If you're a director of an Australian company-or you plan to be-take 5 minutes now to read this article.
All existing directors (and intending directors) of Australian companies need to be aware that the Australian Government has announced the introduction of a new mandatory Director Identification Number (DIN) system. (You'll notice the term director ID is also used for DIN.)
This system is the initial step in the Modernising Business Registry (MBR) Program which has been established under the Treasury Laws Amendment Act which was legislated by the Australian Government in 2020.
More information on the MBR program can be found here.
The DIN aims to provide accountability and traceability of a director's relationships over time, across all companies and will provide information on a director's involvement in what may be repeated unlawful activity, including illegal phoenix activity.
It should also solve the problem of false or fraudulent director identities.
Directors have 3 options for applying.
You can apply online from 1 November 2021. To use this method, you must first establish your identity via myGovID (an app you download on your smart device which is different from myGov).
Once set up, your myGovID will make accessing a wide range of government services easier. (It's not just for your DIN application).
For information on how to set up a myGovID please go to https://www.mygovid.gov.au/set-up
During the DIN application process, you will need additional information such as your tax file number (TFN) and your residential address as per ATO records. It would also be advisable to have other personal details such as bank account details, medicare card or a recent income tax assessment available in case these are required.
You can also apply by phone (13 62 50).
During the call, the operator will ask for the identity documents you would have used to obtain your myGovID (passport and driver licence) as well as the additional information listed above.
These details will be confirmed with the records held on existing government databases and, assuming the details agree, your DIN will be issued.
Or you can apply by mail, but this is not recommended because the process for doing this seems vague ("Write to us") which means you can probably expect a lengthy process of certifying documents and coping with the vagaries of the postal system.
One of the other two methods would be a better choice.
Transitional arrangements will allow directors to become familiar with the new requirement. When you need to have a director ID will depend on when you were appointed as a director.
Corporations Act 2001 (Corporations Act)
Appointment of directors
Existing directors appointment on or before 31 October 2021
New directors appointment between 1 November 2021 to 4 April 2022 (inclusive)
New directors appointed from 5 April 2022
When they need to apply
By 30 November 2022
Within 28 days of appointment
Before appointment
Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
Appointment of directors
Existing directors appointed on or before 31 October 2022
New directors appointed after 1 November 2022
When they need to apply
By 30 November 2023
Must apply before appointment
However, the process of applying is simple and this is one task that does not need to sit on your To Do list until the last minute (and possibly missing the deadline). We recommend you apply now.
For now there will be no change to how a company is registered, therefore there is currently no requirement for you to include the director's ID number on your company application or company change of details form (484, etc).
However, directors are required to provide their DIN to all Australian companies they are directors of and each company is required to store that information securely to preserve the privacy of the director.
Naturally, we will keep you informed of any further developments with the use of DINs or the MBR Program generally.
While we can't complete your DIN application for you, we are happy to help with any questions you may have regarding the application process. Just get in touch.
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