Director Identification Number requirements

Directors are now required to verify their identity and apply for a Director Identification Number (director ID) in an effort to deal with illegal phoenix activities and improve the traceability of company directors over time.

Included as part of the Treasury Laws Amendment Act 2020 by the Australian Government, the measure is also intended to cut down on the use of false or fraudulent director identities by assigning a unique ID to directors that lasts forever.

With applications for existing directors now open, we’ve prepared responses to some FAQs about the director ID and the processes surrounding it.

What is a director ID?

A director ID is a 15-digit identifier given to a director, or someone who intends to become a director, who has verified their identity with the Australian Business Registry Services. This will be used to trace relationships to companies over time.

Directors need to apply for their own ID and they will only ever have one, which they will keep forever.

Who is required to hold a director ID?

A director ID is required if an individual is an eligible officer of:

  • A company, a registered Australian body or a registered foreign company under the Corporations Act 2001 (Corporations Act)

An eligible officer is a person who is appointed as:

  • A director
  • An alternate director who is acting in that capacity.
  • A person who expects to become an eligible officer within 12 months may apply for an ID (if they do not already hold one). Once registered, that person has 12 months to be appointed as an eligible officer or their ID will be made inactive.

When do directors need to apply?

When you must apply depends on when you were appointed as a director:

  • Existing directors have until 30 November 2022 to apply.
  • New directors appointed between 1 November 2021 and 4 April 2022 must apply within 28 days of their appointment.
  • From 5 April 2022, intending directors must apply before being appointed.
    When do directors need to use the ID?

The director ID needs to be provided to the corporation’s record-holder, which can be the company secretary, another director or an authorised agent of the company.

If appointed as a director of any other companies in the future, directors will also need to give their ID number to the people responsible for maintaining the records of those companies.

Directors must also inform the Registrar of any changes to the information attached to their ID.

What happens if directors fail to comply?

Failing to hold a director ID may result in an infringement notice or possible civil and/or criminal prosecution. The maximum penalties are 60 penalty units ($13,320 at the current penalty unit rate of $222) and 1 year imprisonment. Certain offences may also be applied against those involved in a contravention, which could include the eligible officer’s advisers.

Member clubs are advised that club directors are now able to apply for a director identification number (DIN) through the Australian Business Registry Services website, CLICK HERE.