From 1 November 2021 (now) all company directors in Australia will need to apply for a unique Director Identification Number (DIN). Your DIN will be used by ASIC in a similar way to how the ATO uses your Tax File Number - it's a unique number that will be issued once you have verified your identity with Australian Business Registry Services (ABRS). Your DIN will be allocated to you for life - you'll only get one. However, if your Director ID Number has not been used for a period of 12 months, the number will be changed to an inactive status. If this occurs, you will then need to re-apply and request for your inactive Director Identification Number to be reinstated to an active status. The purpose of the introduction of DINs is to prevent people being added as directors without their knowledge (yes, there are dodgy characters that do this) as well as to prevent the use of false or fraudulent director identities. It will also help regulators trace director relationships with companies and better identify involvement in unlawful activities such as illegal phoenixing.
Who needs a DIN?
You'll need a DIN if you're a director of a:
Company
Corporate Trustee - e.g., a self-managed super fund
Other entities such as
Aboriginal and Torres Strait Islander corporation
Charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
Registered Australian body, for example an incorporated association that is registered with ASIC
Foreign company registered with ASIC and carrying on business in Australia (regardless of where you live)
You won't need a DIN if you're a:
Company secretary but not a director
Running a business as a sole trader or partnership
Referred to as a 'director' in your job title but not appointed as a director under the Corporations Act
When do you need to apply?
There is a staged approach to deadlines for obtaining your director ID.
If you became a director on or before 31 October 2021 you must apply by 30 November 2022.
If you become a director between 1 November 2021 and 4 April 2022 you will need to apply within 28 days of appointment.
From 5 April 2022 you will need to apply for a director ID Number before registering a company.
How to Apply
You need to apply for your own Director ID (no one else can do it for you) and the fastest way to do this is by using the myGovID app. However, we are here to provide you guidance and assistance through the process.
You will need:
A standard or strong identity strength myGovID. You can apply by phone or paper form if you cannot use myGovID.
Your Tax File Number - is optional but does speed up the process
Your residential address as recorded by the ATO
Answers to two questions based on information held on the following document types
Notice of Assessment
Superannuation account
Dividend Statement
Centrelink Statement
PAYG Summary
You can start your application now on the ABRS it really does only take around 10 minutes and even though there is a considerable time before existing directors require a DIN, we suggest you do this sooner rather than later so that you don't forget. What to do once you have your DIN Just like your Tax File Number you'll need to keep your DIN in a safe place for future use - you will need it if you decide to incorporate a new company or become a director in an existing company. If you're a client, we ask that you advise us of your DIN either via phone or through our secure client Dropbox portal and we will update any ASIC records we act as agent for. You'll be able to look up and maintain your DIN through the ABRS online portal using your myGovID. If you are a director of multiple companies such as your corporate SMSF trustee, corporate family trust trustee or business, you only need to apply for a single director ID which is applicable for all the entities. If you don't have a myGovID (note myGovID is different from myGov), we can provide you with further information to assist you with setting up your myGovID.
What if I don't apply
If you don’t apply for a Director Identification Number during the required time-frame, there may be civil or criminal penalties and you may be issued with an infringement notice.
Please do not hesitate to get in touch with us if you need guidance or assistance applying for your Director Identification Number on 0490 033 038 or via email leonie@helloledger.com.au.
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