Compulsory identification numbers are set to capture the operations of Australian company directors, clarify director connections, and disrupt phoenix activity.
The Director Identification Number (DIN) scheme has commenced, and deadlines are approaching for directors to acquire their unique number.
The DIN is a unique 15-digit identifier used to verify the identity of a company director or alternate director. The DIN is permanently assigned to the director for a lifetime and is administered by the Australian Business Registry Services (ABRS), overseen by the ATO.
Details on managing the DIN scheme, current requirements and applications are available from the ABRS. The scheme applies to a company, or to a registered Australian body or registered foreign company that is a body corporate.
Key dates
Since 1 November 2021 any newly appointed company director must submit their DIN application within 28 days. When the transition phase ends on 5 April 2022 it will be compulsory for a director to have a DIN application before an appointment can happen.
Existing Australian-resident directors (pre-1 November 2021) will have more time to apply, but should prepare before their application deadline on 30 November 2022.
Background
DINs are part of the Modernising Business Registers (MBR) program.
The single DIN will increase director accountability and traceability. DINs will help regulators detect, deter, and disrupt illegal actions such as phoenix activity where a company is liquidated, wound up or abandoned to avoid paying debts and new company is then started, continuing the same business activities without the debt.
DINs will prevent directors using false identities and enable regulators and law enforcement to trace a director’s connections across multiple companies.
Applying for your DIN
To be on the right side of the law, Australian existing and prospective company directors must provide standard identity documents when they apply for their permanent director identification number.
The required documents will depend on resident status and whether the application is via online, phone or paper. Some examples include:
Supporting documents such as a tax file number (TFN) and residential address as held by the ATO.
Identity documents – one primary, plus one or two secondary. See the following list for document examples but note that requirements vary per application method (phone applications require one secondary document but paper applications require two).
- Primary identity documents
(birth certificate; passport; Citizenship certificate or register extract; Immicard; or Visa)
- Secondary identity documents
(Medicare card; Australian driver’s licence or learner’s permit)
Responses to application questions (online, phone or paper)
Online applications are quick but require the creation of your myGovID as the first step.
DIN FAQs
I was made a company director decades ago – what happens to me?
Existing directors must apply for their unique DIN but will have more time. Prepare your relevant identification and myGovID account before the application deadline on 30 November 2022.
I’m a charity director – do the new rules include me?
You only need to apply for a DIN if you are the director of a charity or NFP that is a registered company – limited by guarantee under the Corporations Act 2001. The DIN will not be applicable to directors of incorporated associations under the State and Territory Associations Incorporation Act – unless those entities are a registered body with an ARBN.
I’m a director of a company governed by the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
The deadline for applications differs here. Directors appointed before 1 November 2022 need to apply by 30 November 2023. Appointments on or after 1 November 2022 need a DIN application before appointment.
As a registered Australian sole trader do I need a DIN?
No. If you are running a business as a sole trader or partnership you do not require a DIN (unless one of the participants in those structures is also a corporation).
I’m a foreign resident director, will it get complicated?
Existing foreign directors of Australian registered body corporates (pre 1 November2021) also have a 30 November 2022 deadline. They must apply on paper and the application needs relevant identification documents for foreign directors including certified copies and any necessary translation documents.
Compliance
Civil and criminal penalties can apply to non-compliance, and infringement notices will be issued where any person:
- knowingly applies for multiple DINs; or
- misrepresents a DIN to a commonwealth body, company or registered body.
The ABRS issues notifications if a person’s DIN is to be cancelled.
It is likely that in the future ASIC will require DINs to be filed, so companies should keep them on hand.
Advisors should take all reasonable steps to ensure clients comply with the legislation.
Deadline summary
Don’t delay your application.
| Australian Resident Director appointed | Deadline for DIN application |
| Before 1 November 2021 | By 30 November 2022 |
| 1 November 2021 to 4 April 2022 (inclusive) | Within 28 days of appointment |
| From 5 April 2022 onwards | Prior to appointment |
Disclaimer: This post is intended for general information only and is not intended to constitute legal advice. You should obtain appropriate professional advice for your circumstances.
