Around 1.6 million directors, almost two-thirds, have not applied for a DIN.  About 900,000 have applied.

A director of a Company including a director of a corporate trustee is required to register by 30/11/2022.  Failure to do so can incur either a criminal or civil penalty.

Purpose

The purpose of the system is to prevent fraud and phoenix companies arising from the ruins of failed operations, and false identity use.

Process

No doubt one reason for the slow take-up is that directors must apply in person – accountants are unable to do so on their behalf.  The fastest way to do this is online using the myGovID app to log in to ABRS online.  What seems to take the most time is the setting up of the myGovID account.  For instructions:

https://www.abrs.gov.au/director-identification-number/apply-director-identification-number

Step 1 – Set up myGovID

You'll need at least 2 of the following Australian identity documents that verify your identity:

- Driver's licence

- Passport (not more than 3 years expired)

- Birth certificate

- Citizenship certificate

- Visa (using your foreign passport)

- ImmiCard

Step 2 – Gather your documents

In addition to your myGovID, to apply online you will need to have information the ATO knows about you.  This information must relate to you, personally, rather than to the company, registered Australian body, or registered foreign company of which you are a director.  The information you supply must be exactly as the ATO records it.

You will need:

--your tax file number (TFN)

- your residential address as held by the ATO

- information from 2 documents to verify your identity.

Examples of the documents you can use include:

- bank account details (if it has been supplied to the ATO)

- a reference number from an ATO notice of assessment within the past 5 years

- a dividend statement

- a Centrelink payment summary

- a PAYG payment summary

Step 3 – Complete your application

Log in to ABRS online using your myGovID.

Position if no Director ID

What would be the status of directors who fail to obtain an ID?

Remain a director     Yes

Decisions made are valid     Yes

Appointment as a Director after 30/11/2022 valid     Yes

However, a director must also comply with their director ID obligations under the Corporations Act 2002.  ABRS advised that civil and/or criminal penalties can apply.  It could be expected that a warning would initially be given, and then 'firmer action', especially if a director is unwilling to apply.

Once you have your DIN please email the confirmation to veda.finlay@arnfin.net.au.

To those who have already applied and notified us of your DIN's, thank you!