Do You Need a Director Identification Number?
If you want to become a director of company or you are already one, you’ll need a director ID. Director’s are urged to apply for a Director identification number before its deadline on 30 November 2022. This new initiative has been introduced by the Australian Taxation Office as an effort to make businesses more transparent, prevent the use of false or fraudulent director identities, and help combat illegal phoenix activities.
Who needs to apply for a Director ID?
You will need to have a DIN if you are :
- Appointed as a director of a company registered in Australia
- Appointed as a liquidator or provisional liquidator of a company
- Appointed as a trustee of a corporate trust
- An officer of a registered scheme
- A responsible entity of a registered scheme
- A receiver, manager or administrator of property of a company under external administration
You will not need a DIN if you are:
- Appointed as a special purpose liquidator
- Appointed as a deed administrator
- Appointed as an administrator (other than of property) of the estate of an individual under external administration
How to apply for your Director ID?
Step 1: Set up myGovID (note this isn’t MYGOV app)- To set up a myGovID with a standard identity strength, you’ll need at least 2 Australian identity documents such as a tax file number, notice of assessment, super account details, bank account details, dividend statement, centrelink payment summary or PAYG payment summary.
Step 2: Gather your paperwork - The ATO needs information about you that pertains to you personally rather than the organisation of which you serve as a director.
Step 3: Complete your application – Visit - https://bit.ly/3gBRAjf. You can also apply over the telephone or via a paper form.
Step 4: Provide the DIN to your accountant.
Conclusion
This unique 8-digit Director Identification Number (DIN) helps to keep track of your appointments and ensures that all information about directors is kept up to date. To apply for your DIN, simply complete the online application form and provide the required proof of identity documents.
Once your application has been processed, you will receive your DIN in the mail. Once you have your director ID you need to supply the number to your accountant. The number should be kept in a safe place where it is not easily accessible by others.
The team of business and tax accountants at Wardle Partners Accountants & Advisors can assist you through the process of setting up your Director ID in no time. Contact us today!
