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, move overseas or win tattslotto.
The introduction of the Director Identification Number (DIN) is part of the Federal Government’s Modernisation of Business Registers (MBR) Program designed to create greater transparency and prevent the potential for fraud and phoenix company activities.
To alleviate privacy concerns (some may recall Bob Hawke’s infamous attempt to introduce an Australian Card, a few decades ago), the director ID is not searchable by the public and cannot be disclosed without the consent of the Director.
Who needs a director ID?
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All directors of a company
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Directors of Registered Australian bodies
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Directors of a registered foreign company, or Aboriginal and Torres Strait Islander corporation
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Directors of a corporate trustee of self-managed super funds (SMSF).
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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).
It is important to note the director IDs are governed by the same privacy rules that apply to Tax File Numbers (TFNs) and should not be disclosed unless absolutely required.
When do you need to register?
When you must apply depends on when you were appointed as a director:
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Existing directors have until 30 November 2022 to apply;
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New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
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From 5 April 2022, intending directors must apply before being appointed.
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If the company intends to appoint new directors, it will be important to ensure that they are aware of the requirements and timeframes to establish their director ID if they do not already have one.
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