The deadline is fast approaching for all directors to have a Director Identification Number (Director ID). Penalties will apply to directors who have not obtained for a Director ID prior to 30 November 2022.
This article follows on from our previous article on the subject – Director Identification Numbers now required for all company directors – and provides an overview of directors’ obligations with respect to Director IDs, how to apply and penalties for non-compliance.
What is a Director ID?
A Director ID is a unique identification number issued to directors by Australian Business Registry Services. Our previous article provides some background to the introduction of Director IDs in November 2021.
Who needs a Director ID?
All directors (including alternate directors) of a company, registered Australian body or registered foreign company must have a Director ID.
This includes directors of charities and not-for-profits that are a public company limited by guarantee under the Corporations Act 2001 (Cth) or a legal entity under the Corporations Act (Aboriginal and Torres Strait Islander Act 2006 (Cth).
A person must only ever apply for one Director ID even if they are a director of multiple entities.
When do directors need to apply?
When a director is required to obtain a Director ID currently depends on the date of their appointment (see below). However, as of 30 November 2022, all directors will be required to have a Director ID, regardless of when they became a director.
- Appointed on or before 31 October 2021: Prior to 30 November 2022.
- Appointed between 1 November 2021 and 4 April 2022: Within 28 days of appointment.
- Appointed from 5 April 2022: Prior to appointment.
How do directors apply?
Directors should apply for a Director ID through the online portal, which requires a myGovID with at least standard identity strength. Detailed instructions on how to apply are available on the Australian Business Registry Services website.
What are the penalties?
If a director fails to have a Director ID in accordance with the above timelines, the director may be subject to a maximum criminal penalty of $13,200 or a maximum civil penalty of $1,100,000.
If a director applies for multiple Director IDs or misrepresents their Director ID, the director may be subject to a maximum criminal penalty of $26,640, 1 year imprisonment or both, or a maximum civil penalty of $1,100,000.
It is important that all directors are familiar with the Director ID regime and have obtained a Director ID prior to 30 November 2022. If you are unsure whether you are required to have a Director ID, we recommend seeking legal advice.
If you have any queries or would like further information about this article, please contact:
M: 0418 578 701
T: (03) 6235 5147
Published: 17 November 2022