SMSF Trustees Reminder to Apply for Director IDs

Posted January 19, 2022

SMSF trustees: reminder to apply for director IDs

Directors of corporate trustees of SMSFs should be aware that the director identification regime is now in force. Depending on when you became a director, the deadline for application is either November 2022 or within 28 days of the appointment. The application process itself is easy and can be done online through the new Australian Business Registry Services (ABRS). Once you receive it, this 15-digit identification number will be permanently linked to you even if you change companies, stop being a director, change your name, or move interstate or overseas.

The director identification regime is now in place. If you’re a director of a corporate trustee of an SMSF, you’ll need to apply for a director ID number online through the new Australian Business Registry Services (ABRS) before the deadline. A director ID is a 15 digit identifier given to a director (or someone who intends to become a director) that has verified their identity with ABRS.

Generally, a director ID starts with 036 and ends with an 11-digit number and one “check” digit for error detection. Each director will need to apply for their own ID, so that if there is 2 or more directors for the corporate trustee of your SMSF, each director will need to apply separately. The process is entirely free, and the number that is assigned will be permanently linked to the individual. This is the case even if the individual changes companies, stops being a director, changes name, or moves interstate or overseas.

Depending on when you became a director, the deadline for obtaining the director identification number will differ. Individuals that became directors of a corporate trustee before 31 October 2021, will have until November 2022 to apply. Any individuals that are appointed to be a director of a corporate trustee between 1 November 2021 and 4 April 2022 will need to apply within 28 days of their appointment. After 4 April 2022, individuals seeking to be appointed to be directors of a corporate trustee will need to apply for a director ID before being appointed.

The director ID regime was implemented as a way to prevent the use of false or fraudulent director identities, make it easier for external administrators and regulators to trace directors’ relationships with companies over time, and identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity.

To apply for your director ID, you will need to first set up myGovID, which is different to myGov. The myGovID is an app that you need to download onto your smart device and confirm your identity in using standard documents (ie drivers licence, passport, etc). When your identity is authenticated, you’ll be able to log onto a range of government services including the online director ID application with ABRS.

Note however, to complete the application, additional information such as TFN, residential address as held by the ATO, and/or information from 2 documents to verify your identity including: bank account details; ATO notice of assessment; super account details; a dividend statement; Centrelink payment summary; or PAYG payment summary.

Once you receive your directors ID, you will need to pass it onto the record-holder of the corporate trustee, which may be the company secretary, another director, a contact person, or an authorised agent of the company. If the corporate trustee changes or you become the director of another company, you will need to pass on this information to the new corporate trustee or the other company.

Going forward, you will also be able to log on to ABRS and update your details if required, however, if your personal details change, such as your name, role or address, you must still notify the corporate trustee within 7 days. This is to enable relevant company officeholder(s) enough time to notify ASIC of the change, which typically needs to occur within 28 days to avoid late fees. Currently, director IDs are not searchable by the public, however, the Registrar (ie Tax Office Commissioner) will be consulting the community about what details can and should be disclosed and searchable in the future.

Need help?

If you need help with the director ID regime or any other SMSF related matters including general administration or audit, we have the expertise to assist. If you are having issues with any aspect of running your SMSF, contact us today.