Company directors to face thousands in fines if ID regulations not met by 30 November
In response to the ATO’s crackdown on fraudulent ‘phoenixing’, the Australian Tax Office requires Company Directors to have a Director ID by month-end or risk major fines.
By 30 November, Director IDs will be essential for all company directors covered by the Corporations Act, including those running major entities, small businesses, charities, and even not-for-profits.
There are concerns many will not be ready in time, with the ABC revealing just weeks out from deadline that almost half of Australia’s estimated 2.5 million company directors have yet to be issued a Director ID.
“Those most likely to not realise they need a Director ID are those trustees of self-managed super funds or family trusts set up as ‘corporate’ trustees, rather than ‘individual’ trustees,”.
A Director ID is a 15-digit identifier given to a Director that allows authorities to track activities through various government databases.
Application Process
The easiest and fastest way to apply is online via ABRS.
· You’ll need a myGovID account to apply for your director ID number online. This creates an authenticated digital identity you can use when accessing government services online.
· Apply through ABRS Director identification number. You’ll need proof of identity documents such as tax file number, ATO notice of assessment or bank details.
· You’ll then need to complete the application process from the ABRS webpage, which will link your myGovID account to the application. If the application is verified successfully, you’ll receive your director ID straight away.
· You can also apply via paper form or telephone; however, this is a slower process.
What Next?
Set up your myGovID if you haven’t already.
Get your identification documents together and apply by your due date.
This is also a great time to update your ABN details and ASIC details.
Talk to us if you’d like to know more about director ID numbers and company director obligations