What Every Australian Director Needs to Know
If you’re a director of an Australian company – or about to become one – you need a director ID. It’s not optional, it doesn’t expire, and you can’t have someone else apply for it on your behalf. Here’s what it is, why it exists and how to get one.
What is a director ID?
A director identification number (director ID) is a unique 15-digit identifier assigned to every individual who acts as a director of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation.
Once you have a director ID, it stays with you permanently – across every directorship you hold, past and future. You never need to apply for a new one, even if you change companies or step down and return to a director role later on.
The 15 digits break down into three parts: a three-digit country code (036 for Australia, per International Standard ISO 3166), an 11-digit unique number and a single check digit used for error detection.
Why was the director ID introduced?
The director ID scheme was introduced to tackle director fraud – specifically practices like appointing “dummy directors” who are unaware of their appointment and used as a fall guy if a company runs into trouble. It also helps regulators trace directors across multiple entities and identify patterns of phoenix activity, where directors strip assets from a failed company and restart under a new one.
In short, it creates a verified, permanent link between a real person and their directorship history.
Do I need a director ID?
Yes, if you are currently a director or are about to be appointed as one. All directors of the following types of entities are required to hold one:
- Companies registered with ASIC
- Registered Australian bodies
- Registered foreign companies
- Aboriginal and Torres Strait Islander corporations registered under the CATSI Act
If you became a director after 5 April 2022, you were required to obtain your director ID before being appointed – meaning you need one in place before you take on the role, not after.
What happens if I don’t have one?
Penalties of up to $13,200 can apply for failing to have a director ID when required. Separate criminal penalties also exist for providing false information during the application process or intentionally applying for multiple director IDs.
If you’re an existing director and haven’t yet applied, you should do so as soon as possible. The ABRS (Australian Business Registry Services) is the body that administers the scheme, and late applications can be made – but the longer you leave it, the greater the risk of enforcement action.
Your accountant can help you work out whether you need one, but the application must be completed by you personally. It cannot be done on your behalf.
How do you apply for a director ID?
The application is done online through the Australian Business Registry Services (ABRS) website and takes around 10 minutes if you have your documents ready.
What you’ll need:
- Your Tax File Number (TFN)
- Proof of your residential address held by the ATO
- Two identity verification items from your ATO record – choose any two from: your most recent Notice of Assessment, a PAYG payment summary, a dividends statement, a Centrelink payment summary, bank account details held by the ATO, or superannuation account details
Before you start, make sure you have a myGovID. This is different from your personal myGov account – it’s a separate digital identity app you download to your smartphone. If you don’t have one yet, set it up using your Australian identity documents (passport, driver’s licence or Medicare card) before heading to the ABRS website.
Then:
- Go to the ABRS website and log in using your myGovID
- Complete the director ID application form
- Verify your identity using the documents above
- Your director ID will be issued on the spot in most cases
The ATO has a short walkthrough video on the process if you’d like to see it in action before you start.
A few things worth knowing
- Your director ID is yours alone – it cannot be shared with or transferred to anyone else
- You only ever have one director ID, even if you hold multiple directorships
- Your accountant or tax agent cannot apply for it on your behalf – this is a deliberate design feature of the scheme
- Once issued, your director ID does not expire and does not need to be renewed
If you’re setting up a new company or onboarding additional directors and want to make sure your company structure and compliance obligations are properly sorted, our company setup and advisory services are a good place to start. Book a call with us if you’d like to talk it through.
This article is general information only and isn’t personal tax, financial or legal advice. Please speak to us if you’d like advice specific to your situation.
