This super alert provides important information about Director Identification Numbers, including how to apply for one.
What is a Director Identification Number (director ID) and do I need one?
A director ID is a unique identifier for directors, similar to a tax file number. If you are a director of multiple companies, you will only have one director ID that will be used across all companies. You will keep your director ID forever, regardless of whether you change companies, resign altogether from your director role(s), change your name, or move overseas.
New rules now require directors of Australian companies to obtain a Director Identification Number (director ID). The new requirement to obtain a director ID also applies to individuals who have a Self Managed Superannuation Fund (SMSF) with a corporate trustee. All directors of your SMSFs corporate trustee will need to apply for their own director ID before 30 November 2022.
An application for a director ID must be made individually and only by those who are applying for the director ID. As you are required to prove your identity as part of the process, a third party is not able to apply for a director ID on your behalf.
Why do I need a Director Identification Number?
As part of the Government’s Digital Business Plan, it is rolling out a Modernising Business Registers program, including the introduction of director IDs. The primary purpose is to prevent the use of false or fraudulent director identities and improve the system’s efficiency by making it easier to meet registration obligations and trace director activity and relationships. Improving the integrity and security of business data is expected to reduce the risk of unlawful activity.
How do I apply for a Director Identification Number?
You can apply for a director ID via telephone or via myGov.
Completing the Telephone Application
Step One: Gather your documents – You will need to gather identifying information to verify your identity with the ATO. You will need your tax file number, your residential address held by the ATO, and information from two of the following documents:
- Bank account details
- ATO notice of assessment
- Super account details
- Dividend statement
- Centrelink payment summary
- PAYG payment summary.
Step Two: Have the documents set out above, telephone 13 62 50 and:
- Wait for the automated system to ask you to select from the following, then select option one
- When an operator answers, advise them you wish to apply for a director ID number
- Provide them with the above information you collated earlier
- Once the operator generates your director ID, record a copy
- Provide your director ID to BDO so we can note it on your file.
Completing the myGov application
There are three key steps to apply for your director ID via myGov.
Step One: Set up myGovID – If you do not already have a myGovID, you will need to set this up before you can apply for your director ID online. You can find information on how to set up your myGovID by downloading the app at: https://www.mygovid.gov.au/set-up
Step Two: Gather your documents – You will need to gather identifying information to verify your identity with the ATO. You will need your tax file number, the residential address held by the ATO, and information from two of the following documents:
- Bank account details
- ATO notice of assessment
- Super account details
- Dividend statement
- Centrelink payment summary
- PAYG payment summary.
Most of this information can be downloaded from your myGov account, so it may be worthwhile linking to this service ahead of applying for your director ID. Note: myGovID is different to your myGov account. Your myGov account allows you to link to and access online services provided by the ATO, Centrelink, Medicare and more. Whereas myGovID is an app that enables you to prove who you are and to log in to a range of online government services, including myGov.
Step Three: Complete your application - Once you have a myGovID and information to verify your identity, you are ready to apply for your director ID. You can click on the following link to start the application process. The application process is quick and should take you less than five minutes.
Further information about the application process, and step-by-step instructions, can be found via this link.
Action Required
Apply for your director ID before 30 November 2022 and provide your director ID number to your BDO adviser.
How can we help?
If you have any questions or would like further information about director IDs, contact your BDO adviser so that we can discuss your requirements in more detail. Although we are unable to apply for a director ID on your behalf, we would be more than happy to guide you through the process.