Have you missed the deadline to apply for a director identification number (director ID)? If so, you can still apply! The ATO says it will take a reasonable approach to directors who are trying to do the right thing. Importantly, directors who need additional time to apply (beyond 14 December 2022), can request an extension of time by completing an Application for an extension of time to apply for a director ID.
To recap, a director ID is a unique 15-digit identifier that a company director applies for once and keeps forever. By allowing regulators to trace directors’ relationships with companies over time, director IDs will help prevent illegal activity and level the playing field for businesses.
Director IDs are administered by the Australian Business Registry Services (ABRS), which is managed by the ATO.
Who?
You need a director ID if you are an eligible officer of:
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a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
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an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
An ‘eligible officer’ is a person who is appointed as:
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a director
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an alternative director who is acting in that capacity.
You also need a director ID if you are a director of a:
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corporate trustee, for example, of an SMSF
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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 the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated, or
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foreign company registered with ASIC and carrying on a business in Australia (regardless of where you live).
Who doesn’t?
A director ID is not required if you are a director of an incorporated association (with no ABRN) registered with the Australian Charities and Not-for-profits Commission (ACNC), company secretary but not a director, acting as an external administrator of a company, or running your business as a sole trader or partnership.
It has also been recently clarified by the ABRS that directors who resigned their directorship before 31 October 2021 are not required to obtain a director ID. Deceased directors, as they are unable to apply themselves, are also exempt.
In summary, if you run a company that is a small business, are a corporate trustee of an SMSF, operate a not-for-profit or even a large sporting club, it’s quite likely that you’re a director, and therefore you’ll need to apply for your director ID.
How?
The easiest way to apply for a director ID is online at the ABRS website – www.abrs.gov.au/directorID. To access the online application, use the myGovID app with at least a standard identity strength to log in to ABRS Online. You must apply personally – a tax advisor cannot apply on your behalf. However, our in-house accountants can advise you around eligibility, and answer any other questions you may have. Book a free appointment today.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
