As part of recent amendments introduced by the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth) in June, all persons holding the role of a company director, will soon be required to be identified by a unique “director identification number” (director ID).
A director ID is a unique identifier that you need to apply for once and keep permanently. Read here for more information on the benefits and requirements of director ID’s, and here for more information necessary for foreign directors.
There has now been further clarification regarding the penalties which will be imposed.
Directors who fail to apply within the time frame could face fines of up to 5,000 penalty units. Currently, penalty units are measured at $222 per unit for breaches of Australian Government Law, which means fines of up to $1.1 million may apply. There is also the consequence of possible imprisonment for up to 12 months.
Additionally, further penalties may be imposed on directors who knowingly apply for multiple director IDs, misrepresent their identification numbers to a Government or registered body, or provide false information during their application process.
Directors of a CATSI organisation formed under Corporations (Aboriginal and Torres Strait Islander) Act 2006 can face penalties of up to $200,000. Penalties will also apply for conduct that undermines the new requirements, including providing false identity information to the registrar or intentionally applying for multiple director IDs.
From 1 November 2021 to 4 April 2022 new directors being appointed to a company will have 28 days to apply for their director ID.
If you are unable to apply for a director ID within the required time frame, an extension can be applied for by downloading and completing an application form here.
Australian directors who are not able to apply via the myGovID app can call the Australian Business Registry Services and register over the phone. If you are unable to apply via the app or over the phone, you can download and complete an application form here and provide certified copies of your documents to verify your identity.
If you require assistance with the paper applications, or have any further enquiries, please contact your Pitcher Partners’ representative.