Director ID application due day

When you must apply for your director ID depends on the date you first become a director:

• from 5 April 2022, intending new directors must apply before being appointed.
• new directors appointed for the first time between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
• directors appointed on or before 31 October 2021 have until 30 November 2022 to apply.

To be a director under the Corporations Act, you must:

• be an individual who is at least 18 years old
• not be disqualified from managing corporations unless the appointment is made with the permission of ASIC or the Court.

Australian Business Registry Services (ABRS) is responsible for administering the director ID initiative.

ASIC is responsible for enforcing director ID offences set out in the Corporations Act 2001. It is a criminal offence if you do not apply on time.

Meeting your obligations

Your director ID obligations include:

• applying for a director ID within the relevant timeframe for your situation
• applying for a director ID when directed by the Registrar to do so
• not applying for more than one director ID (unless directed by the Registrar to do so)
• not misrepresenting your director ID to a Commonwealth body, company, registered Australian body or Aboriginal and Torres Strait Islander corporation
• not being involved in a breach of the above director ID obligations.

If you can’t apply by the date you need to, you can complete an application for an extension of time to apply for a director ID. 

Are there any changes to existing company notification requirements?

No. The director ID requirement does not replace or change existing requirements to keep company records updated. For example, directors must still notify their company of changes in address or other details. The company will still need to notify ASIC of any changes for the public record.

Am I required to provide my director ID to ASIC or companies?

Currently there is no requirement to provide your director ID to ASIC or to the companies you’re a director of. We’ll keep you up to date with changes.

What are the director ID offences and penalties?

ASIC’s enforcement role covers four new director ID offences under the Corporations Act 2001.

Offence	Legislative section	Maximum penalties    for individuals
Failure to have a director ID    when required to do so	s1272C	$13,200 (criminal); $1,100,000 (civil)
Failure to apply for a director    ID when directed by    the Registrar	s1272D	$13,200 (criminal); $1,100,000 (civil)
Applying for multiple     director IDs	s1272G	$26,640, 1 year imprisonment or both (criminal); $1,100,000 (civil)
Misrepresenting director ID	s1272H	$26,640, 1 year imprisonment or both (criminal); $1,100,000 (civil)

Therefore, we suggest business owners to apply for director ID on time to avoid the penalties. 

Chang Accounting Advisory Pty Ltd, we are CPA practice and tax agent. 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 Australian Taxation Office (ATO). 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