In the 2020 federal budget, as part of its Digital Business Plan, the government announced the full implementation of the Modernising Business Registers (MBR) Program. This program unifies the Australian Business Register and 31 business registers administered by ASIC into a single platform and introduces the director ID initiative.<\/p>\n\n\n\n
Director IDs are intended to prevent false or fraudulent registration of directors, to enable regulators to better trace directors\u2019 relationships with companies, so as to facilitate accountability and traceability. Director IDs will also assist the reduction in phoenixing activities whereby a company is deliberately placed into liquidation, wound up or abandoned to avoid paying its debts (such as superannuation owed to employees, tax owed to the ATO, or debts owed to suppliers\/contractors). Under phoenixing, a new company is then started to continue the same business activities\u2026but without the debts.<\/p>\n\n\n\n
Who needs to apply?<\/strong><\/h2>\n\n\n\nThe table on the following page outlines who is and is not required to apply for a director ID. As can be seen, it applies not only to company directors, but to non\u0002business people as well.<\/p>\n\n\n\n
When do you need to apply?<\/strong><\/h2>\n\n\n\nThe time by which a director ID application must be made depends on the date of appointment as follows:<\/p>\n\n\n\nDate of appointment<\/strong><\/td>Date for director ID application<\/strong><\/td><\/tr>On or before 31 October 2021<\/td> By 30 November 2022<\/td><\/tr> Between 1 November 2021 and 4 April 2022<\/td> Within 28 days of appointment<\/td><\/tr> From 5 April 2022<\/td> Before appointment<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nTherefore, there is some urgency if you are a newly\u0002appointed director from 1 November 2021\u2026you may need to apply for a director ID within 28 days of your appointment.<\/p>\n\n\n
\n![\"Director](\"https:\/\/mnygroup.com.au\/wp-content\/uploads\/2021\/12\/id-g1ec00e1e3_1920-1024x660.jpg\")
<\/figure>\n<\/div>\n\n\nHow do you apply?<\/strong><\/h2>\n\n\n\nDirectors will need to apply for a director ID themselves in order to verify their identity. This means that advisers and accountants\/tax agents are unable to apply for a director ID on behalf of their director clients.<\/p>\n\n\n\n
The time by which a director ID application must be made depends on the date of appointment as follows:<\/p>\n\n\n\n Therefore, there is some urgency if you are a newly\u0002appointed director from 1 November 2021\u2026you may need to apply for a director ID within 28 days of your appointment.<\/p>\n\n\n Directors will need to apply for a director ID themselves in order to verify their identity. This means that advisers and accountants\/tax agents are unable to apply for a director ID on behalf of their director clients.<\/p>\n\n\n\nDate of appointment<\/strong><\/td> Date for director ID application<\/strong><\/td><\/tr> On or before 31 October 2021<\/td> By 30 November 2022<\/td><\/tr> Between 1 November 2021 and 4 April 2022<\/td> Within 28 days of appointment<\/td><\/tr> From 5 April 2022<\/td> Before appointment<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/figure>\n<\/div>\n\n\nHow do you apply?<\/strong><\/h2>\n\n\n\n