expert advice: Martin Jacobs | Assistant Commissioner Business Registry Services | Australian Taxation Office
New director ID to help boost fairer business environment The director identification number (director ID) obligation is the first initiative to be delivered as part of Australian Business Registry Services (ABRS), and all directors need to apply.
A director ID is a unique 15digit identifier that directors or someone who intends to become a director applies for once and keeps forever. Over time, director IDs will help build a fairer business environment by preventing the use of false or fraudulent director identities. This will make it easier for external administrators and regulators to trace directors’ relationships with companies over time and identify director involvement in unlawful behaviours, including illegal phoenix activity. By getting a director ID you’ll be doing your bit to protect the community from those doing the wrong thing.
Do all directors need to apply for a director ID? Director ID is a new requirement and all eligible directors need to apply. As a franchise
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owner, if you are also an eligible director of a company, you will need to apply for a director ID. Eligible directors are set out in legislation as anyone who is a director of a company, a registered Australian body, or a registered foreign company under either the Corporations Act 2001 (Corporations Act) or the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act). This includes directors of: • companies • a corporate trustee of a self-managed super fund • a charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation • a 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
• a foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).
How long do directors have to apply? The good news is that the director ID application is available now to all current and intending directors by visiting ABRS.gov.au. If you are intending on becoming a director for the first time, you can apply up to 12 months in advance. When you need to apply for a director ID depends on the date and under which Act you were appointed. Directors appointed under the Corporations Act 2001: • before or on 31 October 2021 need to apply by 30 November 2022 • between 1 November 2021 and 4 April 2022 need to apply within 28 days of appointment • on or after 5 April 2022 need to apply before they are appointed.
