TFNs, ABNs, DINs… oh my!

The list of identification numbers to remember has just become longer if you’re a director of an Australian company as part of the ATO’s Modernising Business Registers plan.

A Director identification number (director ID) is a unique identifier that all Company Directors will need to apply for once and will be attached to a director permanently, even if they cease to be a director, change their name, or move interstate or overseas.

DIN’s will automatically be linked to all companies that individuals are a Director of, providing all personal details match their DIN exactly.

While it is expected that the ID regime will help prevent illegal phoenixing by ensuring directors can be traced across all companies, it also creates a system of verifying directors rather than just register them preventing the use of false or fictitious identities, such as Elvis Presley or Bob Marley.

Applications are now open but current Australian company directors will have until 30 November 2022 to apply for their unique director identification number (director ID) before fines of over $1.1 million kick in for non-compliance.

 How to apply for your Director ID:

 Applications for a director ID will open next month on the Australian Business Registry Services (ABRS).

 Directors must apply for their director ID themselves, and will be required to produce:

  • myGovID (https://www.mygovid.gov.au/set-up_)

  • two identity documents (eg bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary, and PAYG payment summary…)

There is also an option to apply over the phone or by completing and mailing a paper form if you do not have a myGovID.

While existing directors will have a year to apply for their director ID, any new directors appointed between 1 November 2021 and 4 April 2022 will have just 28 days after appointment to apply for their director ID.

New directors who are appointed from 5 April 2022 will be required to apply for their director ID before appointment.

Stay Safe QLD – Shake tax, not hands

Get in touch with m+h Private tax specialists today on +61 3036 7174 if you need support for you and your business.

As always, the above is general in nature, and the details may change, please discuss with your trusted advisor.

James Hoeft