Last October, we sent out an alert regarding the implementation of Director identification Numbers (“DIN”) and the need for directors and soon-to-be directors to apply. As the deadlines draw closer the risk of non-compliance is becoming a reality.
Refresher on DINs
DINs are a unique identifier that will attach to individual directors forever in an effort to prevent fraud and increase traceability and accountability.
DINs will apply to anyone who is appointed as:
a director of a company, not-for-profit organisation or any other registered Australian body; or
an alternate director acting in that capacity.
Unincorporated bodies, de facto or shadow directors and company secretaries are not required to obtain a DIN.
Deadlines
As mentioned in our last article, the following deadlines will apply:
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 |
Importantly, 5 April 2022 will mark the end of the transitional period which allowed directors appointed between 1 November 2021 and 4 April 2022 a 28-day timeframe from when they were appointed to apply for a DIN.
In just a few days of this article being published, anyone looking at becoming a director will need to apply for a DIN prior to appointment.
Penalties
Those that fail to meet these requirements can expect serious financial penalties. We expect that ABRS and ASIC intend to take a tough approach to ensure stakeholders take this issue seriously.
How to apply
Directors will need to apply for their own DIN personally by completing the following steps:
Set up myGovID to apply for your director ID;
Ensure you have the required documentation to provide the ATO via the app; and
Complete the application, which should take less than 5 minutes.
Please feel free to give Shand Taylor Lawyers a call to discuss any queries you have with a member of our corporate and commercial team.
Brad Clark, Director (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.a