Have you applied for your Director Identification Number yet?
The Director Identification Number (DIN) regime has been passed by parliament and is now law. Under the new law, all directors of companies registered under the Corporations Act will need to have one unique identifier.
The DIN is a measure that will limit the opportunities for a company and its directors to engage in phoenixing activities. This new measure requires all directors to confirm their identity before receiving a DIN, and there will be civil and criminal penalties for system misuse. This includes intentionally applying for more than one DIN.
From 1 November 2021, this register will be open for applications at Australian Business Registry Services (www.abrs.gov.au).
Confirming your identity
A key component of the DIN register is to be able to separately identify different directors by giving them a unique identifer.
Therefore, part of the application process will be verifying your identity. The easiest way to do this will be to set up a myGovID account if you do not already have one (mygovid.gov.au).
When do I need to apply?
As mentioned above, the commencement of the DIN register on the ABRS website will be 1 November 2021. This date will be the start of the transitional period, in which different rules apply based on when you became a director of a company. The transitional period is due to end on 4 April 2022, being one year since the Australian Taxation Office took over the operation of the DIN registration system.
If you were appointed as a director of your company on or before 31 October 2021, you are required to get a DIN before 30 November 2022.
If you are appointed to a new directorship role between 1 November 2021 and 4 April 2022, then this is during the ABRS transitional period. You will be required to get a DIN within 28 days of your appointment.
From 5 April 2022, it is expected that you will apply for and receive your DIN prior to your appointment as a director of a company.
