Uploaded on May 14, 2023
You make have heard that the Australian Business Registry Services (ABRS) has introduced the Director Identification Number (Director ID) as a requirement.
What You Need to Know About Director ID’s
What You Need to
Know About
Director ID’s
To modernise Australian business registers, the
Australian government has introduced a new company
director tracking system, the Director Identification
Number (DIN). Once the Australian Taxation Office
(ATO) confirms a person’s identity, they will receive a
unique DIN. Importantly, directors keep this number
permanently. As a result, a director will be able to use
this number across multiple companies for each
directorship they hold.
The DIN has received strong support from the
Australian Securities and Investment Commission
(ASIC). They believe it will significantly benefit
regulators and individuals doing business. Additionally,
it will help provide greater security and modernise the
way director information is collected. This article will
explain how the company director tracking system
works in Australia.
Individuals who are currently a director or will be acting
as a director in the future must apply for a DIN. The
Australian Business Registry Services (ABRS) will be
responsible for introducing and maintaining the DIN
regime.
The DIN Regime
The DIN regime has commenced with a transitional
period applying from 1 November 2021. Notably, with
the commencement of the DIN regime, the following
applies:
existing directors will need to apply for a DIN by 30
November 2022;
new directors appointed between 1 November 2021
and 4 April 2022 will be required to apply within 28
days of their appointment; and
new directors appointed from 5 April 2022 will need to
apply for a DIN before their appointment.
The table below outlines key dates you should note.
All directors, acting alternate directors and
management committee members of ‘registered
bodies’ will require a DIN. Registered bodies include
companies and registered Australian bodies under
the Corporations Act.
To apply for a DIN, visit the ABRS website.
Frequently Asked Questions
What is the company director tracking system?
The Australian government has introduced a new
tracking system, the Director Identification Number to
modernise Australian business registers. Accordingly, a
director will be able to use this number across multiple
companies for each directorship they hold.
Why do you need a DIN?
The Federal Government wants to prevent the use of
fraudulent or false director identities, in particular,
illegal phoenixing, a widespread issue in Australia.
Phoenixing occurs when a company is liquidated,
abandoned or wound up to avoid paying its debts, and
the same group of people start a new company.
What do you need to do?
You can apply for your DIN from 1 November 2021. If
you are becoming a director, you can apply before your
appointment. The law provides a clear timeframe for
when you need to apply.
Why is the DIN being introduced?
Before the DIN regime, ASIC did not verify the identity
of directors. Likewise, there was limited transparency of
relationships between directors and multiple
companies. Also, directors may have multiple records
within ASIC systems. The new company director
tracking system promotes good governance and
significantly improves data security.
I am a company director. Is it compulsory for me to
comply with the new tracking system?
All directors, acting alternate directors and
management committee members of ‘registered
bodies’ will require a DIN. Further, there will be
significant civil and criminal penalties for directors who
do not comply.
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