Around 40 per cent of company directors are still to apply for a director identification number (director ID) a week from the deadline to do so, according to the ATO’s registry service.
Australian Business Registry Services (ABRS) stated around 1 million directors had still not applied for a director ID with the 30 November deadline looming and may face penalties for failing to do so.
ABRS deputy registrar Karen Foat said more than 1.4 million directors, out of the 2.5 million who are required to hold a director ID, have already applied and high numbers of applications are being received each day, with a record 28,426 directors applying on 21 November.
“With that 30 November deadline coming up fast, we’re really pleased that so many directors are getting their director ID and we encourage all other directors to follow suit,” Foat said.
“Some people might not actually realise they are a director of a company. You don’t have to wear a suit or work in an office to be considered a director. If you run a small business, SMSF, a not-for-profit or even a large sporting club, you may be a director, which means you’ll need a director ID.”
She said 90 per cent of applications were taking place via the ABRS website using a myGovID, resulting in a director ID being issued immediately, but these actions could not be carried out by a third party.
“There’s a common myth floating around that if you’ve got a registered tax agent, they can just apply for a director ID on your behalf, but that’s not true,” she said.
“All company directors must apply for it themselves as they are required to verify their identity themselves. This robust identification process will help prevent the use of false and fraudulent director identities.”
Foat added that while penalties can apply for failing to apply for a director ID, “the community can expect we will take a reasonable approach to support people to apply, particularly where directors have been impacted by circumstances like natural disasters”.
