From 1 November 2021 (now) all company directors in Australia will need to apply for a unique Director Identification Number (DIN).
Your DIN will be used by ASIC in a similar way to how the ATO uses your TFN – that is, it is a unique number that will be issued once you have verified your identity with Australian Business Registry Services (ABRS). Your DIN will be allocated to you for life (you’ll only get one). The purpose of the introduction of DINs is to prevent people being added as directors without their knowledge (yes, there are dodgy characters that do this) as well as to prevent the use of false or fraudulent director identities. It will also help regulators trace director relationships with companies and better identify involvement in unlawful activities such as illegal phoenixing.
Who needs a DIN?
You’ll need a DIN if you’re a director of a
- Corporate Trustee – e.g., a self-managed super fund
- Other entities such as
- Aboriginal and Torres Strait Islander corporation
- Charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
- Registered Australian body, for example an incorporated association that is registered with ASIC
- Foreign company registered with ASIC and carrying on business in Australia (regardless of where you live)
You won’t need a DIN if you’re a
- Company secretary but not a director
- Running a business as a sole trader or partnership
- Referred to as a ‘director’ in your job title but not appointed as a director under the Corporations Act
When do you need to apply?
There is a staged approach to deadlines for obtaining your director ID
|Date you became a director||Date you must apply|
|On or before 31 October 2021||By 30 November 2022|
|Between 1 November 2021 and 4 April 2022||Within 28 days of appointment|
|From 5 April 2022||Before you’re appointed as a director|
How to Apply
You need to apply for your own Director ID (no one else can do it for you) and the fastest way to do this is by using the myGovID app.
You will need:
- A standard or strong identity strength myGovID. (You can apply by phone or paper form if you cannot use myGovID)
- Your Tax File Number (optional but does speed up the process)
- Your residential address as recorded by the ATO
- Answers to two questions based on information held on the following document types
- Notice of Assessment
- Superannuation account
- Dividend Statement
- Centrelink Statement
- PAYG Summary
You can start your application now on the ABRS it really does only take around 10 minutes and even though there is a considerable time before existing directors require a DIN, we suggest you do this soon so that you don’t forget.
What to do once you have your DIN
Just like your Tax File Number you’ll need to keep your DIN in a safe place for future use – you will need it if you decide to incorporate a new company or become a director in an existing company.
If you’re a client, we ask that you advise us of your DIN either via phone or through our secure client portal and we will update any ASIC records we act as agent for.
You’ll be able to look up and maintain your DIN through the ABRS online portal using your myGovID.
Lemonade Beach is a Business Advisory and Accounting firm based on the Gold Coast. If you’d like to hear more about our services and how we could work together, we invite you to book an obligation-free discovery call