Blog Layout

Do you need a Director ID?

Nov 12, 2021

Directors are now required to register for a unique identification number that they will keep for life.

What is a director ID?

A director ID is a 15 digit identification number that, once issued, will remain with that director for life regardless of whether they stop being a director, change companies, change their name, or move overseas.


The introduction of the Director Identification Number (DIN) is part of the Government’s Modernisation of Business Registers (MBR) Program creating greater transparency, and preventing the potential for fraud and phoenix company activity. The MBR will unify the Australian Business Register and 31 ASIC business registers, including the register of companies. In effect, the system will create one source of truth across Government agencies for individuals and entities and will be managed by the Australian Taxation Office (ATO).


For those concerned about their privacy, the director ID will not be searchable by the public and will not be disclosed without the consent of the Director.
 

Who needs a director ID?

All directors of a company will need a director ID. This includes directors of a corporate trustee of a self-managed super funds (SMSF).
 
You do not need a director ID if you are running a business as a sole trader or partnership, or you are a director in your job title but have not been appointed as a director under the Corporations Act.
 
The company secretary or officeholder should keep a register of the IDs of their directors in a secure place - director IDs are governed by the same privacy rules that apply to Tax File Numbers (TFNs) and should not be disclosed unless required.


Timeframes for registration

If you became a director on or before 31 October 2021, you will have until 30 November 2022 to apply. If you became a director between 1 November 2021 and 4 April 2022, you will need to apply within 28 days of appointment, and if you become a director from 5 April 2022, you will need to apply before being appointment as director.


If the company intends to appoint new directors, it will be important to ensure that they are aware of the requirements and timeframes to establish their director ID if they do not already have one.
 

How to set up a director ID

If you are an Australian resident director, you will need to complete a number of steps and have a number of identification documents available and ready.
 

Step 1: Verify your identity

If you establish your director ID online, and you have not already set up myGovID, you will need to download the app onto your phone or device and create an account.
 
The myGovID does not create your director ID - the app’s only purpose is to validate your identity, and once validated, issue a code that can be used to identify you on government online services without going through the same verification process.
 
myGovID uses your phone/device’s camera to scan your forms of ID such as your passport, driver’s license and/ or VISA (
check the documentation requirements here), to validate who you say you are. Be careful when you are scanning your documentation as the system does not always read the scan correctly.
 

Step 2: Apply for your director ID through Australian Business Registry Services

Once you have set up your myGovID, you need to apply to the Australian Business Registry Services (ABRS) for your director ID. Use the email you used to create your myGovID to start the process.
 
In addition to your myGovID, you will need to have on hand documentation that matches the information held by the ATO. If you have a 
myGov account linked to the ATO, you can find the details on your profile. You will need:


  • Your tax file number
  • The residential address held on file by the ATO; and
  • Two documents that verify your identify such as:
  • Your bank account details held by the ATO (on your myGov ATO account, see ‘my profile/financial institution details’).
  • Dividend statement investment reference number
  • Notice of assessment (NOA) – date of issue and the reference number (on your myGov ATO account, see Tax/lodgements/income tax/history).
  • The gross amount from your PAYG payment summary
  • Superannuation details including your super fund’s ABN and your member account number

 
The final stage requests your personal contact details (not the company’s).
 
Once complete, your director ID will be issued immediately on screen. This information should be provided to your company secretary or office holder.
 
If any of your details change, for example a change of residential address or phone number, you will need to update your details through the ABR. You will also need to notify your company within seven days and the company will then need to notify the Australian Securities and Investments Commission (ASIC) within 28 days.

Applying by phone or using paper forms
You can choose to verify your identity and apply for your director ID by phone (13 62 50) or 
on paper. You will need to have your identification documents available. If you are applying using the paper form, your identify documentation will need to be certified by an authorised certifier such as a Barrister, Justice of the Peace etc.

How can we help
We are unable by law to apply for your DIN on your behalf, we are available to guide and support you through the process.

two birds looking at each other
By Lisa Cahill 07 Feb, 2023
From 1 January 2023, those 55 and over can make a ‘downsizer’ contribution to superannuation. Downsizer contributions are an excellent way to get money into superannuation quickly. And now that the age limit has reduced to 55 from 60, more people have an opportunity to use this strategy if it suits their needs.  What is a 'downsizer' contribution? If you are aged 55 years or older, you can contribute $300,000 from the proceeds of the sale of your home to your superannuation fund Downsizer contributions are excluded from the existing age test, work test, and the transfer balance threshold (but are limited by your transfer balance cap). For couples, both members of a couple can take advantage of the concession for the same home. That is, if you and your spouse meet the other criteria, both of you can contribute up to $300,000 ($600,000 per couple). This is the case even if one of you did not have an ownership interest in the property that was sold (assuming they meet the other criteria). Sale proceeds contributed to superannuation under this measure count towards the Age Pension assets test. Because a downsizer contribution can only be made once in a lifetime, it is important to ensure that this is the right option for you. Let’s look at the eligibility criteria: You are 55 years or older (from 1 January 2023) at the time of making the contribution. The home was owned by you or your spouse for 10 years or more prior to the sale – the ownership period is generally calculated from the date of settlement of purchase to the date of settlement of sale. The home is in Australia and is not a caravan, houseboat, or other mobile home. The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a post-CGT asset rather than a pre-CGT asset (acquired before 20 September 1985). Check with us if you are uncertain. You provide your super fund with the Downsizer contribution into super form (NAT 75073) either before or at the time of making the downsizer contribution. The downsizer contribution is made within 90 days of receiving the proceeds of sale, which is usually at the date of settlement. You have not previously made a downsizer contribution to super from the sale of another home or from the part sale of your home. Do I have to buy another smaller home The name ‘downsizer’ is a bit of a misnomer. To access this measure you do not have to buy another home once you have sold your existing home, and you are not required to buy a smaller home - you could buy a larger and more expensive one.
By Lisa Cahill 25 Oct, 2022
As expected, this year’s second Federal Budget had a strong focus on families, education, health and aged care, energy and affordable housing. From a superannuation perspective it has been a relatively quiet Budget but there were some welcome announcements that will benefit SMSF members funding their retirement. Please remember the following budget announcement are not yet law. Reducing the eligibility age for downsizer contributions The eligibility age to make downsizer contributions into superannuation is set to be reduced from 60 to 55 years of age. All other eligibility criteria will remain unchanged This change will provide a boost to the number of individuals eligible to make a one-off, post-tax contribution to their superannuation of up to $300,000, using the sale proceeds of their family home – regardless of their superannuation balance. Relaxing residency requirements for SMSFs Previously announced in the 2021/2022 Budget, the residency requirements applicable to SMSFs and small APRA funds were set to be relaxed through:  The extension of the central management and control test “safe harbour” from two to five years, and The removal of the “active member” test – which would allow members who are temporarily absent from Australia to continue contributing to their SMSF. Both of these proposals had been slated to commence from 1 July 2022. The Government has confirmed that these changes, broadly aimed at allowing greater flexibility for SMSF members who are temporarily overseas, are still set to go ahead. However the start date for both measures has been deferred. Incentivising Pensioners to Downsize The current Centrelink asset test exemption for proceeds from the sale of a family home, intended for the purchase of a new home, will be extended from 12 months to 24 months. Additionally, for income test purposes, only the lower deeming rate (currently 0.25%) will apply to these exempted proceeds over the 24-month period. These changes will allow pensioners more time to purchase, build or renovate a new home before their pension is affected. Increased Commonwealth Seniors Health Card income threshold The Government has confirmed its commitment to increase the income threshold for Commonwealth Seniors Health Card eligibility from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples. This change will increase the number of individuals eligible to benefit from a Commonwealth Seniors Health Card. Freezing of deeming rates The Government has also confirmed that it will freeze the social security deeming rates at their current levels until 30 June 2024. This change will support older Australians who rely on income from deemed financial investments, as well as the pension, to deal with the rising cost of living.
Woman running in sunset Fusion Partners Central Coast
By Lisa Cahill 01 Jun, 2022
Several key superannuation changes which may impact your ability to contribute to your SMSF, are set to take effect from 1 July 2022. These changes create opportunities for all SMSF members to grow their retirement savings.
Share by: