Deadline looms for new director ID requirement

Are you a director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation? If so, you have until the end of this month to apply for a director identification number (director ID). 

Company directors are required by law to apply for a director identification number (director ID). According to the Australian Business Registry Services (ABRS), a director ID is needed if a person is a director or an alternate director of a:

  • company registered with the Australian Securities and Investments Commission (ASIC) or the Office of the Registrar of Indigenous Corporations (ORIC) 
  • corporate trustee, for example of a self-managed super fund (SMSF) 
  • registered Australian body, for example an incorporated association registered with ASIC, like sporting clubs that trade outside of their state or territory 
  • charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander Corporation. 

To check if you need a director ID, search ABN Lookup. If ASIC Registration – ACN or ARBN or ARSN or ARFN is showing against your record, and you are a director, you need to apply for a director ID. 

You can also search ASIC companies register for director details. Not-for-profit organisations that are not registered with ACNC and have an ARBN or ACN should check the ASIC companies register, while charities that are registered with the ACNC and have an ARBN or ACN can check directors via search for a charity on the ACNC website.

Who doesn’t need a director ID? 

However, people don’t need a director ID if they are: 

  • a company secretary but not a director 
  • acting as an external administrator of a company 
  • running a business as a sole trader or partnership 
  • referred to as a ‘director’ in your job title but have not been appointed as a director under the Corporations Act or the CATSI Act 
  • a director of a registered charity with an organisation type that is not registered with ASIC or ORIC to operate throughout Australia 
  • an officer of an unincorporated association, cooperative or incorporated association established under state or territory legislation, unless the organisation is also a registered Australian body. 

To clarify whether a person is a company director or who the directors of an entity may be, search: 

However, ABRS notes that a director ID requirement does not replace or change existing requirements to keep company records updated, such as a change of address for directors, companies still need to notify ASIC of any changes for the public record.

When do I need to apply? 

When people must apply for a director ID depends on the date they first become a director. 

For people who first became a director on or before October 31, 2021, the deadline for applying is November 30, 2022. 

If the date of becoming a director is between November 1, 2021, and April 4, 2022, then the deadline is within 28 days of appointment. From April 5, 2022, the deadline is before appointment. 

You can apply for a director ID here. 

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. 

Penalties for not applying on time, or failing to apply when directed by the Registrar, include a maximum for individuals of $13,200 (criminal) or $1.1 million (civil).

 

Do you have a legal matter that requires our help? Get in touch on (08) 9365 7746 or via [email protected]. 

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