Australian company directors are now required to register for a unique identification number that they will keep for life, much like a tax file number.
The Director Identification Number (DIN) will need to be applied for and have each director’s identity verified under this new statutory requirement.
The DIN regime has been created to promote good corporate conduct, detect, deter and penalise director’s involvement in illegal activities, and generally improve the integrity of corporate data recorded. Furthermore, the registration process and verification will help prevent the use of false or fraudulent director identities.
Who needs to apply and when?
If you want to become a director or are already one, you’ll need a director ID. You can apply for a director ID from 1 November 2021.
You need a director ID if you are (or planning to become) director of a:
- Corporate trustee
- Aboriginal and Torres Strait Islander corporation
- Charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
- Australian body registered with ASIC; and
- Foreign company registered with ASIC and carrying on business in Australia
The following entities are not required to have a Director ID:
- Sole traders or partnerships
- Non-director company secretaries
- External administrator
- Directors of registered charities not registered with ASIC
- Referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act
- Officers of an unincorporated association, cooperative, or incorporated association established under state or territory legislation (unless the organisation is also a registered Australian body)
You must apply for your director ID to verify your identity. No one can apply on your behalf. Even your trusted accountant can not complete this one on your behalf.
How to apply for your Director ID
Step one: Setup myGovID (this is different from mygov)
For directions on how to do this, go to: https://www.mygovid.gov.au/set-up
Step two: Gather your documents
You will need to have some information the ATO knows about you when you apply for your director ID:
- your tax file number (TFN)
- your residential address as held by the ATO
- information from two documents to verify your identity.
Examples of the documents you can use to verify your identity include:
- bank account details
- an ATO notice of assessment
- super account details
- a dividend statement
- a Centrelink paymen summary
- PAYG payment summary.
Step three: Complete your application
Once you have a myGovID and information to verify your identity, you can log in and apply for your director ID. The application process should take less than 5 minutes.
If you need any assistance, don’t hesitate to get in touch with your Rogerson Kenny accountant.