What is director ID?
A director identification number (director ID) is a unique identifier you will keep forever. It will help to prevent the use of false or fraudulent director identities.
A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with Australia Business Register.
A director ID:
- starts with 036, which is the 3-digit country code for Australia under International Standard ISO 3166
- ends with an 11-digit number and one ‘check’ digit for error detection.
- Directors need to apply for their own director ID. It’s free to apply.
- change companies
- stop being a director
- change their name
- move interstate or overseas.
Shareholders, employees, creditors, consumers, external administrators and regulators are entitled to know the names and certain details of the directors of a company.
This is important because it will help to:
- prevent the use of false or fraudulent director identities
- make it easier for external administrators and regulators to trace directors’ relationships with companies over time
- identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.
- employees miss out on wages, superannuation and entitlements
- suppliers or sub-contractors are left unpaid
- other businesses are put at a competitive disadvantage
- the community misses out on revenue that could have contributed to community services.
You need a director ID if you’re an eligible officer of:
- a company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)
- an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
- a director
- an alternate director who is acting in that capacity.
When you must apply for your director ID depends on the date you become a director.
Date you become 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 appointment
You must apply for your own director ID to verify your identity. No one can apply on your behalf.
Step 1 – Set up myGovID
You will need a myGovID with a Standard or Strong identity strength to apply for your director ID online. If you live outside Australia and can’t get a myGovID with a Standard or Strong identity strength, you will need to apply with a paper form and provide certified copies of your identity documents. If you live in Australia and:
- don’t have a myGovID, you can download the app；
- already have a myGovID, you can apply for your director ID now.
You will need to have some information the ATO knows about you when you apply for your director ID:
- your tax file number (TFN)
- your residential address as held by the ATO
- information from two documents to verify your identity.
- 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
Once you have a myGovID with a Standard or Strong identity strength, and information to verify your identity, you can log in and apply for your director ID. The application process should take less than 5 minutes.
Chang Accounting Advisory Pty Ltd, we are CPA practice and tax agent, we could help our clients to update their information with ATO, but Director ID you need to apply by yourself. If you or your families or friends need our services, please feel free to contact our team for any assistance.
This article is for informational purposes only and does not form part of our advice. This article is based on director ID guideline. Please contact our team if you need any assistance.
Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, wechat: clairechang26
Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, wechat: michellejc
Claire Chang