Australian directors urged to apply for ID before looming deadline

More than 1.4 million directors have applied for their director ID - but with the total director population in Australia estimated to be more than 2.5 million, around one million directors still need to apply.

As the 30 November deadline is now only days away, Australian Business Registry Services (ABRS) is urging directors not to leave it to the last minute to apply.

The director ID is a unique 15-digit identifier that is a requirement for all company directors. Company directors will apply for a director ID once and keep the number forever. It is administered by ABRS, managed by the Australian Taxation Office (ATO).

On November 21, a record 28,426 directors applied for their director ID. Most of these directors applied on the ABRS website using their myGovID, meaning their new number issued straight away.

As 30 November is the deadline for most directors to apply, ABRS Deputy Registrar Karen Foat (pictured) said the ABRS was glad to see such strong application numbers. “With that 30 November deadline coming up fast, we’re really pleased that so many directors are getting their director ID, and we encourage all other directors to follow suit,” she said.

All directors of companies, registered Australian bodies and registered foreign companies must apply for a director ID – it is not optional. It’s free and available to directors within Australia and overseas.

Ms Foat reminded directors to sign up now to avoid penalties that may apply if they miss the 30 November requirement.

“Some people might not actually realise they are a director of a company. You don’t have to wear a suit or work in an office to be considered a director. If you run a small business, self-managed super fund, a not-for-profit or even a large sporting club, you may be a director, which means you’ll need a director ID.”

The fastest way to apply is online at abrs.gov.au, which will issue a director ID instantly once the application is complete. Nearly 90% of directors who have applied so far have used the online service. Once issued, the director ID will need to be passed onto the record-holder of the company - this may be the company secretary, another director, or authorised agent.

Ms Foat said: “There’s a common myth floating around that if you’ve got a registered tax agent, they can just apply for a director ID on your behalf, but that’s not true. All company directors must apply for it themselves, as they are required to verify their identity themselves. This robust identification process will help prevent the use of false and fraudulent director identities.”

Ms Foat said that by applying for their director ID, directors are helping regulators create a fairer playing field for honest businesses.

“Director ID helps the government to take action against illegal activity, for example a practice called phoenix activity. This is really dodgy behaviour and it’s where business owners illegally shut down their company and transfer assets into a new company to avoid paying what they owe to employees and suppliers. By applying for a director ID, you’re helping to protect the community from those doing the wrong thing,” she said.

Ms Foat said that whilst penalties can apply, the community can expect we will take a reasonable approach to support people to apply, particularly where directors have been impacted by circumstances like natural disasters.

You need to apply for a director ID if you're a director of a:

Company
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)
Corporate trustee, for example, of a self-managed super fund.

Directors of corporations under under the Corporations (Aboriginal and Torres Strait Islander) Act 2006, or CATSI Act, have an additional 12 months to 30 November 2023 to apply for a director ID.

“If you’re not sure if you need to apply, information is available on the ARBS website or you can reach out to your registered tax agent for advice.” Ms Foat said.

There are three steps to apply for a director ID online:

Install the myGovID app on your smart device and establish at least a “standard” or “strong” identity strength. The “standard” identity strength will be sufficient to complete the application.
Prepare your documents to verify your identity with the ATO.
Log in to abrs.gov.au/directorid to complete your application.

For a breakdown of these steps, directors can watch a video at abrs.gov.au/directorID