New Requirements for Company Directors Under Federal Government’s Modernising Business Registers Program

All company directors now need to verify their identity, following the introduction of new requirements under the federal government’s broader Modernising Business Registers (MBR) program,

The MBR is designed to streamline how individuals register, view and maintain business information, as well as making business information more trusted. As part of this regime, the government also plans to move the companies register, business names register and ABN’s to the Australian Business Registry Services (ABRS) by 2024.

A company director is anyone who is a director of a company, a corporate trustee (eg. a director of a corporate trustee of a SMSF), a foreign company registered with ASIC and carrying on business in Australia, or various registered bodies.

If you are planning to become a director, you must apply for a director identification number (DIN) before your appointment. You can apply up to 12 months in advance of being appointed.

Applications for a DIN, with ARBS, can be made with the Australian Business Registry Services (ABRS). Directors are only required to apply once and it is free to apply.

Before a Director identifier (DIN) is given to a director (or someone who intends to become a director), they will be required by law to verify their identity before receiving a director ID.

The DIN consists of a unique 15-digit number, which starts with 036 (which is the 3-digit country code for Australia under International Standard ISO 3166) and ends with an 11-digit number and one ‘check’ digit for error detection. Directors will only ever have one director ID, which they will keep forever, even if they change companies, stop being a director, change their name or move interstate or overseas.

Apply online to receive a director ID. To complete an online application, the director will need a myGovID with a minimum of standard identify strenght. Once you have your myGovID, you need some more information that relates to you personally, not the company. to apply for a director ID. This information must relate to you personally, not the company you work for.account information to verify their identity by providing:

If you have a myGovID with a Strong identity strength, you only need to provide one of the following:

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

If you have a myGovID with a Standard identity strength, you need to provide:

• your individual TFN – optional but it will help speed up the process
• your residential address as held by the ATO
• information from 2 of the following documents to verify your identity, including:
• bank account details the ATO has on record – most likely where you’ve received a tax return refund in the last 2 years
• an ATO notice of assessment
• Australian Prudential Regulation Authority (APRA) super fund account details including super fund's Australian business number (ABN). Note: Self-managed super fund details are not accepted
• a dividend statement
• a Centrelink payment summary
• a PAYG payment summary – this is different to your income statement or your PAYG instalment activity statement.

• If applying over the phone, on 13 62 52, the above information will be required along with two Australian identity documents (one primary and one secondary). If you are calling from anywhere in  Australia, the telephone number is 13 62 50.
• If applying via a paper application, in addition to the information requested on the application form, directors will also need to provide certified copies of one primary and two secondary identity documents. (Original documents should not be sent, as these will not be returned to you).

Once a director ID has been issued, directors can update and manage their details with the ARBS; which must be notified within seven (7) days. (Note: This 7-day period to update director details with ABRS is less than the time period to notify changes in director details with the Australian Securities and Investments Commission, ASIC, which is within 28 days to avoid late fees.)

The DIN comes with certain obligations, such as applying within the relevant time frame, not applying for more than one DIN and not misrepresenting the DIN to any companies or registered bodies. Failure to comply can attract an infringement notice or, for more serious breaches, incur civil or criminal penalties.