The government has now implemented the director identification number (director ID) scheme to target illegal phoenix activity and the registration of fake directors.

“Pheonixing” is when directors transfer the assets of an existing company to a new company for below market value, leaving the old company unable to pay its debts. The new company, that the original directors operate, continues the original business whilst the original company is closed down leaving its creditors unpaid.

The director ID is intended to give regulators the ability to monitor director’s activity across companies in over to prevent such activity.

 

What is a Director ID?

A director ID is a unique identifier, similar to a tax file number (TFN), that all Australian company directors will be required to obtain. The ID will link a director to each company they are, or have previously been, a director of. It will stay with the director forever, even if the director changes companies, resigns from all directorships, changes their name or moves overseas.

Who needs a Director ID and by what date am I required to obtain one?

From 1 November 2021, all acting directors must apply for a director ID. This includes directors of corporate trustees.

An application for a director ID must be made individually and only by those who are applying for the director ID. As you are required to prove your identity as part of the process, our firm, or any other third party, is not able to apply for a director ID on your behalf. 

The date you first became a director will determine when you need to apply for your Director ID. Please refer to the table below:

Date you first become a director

Date by when you must have applied for a Director Identification Number

On or before 31 October 2021 By 30 November 2022
Between 1 November 2021 and 4 April 2022 Within 28 days of appointment
From 5 April 2022 Before appointment

 

If you are a new director for the first time (from 1st of November 2021) and are having trouble completing the application within 28 days, you may file for an extension (Form: NAT75390). You will be required to state a reason as to why you require an extension and the date you believe you will be able to complete the application.

 

What do I do with my Director ID?

Once you receive your director ID, please pass it on to the record-holder and/or registered ASIC agent of your company. In many instances, this will be our office.

Should the details concerning your director ID change, you can edit your details via online, phone or paper form.

 

Director ID – How To Apply