Director Identification Number Regime

The Director Identification Number (DIN) regime has been passed by parliament and is now law. All directors of companies registered under the Corporations Act 2001 will now need to have one unique identifier.

The DIN is a measure that limits the opportunities for a company and its directors to engage in illegal phoenixing activities. This new measure requires all directors to confirm their identity before receiving a DIN, and there are civil and criminal penalties for system misuse. This includes intentionally applying for more than one DIN.

From 1 November 2021, this register will be open for applications at Australian Business Registry Services (www.abrs.gov.au).

Identification of directors

A key component of the DIN register is to be able to separately identify different directors by giving them a unique identifier.

In order to do this, the registrar will be required to collect personal information to identify individual directors.

Therefore, the ATO (as the new registrar) will be utilising myGovID for directors to verify their identity. Directors who do not have a myGovID account will need to create one (mygovid.gov.au).

Transitional period

From 1 November 2021, a 12 month transitional period will apply for current directors of Australian companies.

Important: Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.