New Requirement for Directors

From 1 November 2021, directors of Australian corporations will be required to be registered under the Australian Business Registry Services (ABRS) Department with a Director Identification Number (DIN).

If you want to become a director or are already one, you’ll need a director ID. When you need to apply depends on the date you become a director.

In June 2020, the Australian Government introduced the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth). Part of the measures in this legislation introduced a new regime to Part 9.1A of the Corporations Act 2001 (Cth), which requires all company directors, or anyone who intends to become a director, to obtain a Director Identification Number (DIN).

A DIN is a unique 15-digit identifier given to a director, or someone who intends to become a director that, once issued, will be kept by the individual permanently.

You should give your director ID to your agent and the person responsible for managing your company’s records to keep on file.

When to apply?

If a person became a director or an alternate director of a company or other registered Australian body (such as an incorporated association registered with ASIC and which trades outside of the state of registration or a foreign company registered with ASIC) which is governed by the Corporations Act 2001 (Cth):

Date of appointmentDate for DIN application
On or before 31 October 2021By 30 November 2022
Between 1 November 2021 and 4 April 2022Within 28 days of appointment
From 5 April 2022Before appointment

How to apply?

Australian Resident Directors

For Australian resident directors, the fastest way to obtain a DIN is to apply online on the ABRS website from 1 November 2021.

This will require a myGovID account (which is different from a standard myGov account). myGovID is an app you download to a smart device that allows you to prove who you are and log in to a range of government online services, including myGov.

Foreign Resident Directors

Foreign resident directors will also have to obtain DINs within the same timeframes. Foreign resident directors who have Australian documentation may still be able to apply as per the above options.

Both, Australian and Foreign residents also have the option to apply via a paper application which is available through the ABRS website.

What’s the purpose?

The DIN is the first service to be delivered by ABRS and aims to create a single source of trusted and accessible business data in order to:

  • prevent the use of false or fraudulent director identities;
  • make it easier for external administrators and regulators to trace directors’ relationships with companies over time; and
  • identify and eliminate director involvement in unlawful activity such as phoenixing activities.

If you need any assistance in the process please don’t hesitate to contact your accountant.

The information in this article contains general advice and is provided by Primestock Wealth Management Pty Ltd (Primestock Wealth) AFSL No. 240277. This advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs.

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