What is a Director Identification Number in Australia? How to apply?

Are you a director of an Australian company? If so, you probably need a director ID. If you don’t already have one, penalties may apply.

We’re going to go over everything you need to know about a director ID in Australia. We’ll cover what it is, who needs it, and how to apply. Let’s jump right in.

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What is a Director Identification Number in Australia?

A director identification number (director ID) is a 15-digit unique identifier you must apply for if you’re a director of an Australian company.

Each director ID begins with 036, the International Standard ISO 3166’s code for Australia. 11 other digits follow this with a final check digit.

The unique number remains with you for life even if you:

• Stop being a director
• Change your name
• Move interstate or abroad
• Change companies

The purpose of the director ID is to protect shareholders and other interested parties from directors participating in fraudulent activities.

An example would be closing a company and defaulting on payments, then re-opening a new one and conducting the exact same business. The director ID allows people to see the movement of an individual.¹

Who needs one, and when to apply

If you’re an eligible company officer, that means a director or an alternate director acting in that capacity, you must apply for a director ID.

A director of the following scenarios applies:

• A company registered with the Australian Securities and Investment Commission (ASIC) or Office of the Registrar of Indigenous Corporations (ORIC)
• A corporate trustee of a self-managed super fund (SMSF)
• A registered Australian body trading outside its state or territory
• An Australian charity or not-for-profit organisation

If you’re unsure if you need to apply, search for your company ABRN. If you see ASIC Registration – ACN or ARBN or ARSN or ARFN next to the business name, and you’re a director, you must apply.

Ideally, you must register within 12 months before becoming a director. If it’s a sudden appointment, register immediately.²

What are the fees for applying

Applying for a director ID is free.¹

The only time a payment would be required is if you don’t apply in time; see the FAQs below for more detail.

What are the requirements to get a director ID in Australia

Once you’ve identified that you need to apply for a director ID, you need to gather some documents.³

First, you must have a myGovID, with a minimum of Standard identity strength.

If it’s currently displaying Strong identity strength, you only need to provide:

• your residential address, as held by the ATO
• your individual tax file number (TFN)

If it’s Standard identity strength, you’ll need to provide the above two plus 2 of any of the following:

• an ATO notice of assessment
• bank account details the ATO has on record
• a PAYG payment summary – this is different to your income statement or your PAYG instalment activity statement
• a Centrelink payment summary
• APRA super fund account details, including the super fund's Australian business number (ABN)
• a dividend statement

How to apply for your director ID

There are 2 steps.

First, if you don’t already have a myGovID (see above), you’ll need to apply and provide sufficient documentation for it to reach at least Standard identity strength.

Next, log into the ABRS site with your myGovID and complete the online form.

If you have any difficulties with the online application and you’re physically in Australia, phone the ABRS. You’ll be asked identification questions, so be prepared.

If you’re based outside of Australia, and the online form fails, you can complete a paper form and provide certified copies of documents.³

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Related questions usually asked - FAQs

Following are some commonly asked questions about a director ID in Australia.

What happens if you don’t apply for a director ID in Australia?

Severe penalties apply if you don’t apply for a director ID.

Under Australian Government legislative section s1272c, a criminal penalty fee of $16,500 applies. If it goes to civil court, the amount is $1,375,000.⁴

Can someone else apply for a director id on your behalf?

You’re the only person who can apply for a director ID, as your identity needs to be verified. An accountant or tax agent can advise you if you need one but cannot apply on your behalf.⁵

Does a director ID expire?

Once you have a director ID, you have it for life; it never expires.

The only time that it may be cancelled is if you applied in advance of expecting a directorship, but it never eventuated, and you held it for 12 months without it being used.

If you’re appointed as a director in the future, you can reapply, and the same number will be reinstated.⁶

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Sources:

1. ABRS about director id
2. ABRS who needs a director ID
3. ABRS apply for director ID
4. ASIC director ID
5. ABRS director ID FAQs
6. ABRS director ID scenarios

Sources checked on: 03 July 2023