Director Identification Numbers – Requirements

From 1 November 2021, the Federal Government has implemented a new layer of accountability for company directors.

The Director Identification Number (DIN) is a unique identifier that a director will apply for once and keep forever. The goal is to help prevent the use of false or fraudulent director identities and make it easier for regulators, the public and creditors to understand the parties’ running companies.

The date people must apply for their director ID depends on when they become a director:

•                     Existing directors have until 30 November 2022 to apply.

•                     Directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.

•                     From 5 April 2022, intending directors must apply before they are appointed.

There are civil and criminal penalties that may apply for directors who fail to obtain a DIN in the required time frame or if directed by the Registrar to do so. Under the new law civil and criminal penalties will also apply where individuals:

•                     misrepresent or provide a false a DIN to a government body or registered body;

•                     knowingly apply for multiple DINs; or

•                     are actively involved in the contravention of any of the above offences.

A contravention of these obligations is both a civil penalty and an offence. This allows the regulator or prosecutor (as the case may be) to take enforcement action proportionate to the action that constituted the breach. The Registrar may also issue infringement notices in relation to such conduct.

WCT Advisory managing partner Andrew Weatherley says, “It’s another step that directors and their advisors, should be aware of as a deterrent to some of the unscrupulous behaviour  that led to the introduction of the DIN.”

Mr. Weatherley also says, “The new rules put more onus and responsibility on you as a director to be accountable. As a director everything you do will be known to everybody.”

More information is also available at:

•                     Australian Tax Office: https://www.ato.gov.au/Super/Sup/Preparing-for-your-director-ID/

•                     Australian Business Registry Services: https://www.abrs.gov.au/director-identification-number

Application Process

Step 1: Directors will need to set up a myGovID if they do not already have one. If you are a company director who does not have a myGovID, you can find information on how to download the app here.

Please be aware that a myGovID is separate to myGov. If you cannot get a myGovID online, you can apply by phone or through a paper form from 1 November 2021.

Step 2: Directors will need to provide the following information when making their application:

• tax file number (TFN).

• residential address as held by the ATO.

• information from two documents to verify your identity.

Examples of the documents you can use to verify your identity include:

• bank account details

• an ATO notice of assessment

• super account details

• a dividend statement

• a Centrelink payment summary

• PAYG payment summary.

Step 3: Complete your application on the ABRS website which should take less than five minutes.

Company directors will only have one DIN which they will keep forever even if they change companies, stop being a director, change their name or move interstate or overseas. Furthermore, the DIN will confirm your identity and trace your relationships to companies.

Once received, you need to provide your DIN to your organisation.