New Rules Around Director Identification10-03-2022 | Resource | Brent Jones
The Australian Government recently introduced a requirement for all Company Directors to be assigned with a unique identification number. This Director’s Identification Number (DIN) will remain the same throughout their career, regardless of the company they are working for, to ensure that they can be easily identified within any corporate entity.
Why do you need a DIN?
The Government has introduced the requirement for a DIN for a number of reasons. The main aim of the new regime is to reduce fraudulent activity, for example:
- It will help to reduce the likelihood of false or fictitious identification being used by Directors.
- It will help to reduce the chances of illegal phoenix activity by ensuring Directors can be traced across various companies by the relevant authorities.
- 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.
Does this apply to all Directors?
ALL current and future Directors of companies will need a DIN. If you were already in a director role before 1 November 2021, you will need to apply for a DIN before 30 November 2022.
If you are appointed to the role of a Director up to 4 April 2022, you have 28 days from the date of your appointment to apply for a DIN. New Directors appointed from 5 April 2022 onwards must apply for their DIN before their appointment date.
How do you apply for a DIN?
Individuals must apply for a DIN themselves on the Australian Business Registry Services (ABRS) website using approved documentation to verify their identity. This documentation might include a Tax File Number, superannuation statement, Centrelink or PAYG payment summary for example.
What about non-compliance?
As with all Director’s 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. Penalties will also apply to Directors who try to undermine the new requirements by applying for multiple DINs or intentionally provide false identification details to the ABRS.
To apply for a DIN visit https://www.abrs.gov.au/director-identification-number.
If you have a question about the role of a Director, or you would like advice regarding an issue concerning your business, contact Brent Jones at Lamrocks on 02 4731 5688.