Director Identification Numbers Start Now
The requirement for a Director Identification Number has now started!
The DIN is a unique and permanent identifier created to combat fraud. Eventually every director will have a single ID, irrespective of the number of directorships held. Any individual who is a director or acting as an alternate director, must register. This includes directors of an SMSF, or limited recourse borrowing, corporate trustee.
Due to the huge number of applications that will need processing, registration deadlines will be staggered.
|First Appointed as Director||Must Apply for a Director ID|
|On or before 31 October 2021||By 30 November 2022|
|From 1 November 2021 to 4 April 2022||Within 28 days of appointment|
|From 5 April 2022||
Directors must apply for their director ID personally as they need to verify their identity. No one can apply on their behalf. Undoubtedly this will cause difficulties for some directors.
The ATO manages the application process and recommends an online application using myGovID. This is different to MyGov. myGovID is an app that downloads to a smart device. It enables proof of identity and access to a range of government online services, including myGov.
If not already done, click on Login | myGovID to establish access credentials. Once these have been established log into Director identification number | Australian Business Registry Services (ABRS) to apply for a director identification number.
From now until 4 April 2022, directors of newly established companies will have 28 days to establish their DIN. This will not affect our process for the establishment of a corporate trustee for an SMSF, or for a limited recourse borrowing arrangement, but it will leave the directors subject to ASIC action, including penalties, if they don’t comply with the 28 day deadline.
Unfortunately, as the director must personally register for their DIN we will not be able to assist with this.
At some stage, where a director refuses to comply, it would be expected that ASIC would not allow their directorship to continue. Where the company is acting as a trustee for an SMSF this may cause a breach of the director/member nexus which would need to be rectified within 6 months. Such rectification may require the member to leave the fund.
As this is a new process it would be expected that the regulators will be a little patient, though this should not be relied upon. Notwithstanding the staggered implementation program we would recommend early registration.