Almost two thirds, or 1.6 million company directors across Australia have not yet applied for their Director ID number. The ATO’s new registration scheme has a deadline of 30 November 2022 for directors appointed on or before 31 October 2021, so it is absolutely critical that directors of companies and SMSFs avoid having their head in the sand on this one.

The scheme has been introduced by the ATO to prevent phoenix and fraudulent activity by directors. If a director commits fraud under one company, a Director ID will prevent that director from setting up a new company and committing the same crime.

Failure to have a Director ID by the deadline, or failure to apply when directed by the registrar, can carry a maximum criminal penalty of $13,200 or up to $1,100,000 under civil law.

Who needs one?

You need a Director ID if you direct a:

• company
• Aboriginal and Torres Strait Islander corporation
• corporate trustee, for example, of a self-managed super fund
• charity or not-for-profit organisation that is a company or Aboriginal and Torres Strait Islander corporation
• registered Australian body, for example, an incorporated association that is registered with the Australian Securities and Investments Commission (ASIC) and trades outside the state or territory in which it is incorporated
• foreign company registered with ASIC and carrying on business in Australia (regardless of where you live).

How to get one?

Your accountant can help you to decide if you need one and walk you through the process, however they cannot apply on your behalf. All Directors need to apply in person. The first thing to do is check that you can access your personal MyGovID and that you have your personal identification documents handy.

If you anticipate difficulty in meeting the deadline of 30 November, you need to let us know ASAP as communication with the Australian Business Registry Services is critical in avoiding penalties: [email protected]