What is a Director ID and why was it introduced?
To combat illegal phoenix activity, the Australian Taxation Office (ATO) has introduced 15-digit Director Identification Numbers to help prevent false or fraudulent use of director identities.
Illegal phoenix activity is when a company or individual attempts to escape financial obligations by liquidating and re-establishing the company under another name. When this happens, several related parties are impacted including:
• Employees who miss out on wages, superannuation, and entitlements
• Suppliers or sub-contractors who are owed money
• The community who misses out on revenue that may have been contributed to community services
As a director, you will apply for you Director ID once only. This 15-digit identifier will stay with you forever regardless of if you change your name, change companies, stop being a director, or move interstate or overseas.
You must apply for your Director ID by 30 November 2022 if you were appointed a director before 31 October 2021. If you were appointed between 1 November 2021 and 4 April 2022, you had 28 days after your appointment to apply. If you are a new director, you will need to apply prior to being appointed.
Failure to apply for a Director ID by the required date, applying for multiple Director IDs, or misusing a Director ID is an enforceable offense. The maximum penalty for failing to apply for a Director ID by 30 November 2022 is $13,200 (criminal); $1,100,000 (civil).
To apply for your director ID:
The fastest way to apply for a Director ID is online, by using the myGovID app to log in to ABRS online.
Before you apply, you’ll need to ensure you have achieved Standard identify strength on the myGovID app. If you need to increase your identity strength, or need to setup myGovID for the first time, follow the steps here:
Step 1: Round up your documents
In addition to a Standard strength identity myGovID, you’ll also need to submit further information that the ATO knows about you.
This includes:
• Your tax file number (TFN)
• Your residential address. Note that this must be the same residential address on file with the ATO
• Information from two documents to verify your identity
Example of the documents you may use:
• bank account details
• an ATO notice of assessment
• APRA fund account details
• a dividend statement
• a Centrelink payment summary
• a PAYG payment summary (this is different to your income statement or your PAYG instalment activity statement).
Note that the documents must be related to you personally, not your business.
Step 2: Log in through myGovID
You’re ready to apply for your Director ID. Click here to log in to the ABRS online through myGovID.
Step 3: Confirm terms and conditions of use
Confirm you have read and understood the terms and conditions of use.
Step 4: Confirm details are correct
Confirm your details are correct. Your name and date of birth may or may not be pre populated.
Step 5: Answer two identity related questions
This is where you’ll need to have your documentation handy. Select two of the options listed and input the details requested. Remember that the documentation must relate to you personally, and not your business.
Step 6: Confirm you meet the eligibility requirements
You’ll now be redirected to the ABRS Director ID website. Read through the requirements and confirm that you are an eligible officer/director or intend to become an eligible officer/director in the next 12 months.
Step 7: Confirm your details are correct, tick the declaration and submit
Confirm your details are correct and input any missing fields. Tick the declaration box confirming all details are correct and click submit.
Voila! You have now been issued a Director ID. Remember to make note of your Director ID, and save it as a PDF somewhere safe.
