Director IDs – What you need to know ahead of the November rollout

Director id image Photo by Ono Kosuki from Pexels

There’s a major modernisation of Australia’s business registries in the works, and a significant step in this process is rolling out in November 2021 with Director IDs. All Australian Company Directors will soon be required to register themselves with a Director ID – a unique identifier that will be kept indefinitely and applied across companies.

Why are Director IDs being introduced?

Director IDs will allow the government to verify and track the corporate history of individual directors.

This new regime is ultimately about combatting illegal phoenixing, where a company director will transfer assets to a new company to continue operating a business, whilst leaving any bad debt with the previous company and placing it in liquidation.

When do the new rules apply?

Applications will open from 1 November 2021, although it’s encouraged for existing directors to get prepared immediately.

  • Existing Directors – Appointed on or before 31 October 2021
    • Have until 30 November 2022 to apply
  • New Directors – Appointed between 1 November 2021 and 4 April 2022
    • Must apply within 28 days of their appointment
  • New Directors – Appointed from 5 April 2022 onwards
    • Must have a Director ID before their appointment

What do you need to do?

Visit the Australian Business Registry Services website for detailed steps on applying for your Director ID.

Note that a MyGovID is required and can be set up here. This is different to the MyGov platform. Existing company directors are encouraged to setup their MyGovID now in preparation for registrations opening in November 2021.

Contact us

We advise businesses from every angle, including corporate and compliance requirements. Get in touch with us on 07 3223 6100 or email redchip@redchip.com.au to discuss your business needs.

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