Director Identification Number (director ID) - what you need to know and action

You may have heard about the new rules which require directors of Australian companies to obtain a Director Identification Number (director ID). The new requirement to obtain a director ID also applies to individuals who have an SMSF or a trust with a corporate trustee. All directors of a company or corporate trustee will need to apply for their own director ID by the deadline.

You don’t need a director ID if you are running a business as a sole trader or partnership.

What is a Director Identification Number (director ID)?

A director ID is a unique identifier that directors only need to apply for once, like a tax file number. If you are a director of multiple companies, you are only required to have one director ID that will be used across all companies. You will keep your director ID forever even if you change companies, resign altogether from your director role(s), change your name, or move overseas.

Why do I need a Director Identification Number?

As part of the Government’s Digital Business Plan, it is rolling out a Modernising Business Registers program which includes the introduction of director IDs. The main purpose is to prevent the use of false or fraudulent director identities as well as to improve the efficiency of the system by making it easier to meet registration obligations and trace director activity and relationships. By improving the integrity and security of business data it is expected to reduce the risk of unlawful activity.

When do I need to have a Director Identification Number?

The date you must apply by depends on the date you became a director of any Australian company. This may or may not be when your SMSF corporate trustee company was established.

Directors appointed on or before 31 October 2021 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.

Please contact our office if you are unsure which deadline applies to you.

How do I apply for a Director Identification Number?

You can apply for your director ID at Australian Business Registry Services (ABRS) or by using the myGovID app. An application for a director ID must be made individually, and only by those who are applying for the director ID. As you are required to prove your identity as part of the process, our firm, is not able to apply for a director ID on your behalf, but we can help to guide you through the process.

There are 3 key steps to apply for your director ID.

Step 1: Set up myGovID – If you do not already have a myGovID you will need to set this up before you can apply for your director ID online. You can find information on how to setup your myGovID by downloading the app at: https://www.mygovid.gov.au/set-up

Note, myGovID is different from your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare and more, while myGovID is an app that enables you to prove who you are and to log in to a range of government online services, including myGov.

myGovID is an app, downloaded onto your smart device. You will need to have some key documents available to complete the ID checks: Drivers Licence, Passport, Medicare Card.

Step 2: Gather your documents – You will need to gather some information that the ATO already knows about you to verify your identity. You will need your tax file number, your residential address held by the ATO, and information from two of the following documents:

Bank account details
ATO notice of assessment
Super account details
Dividend statement
Centrelink payment summary
PAYG payment summary

Most of this information can be downloaded from your myGov account so it may be worthwhile linking to this service ahead of applying for your director ID.

Step 3: Complete your application – Once you have a myGovID and information to verify your identity, you are ready to apply for your director ID. You can click on the following link to start the application process. The application process is quick and should take you less than 5 minutes.

Further information about the application process, and step-by-step instructions, can be found via this link: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number

How can we help?

If you have any questions or would like further information about director IDs, please feel free to contact our team. Although we are unable to apply for a director ID on your behalf, we would be more than happy to guide you through the process.