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New ASIC requirements for company directors

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The federal government has recently announced the introduction of new requirements under the Modernising Business Registers program that will see all company directors needing to verify their identity. A director ID is a unique identifier that a director will need to apply for once and keep forever regardless of if they leave the position, change names or relocate states. This will help prevent the use of false or fraudulent director identities. A Company director is any individual who is appointed director of a company, a corporate trustee, a foreign company that is registered with ASIC and conducting business in Australia or with various registered bodies.

Applications

A director identification number (DIN) is provided to a director once their application is approved. Directors will be required by law to verify their identity before receiving their director ID.

The DIN consists of a unique 15-digit number, which starts with 036 (this is the 3-digit country code for Australia under International Standard ISO 3166) and ends with an 11-digit number and one ‘check’ digit for error detection.

When you must apply depends on when you were appointed as a director.

Existing directors have until 30 November 2022 to apply. Directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment. From 5 April 2022, intending directors must apply before being appointed.

Are there any changes to existing company notification requirements?

The director ID requirement does not change existing requirements to keep company records updated. For example, directors must still notify their company of changes in address or other details. The company will still need to notify ASIC of any changes for the public record.

Setting up your Director ID

Step 1 – Set up myGovID

  • You will need a myGovID with a standard or strong identity strength to apply for your director ID online.
  • If you live outside Australia and can’t get a myGovID with a Standard or Strong identity strength, you will need to apply with a written form and provide certified copies of your identity documents.

If you live in Australia and:

  • don’t have a myGovID, you can find information on how to create a myGov account here.
  • already have a myGovID, you can apply for your director ID now.

Step 2 – Gather and submit your documents

  • your residential address as held by the ATO
  • your tax file number (TFN)
  • information from two documents to verify your identity.

Examples of the documents that can be used:

  • an ATO notice of assessment
  • bank account details
  • a dividend statement
  • superannuation account details
  • a Centrelink payment summary
  • a PAYG payment summary (this is different from your income statement, and/or your PAYG instalment activity statement).

If making an application over the phone, simply dial The Australian Business Registry Service on 13 62 52. The same information will be required however in addition to this you will need to provide two primary and secondary Australian identity documents. A written application will require the same degree of information.

If you would like to talk to DD’s Taxation and Accounting about your Director ID, business tax, accounting, or bookkeeping, please call or email us today.

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