Are you prepared for the new Director ID requirements?

|by Caitlin Fruk|News

A recent initiative by the Commonwealth Government to promote ethical corporate conduct has seen the introduction of the new Director Identification regime under the Treasury Laws Amendment Act 2020. All eligible directors will be issued with a unique 15-diget identification number that they will be required to keep forever.

The purpose of the new ID system is to improve director transparency by making it easier to trace a director’s relationship across companies and prevent the use of false identities, illegal phoenix arrangements and other unlawful activity.

Who will require a Director ID?
If you are a director (or acting in the capacity of an alternate director) for any of the following entity categories, you will need to apply for a director ID:

  • A company (with an ACN)
  • An Aboriginal and Torres Strait Islander corporation
  • A corporate trustee
  • A charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
  • Registered Australian body (with an ABRN)
  • A foreign company who are carrying on business in Australia and are registered with ASIC (regardless of where that individual lives).

When will a director need to apply by?
When you became, or when you intend to become, a director will determine when you need to apply.

Applications are open from 2 November 2021.

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How to apply:
From 1 November 2021 directors will be able to apply for their Director ID by visiting the Australian Business Registry Services (ABRS) website.

In order to submit an application, a director will first need to have a myGovID. For more information about setting up your myGovID please see the following link - Australian Government - How to set up your myGovID.

All applications must be completed by the director themselves as there are proof of identity requirements that cannot be completed on an individual’s behalf.

All applications must be completed by the director themselves as there are proof of identity requirements that cannot be completed on an individual’s behalf.

Please do not hesitate to contact one of your trusted advisors at Cordner Advisory should you need further assistance.

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