You may have heard about the new rules which require directors of Australian companies to obtain a Director Identification Number (director ID). The new requirement to obtain a director ID also applies to individuals who have an SMSF with a corporate trustee, which is why we wanted to bring this new requirement to your attention. All directors of your corporate trustee will need to apply for their own director ID by the prescribed deadline.
Why do I need a Director Identification Number?
As part of the Government’s Digital Business Plan, it is rolling out a Modernising Business Registers program which includes the introduction of director IDs. A director ID is a unique identifier that directors need to apply for, like a tax file number. The main purpose is to prevent the use of false or fraudulent director identities as well as to improve the efficiency of the system by making it easier to meet registration obligations and trace director activity and relationships. Improving the integrity and security of business data is expected to reduce the risk of unlawful activity.
An application for a director ID must be made individually and only by those who are applying for the director ID. As you are required to prove your identity as part of the process, our firm, or any other third party, is not able to apply for a director ID on your behalf.
How do I apply for a Director Identification Number?
There are 3 key steps to applying for your director ID.
Step 1: Set up myGovID – If you do not already have a myGovID you will need to set this up before you can apply for your director ID online. You can find information on how to set up your myGovID by downloading the app at: https://www.mygovid.gov.au/set-up
Step 2: Gather your documents – You will need to gather some information that the ATO already knows about you to verify your identity. You will need your tax file number, your residential address held by the ATO, and information from two of the following documents:
- Bank account details
- ATO Notice of assessment
- Super account details
- Dividend statement
- Centrelink payment summary
- PAYG payment summary
Most of this information can be downloaded from your myGov account so it may be worthwhile linking to this service ahead of applying for your director ID. Note, myGovID is different to your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare, and more, while myGovID is an app that enables you to prove who you are and to log in to a range of government online services, including myGov.
Step 3: Complete your application – Once you have a myGovID and information to verify your identity, you are ready to apply for your director ID. You can click on the following link to start the application process. The application process is quick and should take you less than 5 minutes.
Further information about the application process, and step-by-step instructions, can be found via this link: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
By when do I need to have a Director Identification Number?
The director ID deadline depends on when you were first appointed as a director of any Australian company. This may or may not be when your SMSF corporate trustee company was established. Please contact our office if you are unsure which deadline applies to you.
|Date you first become a director
|Date by when you must have applied for a Director Identification Number
|On or before 31 October 2021
|By 30 November 2022
|Between 1 November 2021 and 4 April 2022
|Within 28 days of the appointment
|From 5 April 2022