08 Nov Preparing for the new Director ID regime
As part of its Digital Business Plan, the Government announced the full implementation of the ‘Modernising Business Registers’ program.
This included recently enacted legislation introducing the new director identification number (‘director ID’) regime.
The director ID is a unique identifier that a director will need to apply for once and will keep forever.
The introduction of director IDs is intended to create a fairer business environment by helping prevent the use of false and fraudulent director identities, which “will go a long way to better identifying and eliminating director involvement in unlawful activity”.
Note that all directors will need to apply for a director ID, including directors of corporate trustees of self-managed super funds (‘SMSFs’) and of family trusts.
Individuals will be able to apply for a director ID from 1 November 2021 on the new Australian Business Registry Services (‘ABRS’) website (at abrs.gov.au) and will need to log in using the myGovID app (set to a ‘Standard’ or ‘Strong’ identity strength).
When an individual must apply for a director ID depends on the date they became a director. For directors under the Corporations Act:
• who became a director on or before 31 October 2021, they must apply for a director ID by 30 November 2022;
• who become a director between 1 November 2021 and 4 April 2022, they must apply for a director ID within 28 days of appointment; and
• who become a director from 5 April 2022, they must apply for a director ID before their appointment.
Individuals will need to apply for their director ID themselves to verify their identity (i.e., no one can apply for it on their behalf, including agents).