Director identification numbers
The government has announced that director identification numbers (director IDs) will be introduced in late 2021 as part of a package of reforms to address illegal phoenix activity. This initiative will be delivered by the Australian Taxation Office as part of the Modernising Business Registers Program.
All eligible directors will be issued with a unique director ID to be kept permanently and provide traceability of a director's profile and association with companies over their career.
Why are director IDs required?
Director IDs will help prevent the use of fake director identifies and make it easier for regulators to associate directors with companies.
Directors or alternate directors of a company or other body corporate registered under the Corporations Act 2001 or Corporations (Aboriginal and Torres Strait Islander) ACT 2006.
Read more on entities that require directors to have a director ID.
Who doesn't need a director ID?
A director ID is not required if you are a:
- company secretary but not a director
- acting as an external administrator of a company
- run your business as a sole trader or partnership.
What are the penalties for non-compliance?
Civil and criminal penalties will apply where individuals:
- fail to apply for a Director ID within the prescribed timeframes or if directed by the regulator to do so
- intentionally apply for more than one Director ID
- provide a false Director ID
- are actively involved in the contravention of any of the above offences.
Directors don’t need to do anything now. Applications for director IDs will open in late 2021 and we will keep you up to date on next steps.
Frequently Asked Questions
For more information download our FAQs provided by the ATO.