If you're a company director, you must have your director ID by 30 November. Here's what you need to know.
What is a director ID?
A director ID is a unique number the Australian Government gives to a company director who has verified their identity.
The aim is to prevent fraudulent behaviour and stop activities such as 'phoenixing' that sees one business entity replaced by another so the owners can avoid paying their debts.
When the system was introduced, anyone who was already a director on 31 October 2021 was given until 30 November 2022 to get their director ID.
There are penalties for having no director ID, having multiple director IDs or using one that is false or belongs to someone else. Depending on the type of offence and whether it is pursued under criminal law or civil law, the penalty can be a fine up to $26,640 or one year imprisonment or both (under criminal law) or a fine up to $1,100,100 (under civil law). The ASIC website has more information about penalties.
How to apply for your director ID
Unfortunately, the application process is complex and can take a while. There is some helpful information on the Australian Business Registry Services (ABRS) website's information about director ID.
First, you need a myGovID. This is different to a myGov account that gives you access to Australian Government services.
To get a myGovID you need to download the myGovID app to your smartphone. Then, use the app to scan your identification and confirm your details.
For more about myGovID, see the myGovID website.
Once you have your myGovID, go to the ABRS website to apply for your director ID.
(This news item is a shortened version of our blog post If you are a director, you need your ID).