Approximately 700,000 Australian Company Directors failed to meet the ATO deadline of 30 November to register for their Director ID number. Thankfully, the ATO has confirmed an extension until 14 December to get this done, or face a fine of up to $13,200.

The mandatory system was introduced in 2021 to combat illegal phoenixing activity, that is when company directors transfer assets of an existing company to a new company, leaving the old company with debt and creditors/stakeholders of the new company exposed and unaware. The ATO estimates this activity costs Australians up to $5 billion a year.

All directors of Australian companies including charities, not-for-profits and corporate trusts, registered Australian bodies and registered foreign companies must apply for the 15-digit identification number, which then follows them throughout their careers. Most sole traders and those operating in a partnership are exempt — excluding those whose business affairs are organised under a company structure, but it is wise to check.

The ID number can be obtained through Director myGovID. In the lead up to the 30 November Deadline, many Directors experienced technical issues with the registration process and overwhelmed customer service lines. Directors must set up a myGovID before applying for a Director ID. If you encounter technical issues, the ATO suggests users delete and re-download the myGovID app and set it up using documents already linked to their myGovID.

The deadline to apply for a Director ID for directors of corporations is now 14 December. The maximum criminal penalty for not having a Director ID when required to do so, or failure to apply for one when directed by the Registrar, sits at $13,200, with civil penalties extending to $1.1 million.

If you’re unsure about your status in relation to this, please contact us on [email protected]