What you need to know about the new Director’s Identification Number regime
Company directors in Australia will now need to verify their identity by obtaining a unique identifier number from ATO from November 1, 2021.
The Director Identification Number (Director ID) is a 15-digit unique identifier that will help prevent the use of false or fraudulent director identities, make it easier to trace director relationships across companies, and help identify and eliminate involvement in illegal activity such as illegal phoenix activity.
There are civil and criminal penalties for non-compliance and misuse of the system.
Operation of the DIN regime
Eligible persons who have sufficiently established their identity will be provided with a DIN that they will keep for their lifetime – even if they cease to be a Director.
A person can apply if they intend to become a director within the ensuing 12 months. However, the ATO will cancel the DIN allocated to a prospective director if the person does not become a director within 12 months of issue.
ATO will manage the DIN regime.
When to apply for Director’s Identification Number?
Existing directors at the commencement of the regime have time up to November 1, 2022, to apply for a DIN.
Directors appointed between November 1, 2021, and April 4, 2022, must apply within 28 days of their appointment.
From April 5, 2022, it will be mandatory for a DIN number before the appointment of a director.
Please get in touch with Nav Accountants if you need any help with the new rules of the Director’s Identification Number.
How do I apply for a DIN?
You must apply for your own DIN to verify your identity. Unfortunately, we are unable to apply for a DIN on your behalf. Online application is likely to be the fastest channel, with director IDs issued instantly. It is free to apply and available to directors within Australia and overseas.
You can apply online at https://www.abrs.gov.au/director-identification-number/apply-director-identification-number and will require a MyGovID (an app you download on your smart device, different from MyGov) to complete the application process.
For information on how to set up a MyGovID please go to https://www.mygovid.gov.au/set-up
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