What is a director ID and who needs to have one?28 October 2022
It’s important that any Nominated Officers and Relevant Persons associated with a labour hire licence meet their legal obligations – if you are a Director of the licence holder, this will soon include obtaining a director identification number (Director ID) where required.
Any directors appointed under the Corporations Act 2001 may face serious penalties if they do not obtain a director ID by 30 November 2022 – this includes directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation.
Note that the Labour Hire Authority (LHA) does not currently collect director ID information, and will advise providers should this change in the future.
Why do I need an ID?
A director ID helps to ensure companies remain transparent about who is involved in their operations. It allows regulators to trace directors’ relationships with companies over time, identify any illegal activity, and prevent false or fraudulent director identities.
Directors will keep their unique 15-digit number forever, regardless of whether they move onto other companies in the same capacity.
How to apply for a director ID
You can apply through Australian Business Registry Services (ABRS) in three steps.
- You will need a mygovID, with at least standard identity strength, to apply for your Director ID – the Australian Taxation Office has more information on their website.
- Gather documents with personal information that the ATO has about you.
- Lodge your application online for a director ID using your mygovID.
Click here for more details on the application process.
Once you receive your director ID, you must pass it on to the company’s responsible record-holder. You must also pass it onto to the record-holder of subsequent companies you direct in the future.
What are the penalties for not having a director ID?
In 2022 ABRS announced four new offences for not having a Director ID under the Act.
Penalties can range up to $1,100,000 if existing directors do not have a director ID in place by 30 November 2022.