IMPORTANT, URGENT NOTICE – GET YOUR DIRECTOR ID TODAY TO AVOID ASIC PENALTIES!
Folks, as we announced last year, everyone who is a Director of a Company MUST obtain a Director ID before close of business on 30 November 2022!
This includes where you are a Director of a Company that is the Trustee of your Self-Managed Superannuation Fund.
So time is fast running out, and we recommend that any CapitalQ Community Members who are still yet to obtain their Director ID do so as a MATTER OF URGENCY!!!
What is a Director ID?
A Director ID is a compulsory unique identifying number (somewhat similar to a Tax File Number (“TFN”)) which all individuals who have been appointed as Directors of at least one company MUST hold before 30 November 2022.
Why Do We Have Director IDs and How Will They Work
Director IDs (“DINs”) are to be used to improve identification of individuals acting as directors of companies and are expected to help improve the fight against fraud, allow regulators to better trace director activities and relationships, and to stop directors who have done the wrong thing from being appointed again in the future.
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 (ie. the company to which they are appointed).
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 (Note there are very few CapitalQ Community Members who are only Secretaries and not also Directors).
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.
The deadline to get your DIN is 30 November 2022 so don’t delay any further!
How to apply
Head to the Australian Business Registry Services (“ABRS”) and follow the detailed steps (everything you need to know is on the ABRS website).
PLEASE NOTE: We, CapitalQ, are strictly forbidden from applying for your DIN on your behalf. Unfortunately the rules say you must do so yourself (because you must be able to verify your own identity).
However, if you are unsure whether you need to apply, by all means give our office a call. You can also follow the instructions per this ABRS website page Top questions when applying for a director id under the heading “I’m not sure if I need a director ID. How do I check?”
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.