From November 2021, the Australian Government is set to roll out Director Identification Numbers (“DIN”) initiative to help combat the rise of fake director registrations and illegal pheonixing activity.
What is a DIN?
DINs are a unique identifier which will be attached to an individual director for the rest of their lives, even when they cease to be a director. Directors will need to verify their identity as part of a new director ID requirement which is expected to increase director accountability and traceability.
DINs will apply to anyone who is appointed as:
a director of a registered body; or
an alternate director acting in that capacity.
A registered body includes a company, registered foreign company, corporate trustee, not-for-profit organisation or any other registered Australian body.
Unincorporated bodies, defacto or shadow directors and company secretaries are not required to obtain a DIN.
What are the relevant dates?
Type of directorship | Must apply for a DIN by: |
Existing directors | 30 November 2022 |
Directors appointed between 1 November 2021 and 4 April 2022 | Within 28 days of appointment |
Directors appointed from 5 April 2022 | Before appointment |
What are the penalties for non-compliance?
Penalties will apply when an individual:
fails to apply for a DIN;
provides a false DIN; or
intentionally applies for more than one DIN.
For companies registered under the Corporations Act 2001 (Cth), directors face potential civil penalties of up to 5,000 penalty units, or $1.1 million.
How do I apply for a DIN?
Directors will need to apply for their own DIN personally by complying with the following steps:
Set up myGovID to apply for your director ID (note: myGovID is different from myGov, it is an app you download on your smart device);
Ensure you have the required documentation to provide the ATO via the app; and
Complete the application, which should take less than 5 minutes.
Directors residing outside Australia will be required to complete a paper application and provide certified copies of one primary document and one secondary identity document.
If you have any questions about DINs and how to apply, please get in contact with a member of our corporate and commercial team.
Brad Clark, Partner (07) 3307 4527 bclark@shandtaylor.com.au
Patrick Sherlock, Senior Associate (07) 3307 4542 psherlock@shandtaylor.com.au
Annie Xu, Solicitor (07) 3307 4550 axu@shandtaylor.com.au