DIN—What It Is, Why You Need It, and How to Obtain It
As part of the 2020 Budget Digital Business Plan, the Australian government wants to implement the Modernising Business Registers program. In this program, the ABRS (Australian Business Registry Services) was to be established to help businesses register and manage the information they share with the government. This is to be rolled out between 2021 to 2024, and the first change is that directors need to get a DIN (Director Identification Number).
Today, we want to shed light on the DIN to help you understand what it is, why you need it, and how to obtain it:
What is a DIN?
The DIN is a unique identification number for a director in the business industry. This number will make it easy for the government and businesses to identify a director by name. The identification number is mandatory for the directors of certain businesses and companies, the Australian Taxation Office (ATO), and the Australian Securities and Investments Commission (ASIC).
Why Do We Need a DIN?
As part of the Modernising Business Registers program, the DIN is being introduced as a way to help the government identify directors. This will help them track directors of Australian companies and enable the officers to gather information about the director.
If a director doesn’t have a DIN, they won’t be able to open one. This is because the government will be using the DIN when they verify the identity of directors using an online portal that they will use to register businesses.
How to Get a DIN?
If you want to register a business, you must get a DIN. Here is how to do it:
Step #1 – Determine if you need a DIN
As mentioned earlier, the DIN is mandatory for the directors of certain businesses, including companies, the ATO and the ASIC. This means that if you are running a business that requires a DIN, you need to get one. The DINs can be obtained using an online portal. To register for a DIN, you need a MyGov account. You can set one up as soon as you know you need a DIN.
If you are the director of a public company, you will have to apply for a PBN (person business number) instead of a DIN.
Step #2 – Register for a DIN
To register for a DIN, you need to visit the Government Gateway. This is an online portal that will allow you to complete the registration process. To start, you will need the following:
Go to this link Director ID Regsitration
Personal details, including your name and date of birth
Your business registration details, including business name and ABN (Australian Business Number)
Your email address
The bank account details where you want to receive the DIN
Biometrics such as a numeric device and a photograph
Step #3 – Receive your DIN
After you enter the required information and successfully register for a DIN, you will receive an email from the government. The email that you will receive will be from myGov and not the Department of Home Affairs, which also handles business registrations. This is why you should always check the source of the email and the link. The link in the email will take you to the Government Gateway, where you will be asked to verify your identity.
After you have verified your identity, you will receive the DIN in your bank account. The government will deposit the DIN in your bank account without any deductions.
Conclusion
In an effort to help the government identify directors, the Australian government has decided to roll out the DIN. The introduction of this identification number is part of the 2020 Budget Digital Business Plan. If you are running a business and is the appointed director, you should consider obtaining a DIN. It is compulsory, so get yours as soon as possible to avoid any trouble!
SMB Accounting offers individual tax returns, small business accounting, and various other services to help companies stay on top of their finances and obligations. If you are looking for accountants in the Sunshine Coast to help you with obtaining a DIN, work with us today!