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What is a Director Identification Number (director ID) and do I need one?

 

The new requirement to obtain a director ID also applies to individuals with a Trust or an SMSF with a corporate trustee. All directors of your corporate trustee will need to apply for their director ID by the prescribed deadline. 

This document provides essential information about Director Identification Numbers, including applying for one and when. 

An application for a director ID must be made individually and only by those applying for the director ID. As you are required to prove your identity as part of the process, our firm, or any other third party, cannot apply for a director ID on your behalf.  

What is a Director Identification Number (director ID)?

A director ID is a unique identifier that directors need to apply for, like a tax file number. If you are a director of multiple companies, you are only required to have one director ID that will be used across all companies. You will keep your director ID forever even if you change companies, resign altogether from your director role(s), change your name, or move overseas.

Why do I need a Director Identification Number?

As part of the Government’s Digital Business Plan, it is rolling out a Modernising Business Registers program which includes the introduction of director IDs. The primary purpose is to prevent the use of false or fraudulent director identities and improve the system’s efficiency by making it easier to meet registration obligations and trace director activity and relationships. Improving the integrity and security of business data is expected to reduce the risk of unlawful activity. 

 

How do I apply for a Director Identification Number?

There are three key steps to apply for your director ID.

Step 1: Set up myGovID – If you do not already have a myGovID, you will need to set this up before applying for your director ID online. You can find information on how to set up your myGovID by downloading the app at:  https://www.mygovid.gov.au/set-up 

Step 2: Gather your documents – You will need to gather some information that the ATO already knows about you to verify your identity. You will need your tax file number, your residential address held by the ATO, and information from two of the following documents:

  • Bank account details
  • ATO Notice of assessment
  • Super account details 
  • Dividend statement
  • Centrelink payment summary
  • PAYG payment summary 

Most of this information can be downloaded from your myGov account, so it may be worthwhile linking to this service ahead of applying for your director ID. Note myGovID is different to your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare and more, while myGovID is an app that enables you to prove who you are and to log in to a range of online government services, including myGov.  

Step 3: Complete your application – Once you have myGovID and information to verify your identity, you are ready to apply for your director ID. You can click on the following link to start the application process. The application process is quick and should take you less than 5 minutes. 

https://abrs.gov.au/persons/ui/secure/start/applyForDirectorID?action=applyfordirectorid 

Further information about the application process, and step-by-step instructions, can be found via this link: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number

By when do I need to have a Director Identification Number?

The director ID deadline depends on when you were first appointed as a director of any Australian company. This may or may not be when your company was established. Please contact our office if you are unsure which deadline applies to you.  

 

How can we help?

If you have any questions or would like further information about director IDs, please feel free to give me a call or arrange a time for a meeting to discuss your requirements in more detail. Although we are unable to apply for a director ID on your behalf, we would be more than happy to guide you through the process. 

 

 

 

 

 

 

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Stephen Anthony

Stephen J Anthony, BBus(Acc), MIPA, AFA, CTA Principal Stephen is the founder and principal of Perth Accounting & Tax Solutions. He has over 35 years of experience in Accounting and taxation. Stephen has always been passionate about delivering great accounting and tax solutions to businesses. Stephen has held a number of board positions for schools and has been treasurer for many not for profit organisations. Stephen has a keen interest in kayaking and bushwalking. Stephen is also an active member of Rotary and you may see volunteering at the gates of the Rotary Bring & Buy in Maddington Shopping Centre car park on Sunday mornings Member of the Institute of Public Accountants Certified Tax Advisor status of Taxation Institute of Australia Registered Tax Agent Xero Certified Advisor Quickbooks Online Pro Advisor

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