Apply for a myGovID by downloading the myGovID app to a smart device such as smart phone or tablet.
Clients will need to set up a myGovID to a standard or strong strength by providing personal details and the required identity documents.
The Government has reminded1 company directors that they need to apply for a director ID within a certain timeframe. This includes directors of SMSF corporate trustees.
A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with the Australian Business Registry Services (ABRS).
Background
All directors are required by law2 to apply for a director ID within the relevant timeframe (see below) or as directed by the Registrar (ABRS).
A director ID is a 15-digit identifier which starts with 0363 and ends with an 11-digit number and one 'check' digit for error detection.
Directors will be issued with one director ID in their lifetime which will follow them when they change companies, stop being a director, change their name or move interstate or overseas.
Once a director ID is issued, they will need to pass on their director ID to the record-holder in their company or Aboriginal and Torres Strait Islander corporation, which is usually the company secretary, another director, a contact person or an authorised agent of the company.
Purpose of Director ID
Director IDs aim to help4:
- Prevent the use of false or fraudulent director identities
- Make it easier for external administrators and regulators to trace directors' relationships with companies over time
- Identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.5
Directors must not apply for more than one director ID, nor misrepresent their director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation.
There may be civil or criminal penalties and a person may be issued with an infringement notice if they do not meet the above Director ID obligations.
Who needs to apply for a Director ID?
All eligible officers who are appointed as a director (or an alternate director acting in that capacity) under the Corporations Act 2001 and/or the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act) must apply for a director ID.
They include directors of a:
- company (including directors of corporate trustees for SMSFs)
- Aboriginal and Torres Strait Islander corporation
- charity or not-for-profit organisation that is a company registered with ASIC or Aboriginal and Torres Strait Islander corporation registered with CATSI
- registered Australian body, for example, an incorporated association that is registered with 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 they live).
The following parties are not required to apply for a director ID:
- company secretaries
- sole traders or partnerships
- people referred to as a 'director' in their job title but have not been appointed as a director under the Corporations Act or the CATSI Act
directors of a charity not registered with ASIC do not need to apply for a director ID.
When to apply?
Directors under the Corporations Act6 must apply for a Director ID before the following the dates7:
Date become a director
Must apply by
Date become a director
On or before 31 October 2021
Must apply by
30 November 2022
Date become a director
Between 1 November 2021 and 4 April 2022
Must apply by
Within 28 Days of appointment
Date become a director
From 5 April 2022
Must apply by
Before appointment
A person can complete an Application for an extension of time to apply for a director ID (NAT75390, PDF, 271KB) if they cannot apply by the above dates.
How to apply?
Directors can apply for a Director ID online, by phone or by completing a printed form.
Online
-
Step 1
-
Step 2
Apply for a director ID at abrs.gov.au/directorIDapply and select:
They will need to provide their tax file number (TFN) and residential address as held by the ATO when they set up a myGovID account. They also need information from two documents to verify their identity.
Examples include:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
- a PAYG payment summary.
-
Step 3
Complete a director ID application. Once successfully completed, a director ID will be instantly issued.
By phone
Directors can apply by phoning the ABRS on 13 62 50 (if in Australia) or +61 2 6216 3440 if overseas. They will also need their tax file number (TFN) and residential address as held by the ATO, as well as two Australian identity documents, one primary and one secondary8.
To verify their identity, they will need to answer two questions based on information from two documents.
Examples include:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink payment summary
- a PAYG payment summary.
Completing a paper form
Directors can fill in the Application for a director identification number (NAT75329, PDF, 306KB). They will need to provide certified copies of one primary and one secondary identity document.9 Identity requirements vary depending on whether the applicant is inside or outside Australia.
See https://www.abrs.gov.au/director-identification-number/apply-director-identification-number/verify-your-identity for more information.
FirstTech comment
The myGovID app is different from the myGov online account. Once a myGovID account is created and logged on, myGovID will allow access to a range of online government services, including myGov online.
The online application form in myGovID is the quickest way to obtain a director ID. Completing a paper application form is the slowest process and requires certified copies of identification documents to be mailed to the ABRS.
Endnotes
2. Part 9.1A Corporations Act 2001
3. 036 is the country could for Australia under International Standard ISO 3166
4. https://www.abrs.gov.au/director-identification-number/about-director-id
5. An illegal phoenix activity involves liquidating, winding up or abandoning an existing company to avoid paying its debts and establishing a new company with the same business activities.
6. To be a director under the Corporations Act, they must be an individual who is at least 18 years old and not be disqualified from managing corporations, unless permitted by ASIC or the Court. For more information on the Corporations Act, visit the ASIC website.
7. https://www.abrs.gov.au/director-identification-number/who-needs-apply-and-when
8. Primary Australian identity documents include an Australian full birth certificate, Australian passport, Australian citizenship certificate or extract from a Register of Citizenship by Descent, ImmiCard, or visa (if using a foreign passport but you are still in Australia). Secondary Australian identity documents include a Medicare card or Australian driver’s licence or learner’s permit.
9. For applicants within Australia, primary documents include: an Australian or foreign birth certificate or an Australian or foreign passport. Secondary documents include: a driver’s licence, a marriage certificate, national photo ID, a foreign government ID.
Identity documents that are not in English must be translated by an approved translation service and certified as a true and correct copy.
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Disclaimer
The information contained in this update is based on the understanding Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) and Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) has of the relevant Australian laws as at the article date. As these laws are subject to change you should refer to our website at www.cfs.com.au or talk to a professional adviser for the most up-to-date information. The information is for adviser use only and is not a substitute for investors seeking advice. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), no person, including AIL, nor CFSIL, accepts responsibility for any loss suffered by any person arising from reliance on this information. This update is not financial product advice and does not take into account any individual’s objectives, financial situation or needs. Any examples are for illustrative purposes only and actual risks and benefits will vary depending on each investor’s individual circumstances. You should form your own opinion and take your own legal, taxation and financial advice on the application of the information to your business and your clients.
Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.
AIL and CFSIL are also not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.