Director ID application rejection rare

Director identification rejection

The ATO has acknowledged instances of a rejection for an application of a director identification number are likely to be very rare.

The process for obtaining a director identification number (director ID) has been made as easy and seamless as possible, with the ATO confirming the rejection of applications is highly unlikely.

During an interview with the SMSF Association, ATO SMSF industrial liaison, policy and governance senior director Martin Frauenfelder said: “[Applications] can [be rejected], but we wouldn’t expect to see this occur very often, especially if the person is applying online.

“Where it may happen though is during the paper application if there is an issue with the documentation.”

However, Frauenfelder noted there are established procedures to deal with these situations.

“On the rare occasion an application is rejected, and the applicant disagrees with the decision, they can request a review,” he said.

“To request a review, individuals need to complete a ‘Request for Review of Decision Form’, which is available on the ABRS (Australian Business Registry Service) website.”

He also revealed the director ID framework dictates these requests will be addressed in a timely manner.

“There’s no time limit for requesting a review, however, once we receive the request for a review, we have a service standard of 14 days to process that,” he said.

The requirement for all directors of an SMSF corporate trustee to obtain a director ID was passed into law in June 2020 and while individuals already holding this type of position have until November 2022 to apply for this identification item, he recommended people in this cohort take action as soon as possible.

“The key message here is that the register is available now and any [directors] new or existing can [currently] apply [for a DIN], so I would encourage everyone to jump on and do it sooner rather than later,” he advised.

The regulator has confirmed the preferred method by which to apply for a director ID is via the myGovID app available on mobile devices.

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