Director IDs

As a result of the Treasury Laws Amendment Act 2020 being passed last year by the Australian government, all current and future company Directors will soon be required to apply for a Director ID. The aim of this is to centralise Australian Business Registers and to help prevent and remove ghost or phantom directors, as well as illegal phoenixing activity.

 

To clarify, you need a director ID if you are a director of a:

  • company
  • Aboriginal and Torres Strait Islander corporation
  • corporate trustee, for example, of a self-managed super fund
  • charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
  • registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated
  • foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).

 

However, you don't need a director ID if you are:

  • a company secretary but not a director
  • acting as an external administrator of a company
  • running a business as a sole trader or partnership
  • referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act
  • a director of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia
  • an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body.

 
When you need to apply:

 

 

 

How to apply for a Director ID:

 

Step one – Set up myGovID

This is an application that confirms and verifies your identity and can be downloaded on all Apple and Android phones. More information can be found here.

 

Step two – Gather your documents

You will need the following information ready:

  • Your Tax File Number (TFN)
  • Your residential address as held by the ATO (usually this is the address on your last lodged tax return)
  • Information from two documents to verify your identity, such as:
    • An ATO Notice of Assessment
    • Bank Account Details
    • A Dividend Statement
    • Super Account Details
    • PAYG Payment Summary

 

Step three – Complete your application

You will be able to apply for a Director ID only from November 2021, through the ABRS website here.

 

While we cannot complete the application for you, we are here to assist you if you are unsure of anything. Please contact your usual hmh advisor on +61 3 9840 2200 if you have any queries at all in relation to anything mentioned previously.