We suspect few would be optimistic enough to think that anonymity and privacy still exists, but for those hangers-on, one might argue the latest nail in the coffin is upon us…

We introduce to the CapitalQ Community the, mandatory Director Identification Number regime…

In the 2020 Budget Digital Business Plan, the Federal Government announced they would proceed with full implementation of the Modern Business Registers (“MBR”) program.

The MBR program is designed to streamline how businesses share and maintain their information with the government.  And a key element in the program is the introduction of the Director Identification Number (“Director ID” or “DIN”).

The idea of the Director ID or DIN is that it will assist in preventing the use of false or fraudulent identities, make it easier for liquidators and external administrators to trace and track individuals’ relationships with companies, and assist law enforcement in identifying unlawful activities including phoenixing.

Director ID (DIN)

From November 2021 individuals who are presently appointed as Directors of one or more companies will be required to apply for their unique Director ID which, once approved, they will keep forever (much like a Tax File Number (“TFN”)).

In order to apply, Directors must verify their identity, and for that reason we are being instructed that Directors must attend to the application themselves, an agent (including an ASIC or Tax Agent like CapitalQ) CAN NOT apply for them.

What Will DINs be used for?

Initially, DINs will only be shared with certain government bodies (including federal and state governments) as well as courts and tribunals or with someone to whom the director has given permission for its disclosure.

However, it is intended that in due course, the DIN register will become publicly available.

Who Must Apply for a DIN?

A DIN will be required if you are –

  • A Director or Alternate Director of one or more corporate entities including –
    • Companies (both public and private) incorporated under the Corporations Act (this includes corporate trustees of trusts and self-managed superannuation funds),
    • Aboriginal and Torres Strait Islander corporations registered under the CATSI Act,
    • Registered charities or not for profit entities incorporated under the Corporations Act or the CATSI Act,
    • Registered Australian bodies such as incorporated associations registered with ASIC,
    • Foreign companies registered with ASIC and carrying on business in Australia.

Who Doesn’t Need a DIN?

Company Secretaries who are not also Directors, will not be required to apply for a DIN.

Nor will Directors of unincorporated entities, or individuals who’s job title includes the word “Director” but who are not formally appointed as Directors of an incorporated entity.

Of course Sole Traders, Partners in Partnerships and Individual Trustees will also not be required to apply for a DIN.

Application Timeframes

The date upon which you become a Director will determine the time frame applicable to you.

The applicable dates are set out in the below table –

Date you become a Director Date you must Apply
On or prior to 31 October 2021 By 30 November 2022
Between 1 November 2021 and 4 April 2022 Within 28 days of appointment
From 5 April 2022 Prior to your appointment

Note: Directors of Aboriginal and Torres Strait Islander corporations have additional time to apply.

How to apply

As stated above, Directors must apply for their own DIN, neither CapitalQ or any other advisor or agent is able to do so on your behalf.

You will apply through the Australian Business Registry Services (“ABRS”) website at abrs.gov.au.

The best way to do so is using your myGovID though there are other, less convenient, options available.

Consequences of Failing to Comply

There are substantial potential civil as well as criminal penalties which can be applied to each of the Director, the company itself AND any advisors who are involved in a breach of the new requirements, including a failure to obtain a DIN by the due date.