The Director ID is a 15 digit unique identifier that will help prevent the use of false or fraudulent director identities with the new registry services of the Australian Business Registry Services (ABRS). The ABRS is responsible for the implementation and administration of the Director ID regime. The Australian Securities and Investments Commission (ASIC) is responsible for the enforcement of associated offences.
The purpose of the Director ID regime is to make it easier to trace director relationships across companies and help identify and eliminate involvement in illegal activity such as illegal phoenix activity.
How to apply for a Director ID
Directors should access the ABRS website to apply for a Director ID. myGovID is required, which is an app that can be downloaded to a smart device that allows a director to prove who they are.
To apply for a Director ID a person will need to provide the following required documentation to verify their identify:
- tax file number (TFN);
- residential address as held by the Australian Taxation Office; and
- information from two documents to verify their identity (eg bank account details, ATO notice of assessment, super account details, dividend statement, Centrelink payment summary or PAYG payment summary
Directors will then be able to complete a Director ID application on the ABRS platform to receive the Director ID instantly.
Managing the Director ID
Once a Director ID is received it must be provided to the record-holder of the relevant company. This might be the company secretary, another director, a contact person or an authorised agent of the company.
There is no requirement to provide a Director ID to ASIC.
No changes to company notification requirements
The Director ID requirement does not replace existing requirements to keep company records updated. For example, directors still need to notify their company of changes to their details and the company will still need to notify ASIC of any changes to the public record.
If a director fails to have a Director ID when required to do so, the director may be subject to a maximum criminal penalty of $16,500.00 or a maximum civil penalty of $1,375,000.00.
If a director applies for multiple Director IDs or misrepresents their Director ID, the director may be subject to a maximum criminal penalty of $33,000.00, 1 year imprisonment or both, or a maximum civil penalty of $1,375,000.00.
The penalties are current as at March 2023.