PERSONAL FINANCE | Director ID Mandate
Director ID Mandated
For Company Directors Calling all company directors. An announcement from the Australian Securities and Investments Commision (ASIC) states that all company directors are required to apply for a Director ID. In order to distinguish directors and avoid cases of fraud identities, a unique identifier will be applied to directors to use forever.
How To Apply?
It is free to apply for a Director ID. The process of applying is similar to applying for a Tax File Number, however it must be you and you only who applies for it. First navigate to the Australian Business Registry Services’ website- abrs. gov.au/directorIDapply. Then click the button that says ‘Apply now with myGovID’ and login using your myGovID details. If you don’t have a myGovID account, you can easily sign up via the site- myGovID.gov.au. Or you can download the myGovID app and apply via that platform.
What is Director ID?
To verify your identity as a company director, a 15-digit identification number will be allocated to directors indefinitely, even if you stop being a director or other circumstances change such as moving overseas or switching companies. This initiative was introduced as part of the Government’s Modernisation of Businesses Registers (MBR) Program, meaning less fraudulent activity will occur due to the greater security that the Director ID offers.
Next, you will be asked some questions to verify your identity. To fast-track this step, have your Tax File Number and residential address prepared and ready to go.
In regard to privacy, your Director ID will not be accessible by the public or anyone unless permission is given by the director. Directors of foreign companies, Aboriginal and Torres Strait Islander Organisations, registered Australian bodies or even corporate trustee of self-managed super funds, will have to apply for a Director ID. However, you do not need one if you are running a business as a sole trader or haven’t been appointed the position of director through the Corporations Act.
Once you’ve answered those questions, you will be required to fill out a quick Director ID application form. Once you have done this you can click submit and will immediately be issued your unique Director ID, displayed on your screen. If you are unable to apply for the ID online, there are other non-digital options available.
As a precaution it is important to think of your Director ID as similar to a Tax File Number, in that they should not be revealed without necessity.
26
It is ideal to give your Director ID to whoever's responsible for keeping your records on file and your company agent.
wfo
