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Director ID’s now mandatory

Director ID’s now mandatory

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Director identification numbers (director ID’s) are mandatory for all new company directors across Australia from today.

In a move to crack down on illegal business activity, from April 5 anyone appointed a company director for the first time will need to have applied for their director ID prior to their appointment.

Recently appointed directors must apply within 28 days while those appointed before November 2021 must apply by the end of November this year. 

“Designed to promote the integrity of the corporate system, director IDs aim to cut out false business identities, adverse cross directorships and phoenix companies”

Accountants Daily

About director ID’s

A director identification number (director ID) is a unique identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.

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).

Who needs a director ID?

If you want to become a director or are already one, you will need a director ID.

All directors of a company, registered foreign company, registered Australian body or Aboriginal and Torres Strait Islander corporation will need a director ID.

Sole traders do not require a director ID.

Your director ID

  • Starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166.
  • Ends with an 11-digit number and one ‘check’ digit for error detection.

Directors will only have one director ID, keeping it forever even if you:

  • change companies
  • stop being a director
  • change their name
  • move interstate or overseas.

What are the application deadlines?

Your application due date depends on the date you become a director.

  • If you become a director from 5 April 2022, you must apply for a director ID before your appointment.
  • If you were recently appointed as a director – between 1 November 2021 and 4 April 2022 – you must apply for a director ID within 28 days of appointment.
  • Became a director on or before 31 October 2021? You must apply for a director ID by 30 November 2022.

Applying for your director ID

You need to apply for your own director ID. The fastest way to do this is online using the myGovID app to log in to ABRS online.

Elevate Accounting Business Clients

If you are a client of Elevate Accounting, our team will assist in the set up of your Director ID.

For further information on applying for your director ID please contact us on 08 9460 1040 or click HERE to speak with our Client Services Manager.

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