New and current company directors must apply for a director identification number (DIN), or Director ID, as it is also known.
The rule was put in place to discourage unlawful phoenix activity, fraud, and corporate malfeasance and make it easier to follow directors and their business histories. Failure to apply for a DIN on time may result in civil or criminal sanctions.
Directors who obtain their DIN are obligated to provide it to the record-holder in their respective organisations as soon as possible.
Given the number of people required to obtain a DIN, we put together the below guide to navigating it.
What is a director identification number (DIN)?
The Australian Business Registry Services issues a DIN consisting of 15 digits and is a one-of-a-kind identity (ABRS). It never leaves the director’s possession again.
Verification of a director’s identification is necessary before they may submit an application for a DIN. However, even if they hold numerous director roles, a director only has to submit their application for a DIN once. Other positions, such as company secretary, are exempt from the identification requirement placed on directors.
When you need to apply for your DIN is governed by when you were appointed as a director for the first time. All directors who were appointed on or before 31 October 2021 have until November 30, 2022, to apply.
Directors who aspire to be appointed as of today must get their DIN before being appointed.
If you are unable to apply by the deadline, you may submit an application for an extension.
Due date for obtaining a DIN
When you were appointed as a director is the most important factor in determining your deadline for acquiring a DIN.
|Date of becoming a director||Due date to apply for director ID|
|On or before October 31 2021||By November 30 2022|
|Between November 1, 2021, and April 4 2022||Within 28 days of the appointment|
|From April 5 2022||Before appointment|
The application process for local directors
- Create a myGovID with a moderate or high identification strength.
- Access the ABRS website to submit an application.
- Provide the following personal information with your application:
- Tax file number (TFN)
- The residential address corresponding to ATO documents
- Information from two of the following identity-verification documents:
- The BSB and account number of a bank account that has earned interest or received a tax refund in the preceding two years
- Details of a superannuation account (member account number and superfund’s ABN) to which contributions have been made during the preceding 12 months
- A notice of assessment (issue date and reference number) issued by the ATO during the preceding five years
- PAYG payment summary or Income Statement (gross income) issued throughout the last two years
- A Centrelink payment summary (taxable income) given during the previous two years
- A dividend declaration (investment reference number) issued during the preceding two years
The application process for foreign directors
It is quite unlikely that directors from other countries will be able to provide the aforementioned. So they’ll be required to submit their application using a paper form instead.
They will be required to provide two papers, at least one of which must be a primary document.
|Secondary||National ID card|
If the following documents are in another language other than English, they will need to be translated by an authorised translation agency approved by the Australian embassy.
If they are not originals, they will have to be certified by a notary public or local Australian embassy.
Aboriginal and Torres Strait Islander corporations
Corporations considered to be of Aboriginal or Torres Strait Islander descent are subject to a unique set of regulations. If you need help with this matter, please get in touch with a member of our staff directly.
Failure to register
We understand that, as of the date of this information sheet, directors who fail to comply with this new registration face maximum fines of $13,320 (criminal) and $1,050,000 (civil).
Due to the fact that this is a check of your personal identification, we are normally unable to communicate with the ABRS on your behalf.
On the other hand, we can aid Local Directors by supplying them with information that we have access to; we can also assist Foreign Directors by evaluating papers before they incur expenditures for certification or translation and mailing out.
If you have any queries regarding the above information, please do not hesitate to contact an Accru specialist today.