New legislation requires all company directors to have a Director Identification Number (DIN). This applies to directors of existing companies along with new appointments.
The Modernizing Business Registers (MBR) program aims to establish a new database that will unite the Australian Business Register and various ASIC registers into a single online platform. This platform is to be administered by the Australian Business Registry Services (ABRS).
Each director will only have one DIN which is connected to their myGovID.
Directors must apply for their DIN and cannot appoint an agent to apply on their behalf. A third party may only apply on a director’s behalf in exceptional circumstances, including where, for example, a director cannot apply in their own capacity due to injury or illness.
When does this come into effect?
Directors appointed on or before 31 October 2021 must apply for a DIN by 30 November 2022.
There will be a grace period of 12 months after 31 October 2021 during which all new directors will have 28 days post-appointment to apply for a DIN. After this grace period ends, all directors will be required to apply for a DIN prior to their appointment.
How to apply?
You can apply for a DIN:
- online,
- by phone; or
- with a paper form
Applying for a DIN online
Step 1: Directors will need to setup a myGovID (if they have not already have one). Here is a link to the myGovID website where you can set up your myGovID https://www.mygovid.gov.au/set-up
Step 2: The following information will be required by directors to setup a DIN:
- Australian tax file number (TFN)
- residential address as held by the ATO
- two documents to verify your identity (eg bank account details, ATO assessment notice, super account details, dividend statement, PAYG payment summary etc)
Step 3: Complete an application online for a DIN using your myGovID via the ABRS website. The process should take less than 5 minutes.
Here is the link ABRS website where you can apply for a DIN online https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
Applying for a DIN by phone
You can apply by phone if you have:
- Australian tax file number (TFN)
- the Information you need to verify your identity. Here is a link to the ABRS website where you can find more information on what you will need to apply for a DIN by phone https://www.abrs.gov.au/identity
Applying for a DIN with a paper form
You can apply for a DIN using a downloadable form. Here is a link to the paper application form https://www.abrs.gov.au/Application_for_a_DIN.pdf
You will need to provide certified copies of your documents to verify your identity. For information on what identity documents you will need, please follow this link https://www.abrs.gov.au/identity
Penalties
The primary purpose of the MBR program is to combat illegal phoenix activity and to foster accountability among directors. A director may be subject to a civil or criminal penalty or issued with an infringement notice if they apply for multiple DINs, supply false information to the Registrar or fail to apply for a DIN before the deadline.
For more information visit: www.ato.gov.au/mbr
If you need further information on the new Directors Identification Number requirements, please telephone our office on (07) 3220 2929 or email us at contact@plastiraslawyers.com for further advice.