4 minute read
Karen Foat
director id – it’s your business
If you’re a director of a company in Australia, you will need to apply for a director identification number (director ID) by 30 November 2022.
There is a lot to think about when running a franchise business and staying on top of new requirements can sometimes sneak up on us. It's human nature when we’re busy to leave life admin to the last minute. With the 30 November deadline for director ID approaching, I’ve put together my top 4 things to help you apply now.
top tip #1 find out if you’re a director
required to apply for a director ID. If you’re not sure, here’s one way to check: • Visit abr.business.gov.au and search ABN
Lookup with your ABN or business name. • If ASIC registration - ACN or ARBN or
ARSN or ARFN are listed, and you are a director or a corporate trustee, you will need a director ID.
Still not sure if you need a director ID? Visit
abrs.gov.au/directorID.
top tip #2 Make it your business to get a director id
By getting a director ID you’re meeting your obligations and doing your bit to protect the community from those doing the wrong thing. You need to apply for your director ID yourself, as you are required to verify your identity with the Registrar of Australian Business Registry Services (ABRS). This robust identification process will help build a fairer business environment over time by preventing the use of false and fraudulent director identities. Your advisor can’t apply on your behalf.
top tip #3 apply online using your mygovid app
The good news is you can get your director ID instantly by applying online in 3 steps. The fastest way to apply for your director ID is online using the myGovID app to log in to ABRS online. You will need a myGovID with a Standard or Strong identity strength.
1. Set up your myGovID app
To access the online application you will need to set up the myGovID app with at least a Standard identity strength. myGovID is the Australian Government’s digital identity app – it lets you prove who you are and securely sign in to a range of online government services. There is often confusion between myGovID and a myGov account. myGov is an account that brings together government online services such as Medicare, ATO and Centrelink in one place.
To set up your myGovID you need to install the myGovID app on your smart device from the App store or Google Play
Store. More information on how to install the myGovID app is available at www. mygovid.gov.au/setup.
To achieve a Standard identity strength, you need to enter your personal details and verify at least two of the following
Australian identity documents:
• passport (not more than 3 years expired)
• Medicare card
• driver’s licence or learner’s permit
• birth certificate
• citizenship certificate
• visa (using your foreign passport)
• ImmiCard.
2. Prepare your identity documents
Your director ID application may take longer than you expect if you don’t have your identity documents ready, so take time to gather what you need before starting your application.
You will need your tax file number (TFN), your residential address as held by the
ATO and details from two additional documents. We find most people use:
• bank account details where an ATO refund has previously been paid to
• an ATO notice of assessment reference number.
Alternatively, you can also use:
• APRA fund account details
• dividend statement
• Centrelink payment summary
• PAYG payment summary.
You can also access this information if you have a myGov account under the ‘my profile’ and ‘super’ tabs – at my.gov.au. The documents must be related to you as an individual, and not your company or SMSF.
Your authorised tax, BAS or ASIC agent can’t apply on your behalf, but they can help provide you with your notice of assessment, super and bank account details stored with the ATO. If your name has changed and doesn’t match your identity documents, you will need to provide an additional document verifying the name change, such as a marriage certificate or change of name certificate.
3. Log in to ABRS online to apply
When you have your documents ready, go to abrs.gov.au/directorIDapply to begin the online application.
Once your application is successfully submitted, you will receive your director
ID immediately. If you have been unable to verify your identity or set up a myGovID with a Standard or Strong identity strength to apply online, alternative application options are available. Your director ID should be stored securely until it is required for use in future. It can be shared with your agent or trusted advisor.
Karen foat is the acting Deputy Registrar and Deputy Commissioner of Australian Business Registry Services (ABRS). karen has over 20 years’ experience across many roles within the fields of taxation and government services.
top tip #4 apply before the deadline
All existing directors need to apply for a director ID by 30 November 2022. Penalties may apply if you do not apply within the required timeframe. If you are intending to become a director, you can apply for your director ID up to 12 months in advance. If you don’t use the director ID within 12 months of receiving it, the number will be cancelled. When you reapply, the same number will be issued to you.
