On 1 November, applications for Director identification (ID) numbers opened.
As part of its Digital Business Plan, the government announced the full implementation of the Modernising Business Registers (MBR) program with the Director ID the first step of the program.
In the coming years ASIC & the ABR will come together to join one digital platform called the ABRS (Australian Business Register Services). The website www.abrs.gov.au is now live. Currently, the Director ID is the only feature on the ABRS website with new features to be slowly rolled out over the coming years.
The aim of the MBR program is to:
- Transition to
- All online registrations and lodgments
- Electronic delivery of communication/correspondence
- Electronic execution of documents
- Facilitate changes to record keeping requirements
- No longer require/accept paper correspondence, paper lodgments, and manual payments i.e. money orders and cheques
- Streamline how individuals register, view and maintain their business information with the government
Director ID Number
What is it?
The Director ID is a 15 digit number which is issued to individuals who act as company directors. Issued like a TFN, this number is kept forever.
Directors will keep the same number even if changing directorships, changing names or moving etc. This aids in linking all companies to the one individual.
Why is it being introduced?
- To deter and disrupt any fraudulent behaviour
- Prevent the appointment of fictitious directors and inaccurate director names
- Tighten the company registration process and help avoid the appointment of directors without their consent
- Clean out ASIC’s register of fake director names
- Improve data integrity and security
- Increase traceability and transparency
When is it starting?
From 1 November 2021 new and existing directors will be able to apply for their director ID. There is a 13 month transitional period which will allow directors to become familiar with the new requirements and make their application.
Penalties may apply to directors who are non-compliant by 30 November 2022.
How can directors apply?
ASIC agents (e.g. Walsh Accountants) cannot do it on their behalf. The Director ID number is a legal requirement and no responsibility will fall on ASIC agents for non-compliance.
Directors MUST apply themselves.
Submitting an application is an easy two-step process:
- Directors verify identity (via setting up a MyGovID) – They will be required to provide ID documents to verify themselves.
- Apply for the ID number via the ABRS website – They will use their MyGovID to login to the online services and be prompted to answer some questions about their personal details (TFN, residential address and 2 x questions of ATO record information i.e. bank account details, super details, Centrelink details, PAYG summary info, dividend info etc.)
Once your application is processed, the ABRS will data match all the companies you are listed as director on and they will be linked to you.
You should receive an email from ABRS asking you to check all the company information that has been linked to you.
How can Walsh Accountants help?
If you are a client of Walsh Accountants, you can expect to hear from us in the coming months with instructions on what you are required to do to apply for your Director ID.
However, you don’t have to wait to hear from us! If you are confident to go and apply for your Director ID, we encourage you to do so. If you run into any problems or need further clarification, we are here to help.
You can contact our Client Service Coordinator Alana Reckin on 5592 3644 or email@example.com