Director Identification Number Regime Now in Place02-12-2021
The Australian Government recently introduced a requirement for all Directors to be assigned with a unique identification number.
The Director’s Identification Number (DIN) will remain the same throughout their career, regardless of the company, to ensure directors can be easily identified within any corporate entity. Individuals must apply for a DIN themselves on the Australian Business Registry Services (ABRS) website using approved documentation to verify their identity, which might include a Tax File Number, superannuation statement, Centrelink, or PAYG payment summary for example.
Does this apply to all Directors?
The requirement applies to ALL current and future Directors of companies. If you were already in a director role before 1 November 2021, when the regime came into force, you will have to apply for a DIN before 30 November 2022.
Any new Directors appointed between 1 November 2021 and 4 April 2022 will have 28 days from their date of appointment within which to apply for a DIN.
Directors appointed from 5 April 2022 must apply for their DIN before their appointment.
Why is a DIN necessary?
The Government has introduced the requirement for a DIN for a number of reasons, namely:
- It will help to reduce the likelihood of false or fictitious identification being used.
- It will help to reduce the chances of illegal phoenix activity by ensuring Directors can be traced across various companies.
- It may also help to protect the privacy of Directors by storing contact details and personal information in one location that is not accessible to the public.
What about non-compliance?
As with all Directors' responsibilities, there are consequences for non-compliance. Under these new DIN laws, Directors who fail to apply for a DIN within the stipulated time frame can face criminal or civil penalties for 5,000 penalty units, which currently stands at $1.11million. Penalties will also apply to Directors who try to undermine the new requirements by applying for multiple DINs or intentionally providing false identification details to the ABRS.
To apply for a DIN visit https://www.abrs.gov.au/director-identification-number.Back to top
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