The recently launched director ID scheme aims to increase the accountability of directors and address illegal phoenix activity or where a new company, for little to no value, continues the business of an existing company that has been liquidated to avoid outstanding debts. Director ID’s will be made available publicly by the Australian Tax Office (ATO).
Directors must personally apply for their director ID and other individuals are not permitted to apply on behalf of another person.
Applications for a director ID opened in November 2021 through the new ABRS website. Applicants will need a myGovID. If applicants do not or cannot receive a myGovID, they can apply via phone if they have an Australian Tax File Number by completing a paper form.
Applicants may need to provide the ATO with the following information:
- full names and former names;
- current and former residential addresses;
- contact details;
- birth details (including date and place of birth);
- an Australian Tax File Number (optional); and
- answers to questions where the details are known by the ATO, such as super and bank account details.
Existing directors have until 30 November 2022 to apply for their director ID. Directors appointed between 1 November 2021 and 4 April 2022 will have within 28 days of their appointment to apply for their director ID. Directors appointed from 5 April 2022 must receive their director ID prior to their appointment.
Penalties will apply for director’s who fail to obtain their ID in time and additional penalties may apply if a director provides false or misleading information, applies for multiple ID’s or misrepresents their ID.
If you require more information on the new director ID’s, or are worried that these new director ID provisions may affect you or your business, please don’t hesitate to contact a member of the Bolter team.