you will need copies of one primary and one secondary identity document (or primary identity documents) certified by notaries public or at an Australian embassy.

For those who have become a director after 5 April 2022, or invited to become a director but are not a director as yet, if you do not have a director ID, you will need to apply for one prior to being appointed.

You do not need a director ID if you are running a business as a sole trader or partnership, or you are a director in your job title but have not been appointed as a director under the Corporations Act or Corporations (Aboriginal and Torres Strait Islander) Act (CATSI).

Directors will need to apply for an ID themselves through the Australian Business Register system through their MyGovID account. There is no cost to apply for a Directors ID.

Need an extension?

If you need an extension, as soon as possible contact the Australian Business Registry service on 13 62 50 (+61 2 6216 3440 outside of Australia). Your identity will need to be established so have your documentation ready. You can also apply for an extension using the paper form.

What happens if I don’t obtain an ID?

If you are required to obtain a director ID but don’t, a criminal penalty of up to $13,200 might apply or a civil penalty of up to $1,100,000. Where an individual has deliberately applied for multiple IDs or misrepresented the director ID, the criminal penalty escalates to $26,640 and up to one year in prison.

If you are unsure about your need to apply for a Director ID or would like to discuss your business structure contact our experienced business advisors today.