The federal government has started an awareness campaign to help company directors apply for a director identification number (director ID) ahead of the 30 November deadline, noting many people were still unaware of the requirement to hold one.
The campaign, announced by Assistant Treasurer and Financial Services Minister Stephen Jones, will use broad-based and targeted communications to notify directors of their obligations to hold a director ID number.
“Interestingly, some people don’t actually realise they are a director of a company. If you run a company that is a small business, SMSF, a not‑for‑profit or even a large sporting club, it’s quite likely that you’re a director and you’ll need to apply for your director ID,” Jones said.
“The fastest way to apply for your director ID is online. Once you’ve verified your identity with myGovID, you can complete your application online and your director ID will be issued instantly.”
He added applications were free, but had to be made by directors themselves, who will be required to verify their identity, and the identification process will help prevent the use of false and fraudulent director identities.
“Director ID will help create a fairer business environment and level the playing field for businesses by preventing the use of false director identities to engage in fraud or phoenix behaviour,” he said.
“By applying for your director ID, you’re helping to protect the community, including small businesses and workers, from those doing the wrong thing.”
The 15-digit director ID, which is assigned only once to a director, is administered by Australian Business Registry Services (ABRS), which is in turn managed by the ATO.
The online application process has been described by some SMSF trustees as confusing.
In an effort to bypass its complexity, some advisers have recommended clients use a manual form, however, that form is no longer publicly available from the ABRS website.
The SMSF Association has also been active in reminding the directors of corporate SMSF trustees, including those who resigned their position after 31 October 2021, that they should apply for a director ID number after having found many were unaware of the requirement to do so.
