Company Director? New Director ID required!

All company directors will now be required to apply for a director identification number (DIN) by 30 November 2022. The main purpose of DIN is to trace or identify the director’s history or director’s relationship across different companies. This legislation will help the regulators investigate for any unlawful activity, particularly the phoenix activities, to promote good conduct and improve the integrity of corporate data.

Starting November 1,2021, directors can now apply for DINs using the newly formed Australian Business Registry Services (ABRS). All the directors must apply for themselves because they need to verify their own identity. It is required that the director must set up first a myGovID before starting the application and usual identity documents must be provided such as driver’s license, passports, birth certificates and Medicare cards.

What is a DIN?

A Director Identification Number is a unique identifier you need to apply for once and will keep forever even when changing company.

When to apply?

The dates that directors will need to apply for DIN will vary depending on when they become a director.

Corporation Act 2001 (Corporation Act)

Date of becoming a director	Date DIN Application to be made
On or before 31 October 2021	By 30 November 2022
1 November 2021 to 4 April 2022	Within 28 days of appointment
On or after 5 April 2022	Before appointment

 

Directors of the Indigenous corporation which are governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (the CATSI Act) have separate obligations to apply and have a further 12 months to obtain DIN.

Date of becoming a director	Date DIN Application to be made
On or before 31 October 2021	By 30 November 2023
From 1 November 2022	Before Appointment

 

Failure to Apply for a DIN?

Under the new legislation, there will be both civil and criminal penalties for non-compliance, using multiple Director Identification Number for one person, and or uses false information or misrepresentation in their application.

 

How can we assist you?

If you have any questions regarding the new legislation discussed and how will this impact you or your business, please contact our firm SMB Accounting.