The ATO has implemented a series of new updates and requirements regarding Director Identification Numbers that came into effect from 1 November 2021. If you’re the director of a company, SMSF or family trust, it‘s important that you take note of these changes to ensure compliance.
What is a Director ID?
A Director ID is a unique, 15-digit identifier that is used to verify a director’s identity. Directors will only ever need to apply for one digital ID. They will keep their Director ID even in the event that they:
- Leave the company they are a director within
- Step down from being a director
- Change their name/s
- Move either interstate or overseas
Who Needs a Director ID?
An individual requires a Director ID if they are appointed as a director, or an alternate director, of any of the following:
- A company, SMSF or trust
- A registered Australian body
- A registered foreign company
- An Aboriginal and Torres Strait Islander Corporation
Why Do Directors Need a Director ID?
A Director ID has many benefits apart from being able to verify a director’s identity. It also prevents the use of false and/or fraudulent director identities, and makes it easier to trace the relationships and roles a director has within companies over time. A Director ID can also be used to identify any director involvement in unlawful and illegal activities.
When Do Directors Need to Apply for a Director ID?
The date an individual is required to apply for a Director ID is dependent on when they become a director.
Corporations Act Directors
Catsi Act Directors
How Do You Apply for a Director ID?
The fastest way to apply for your Director ID is by using the myGovID app.
Step 1: Set Up Your myGovID Account
- Download the myGovID app (it’s important to note that myGovID is different to myGov)
- You will need to verify your identity with two of the following documents:
- Driver’s license or learner's permit
- Birth certificate
- Citizenship certificate
- Medicare card
- For further support on downloading the app and setting up your account, visit the myGovID website.
Step 2: Prepare All Necessary Documents
When applying for your Director ID, the ATO will require you to provide:
- Your Tax File Number (TFN)
- Residential address
You are also required to verify your identity with two of the following documents:
- Bank account details
- Super account information
- Centrelink or PAYG payment summaries
- ATO notice of assessment
- Dividend statement
Step 3: Finalise and Complete Your Application
Once you have verified your identity, and have created a myGovID, you can login and apply for your unique Director ID! The application should take less than 10 minutes. You can apply here.
What Happens If a Director Doesn’t Meet Their Director ID Obligations?
If a director does not meet their Director ID obligations:
- There may be criminal or civil penalties
- They may be issued with an infringement notice
For assistance in your application, visit the Australian Business Registry Services support page and feel free to reach out to your BlueRock accounting advisor with any questions.