Director ID deadline looms, do you need one?

Historically there had been no way to verify the identity of directors.

This of course resulted in difficulties for ASIC to trace directors who engage in illegal activity along with preventing any further illegal undertakings.

An example of this behaviour is known as illegal phoenixing, where a company is liquidated and a new company is established which provides the same services, all while owing money to creditors.

ASIC has a new process where directors are required to have a director identification number (director ID).

This is like a Tax File Number, as it is a unique number held by you which you keep forever.

If you were appointed a director before 1 November 2021, the government gave you a 13-month grace period to apply.

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You may not have been aware of this initially, or it may not have been a priority for you at the time, however with the deadline looming it certainly is a high priority now.

So, how do you get a director ID? Your options are online, by phone or mail. Online is the fastest and preferred method.

You need to download the myGovID app and verify your personal identity by providing examples such as your driver's licence and Medicare card. You then need to verify your identity with the Australian Tax Office (ATO), which requires your Tax File Number, your residential address, and information from 2 documents held by the ATO.

Examples of these documents are bank account details held by the ATO and an ATO notice of assessment.

We as accountants are unable to apply for your director ID on your behalf.

We can however help you decide if you need to apply, and provide any documents to assist with your application. The 13-month grace period only applies for directors appointed before 1 November 2021.

If you become a director for the first time today, you must have your director ID before you are appointed.