If you are a director of an Australian company, it is mandatory that you obtain a director identification number (Director ID) before the relevant deadline. A director ID has been introduced by the Australian government to have greater transparency around the background of a director to reduce phoenix activities that have taken place in the past.
A director ID number is for life and does not incur any costs in obtaining it using the ABRS website by following some simple steps. It is considered a criminal offence if you do not apply on time and there are heavy penalties that are imposed on directors who do not adhere to this requirement. Three easy steps can be followed to obtain your Director ID;
Step 1: Logging into your myGovID. If you do not already have a myGovID, you will have to sign up for one by following the link https://www.mygovid.gov.au/set-up.
You will require 2 of the following to verify your identity in order to set up a myGovID. These include:
- Driver’s licence or learner’s permit
- Passport (not more than 3 years expired)
- Birth certificate
- Citizenship certificate
- Medicare card
- Visa (using your foreign passport)
Step 2: Gather your documents. You will need process along with some form of verification document to prove your identity. This should include some information the ATO knows about you. These include:
- Your tax file number (TFN)
- Your residential address as held by the ATO
- Information from 2 documents to verify your identity. Please choose 2 documents from below.
- ATO notice of assessment
- Superannuation account details
- Dividend statement
- Centrelink payment summary
- PAYG payment summary
Step 3: Completing your application. Once your myGovID is linked and you have verified the identity, by simply following the link provided and fill in relevant details and you will be able to complete the director ID process.