Implementation of the Director Identification Number (DIN) regime commences from 1 November 2021.
What is a Director Identification Number (DIN)?
A DIN is a unique identifier that a company director will apply for once and keep forever, even if they cease to be a director, change their name, or move interstate or overseas. The DIN regime is intended to help address illegal pheonixing activities by increasing Director accountability and traceability.
DIN’s will be administered by the Australian Business Registry Services (ABRS) which will be managed by the Australian Taxation Office (ATO).
The new DIN requirements apply to appointed Directors and acting Directors of Australian corporations and registered foreign companies under the Corporations Act 2001 (Cth). This includes companies responsible for managed investments schemes and registered charities. Currently, the requirements do not extend to unincorporated bodies and defacto or shadow Directors or Company Secretaries.
It is important to note that at this stage, the law doesn’t authorise a person(s) to disclose DINs to the public without the director’s consent. Further, until the ABRS consult the community regarding what details can be searched via public record, DIN’s will not be searchable by the public.
It is essential that those impacted comply with this regime, as non-compliance may result in civil and/or criminal penalties.
How will the regime be implemented?
The implementation of the DIN program is proposed to be as follows:
- New directors appointed between 1 November 2021 and 4 April 2022 will have just 28 days after appointment to apply for their DIN;
- New directors who are appointed from 5 April 2022 onwards will be required to apply for their DIN before appointment as a Director;
- Existing directors will have a year to apply for their DIN.
How do I apply for a Director Identification Number (DIN)?
Given DIN’s are a personal identification number, individuals must apply for a DIN themselves. It is understood that there will be three ways that applications can be made:
- Via your myGovID with approved identity documentation;
- Over the phone with your tax file number (optional) and address details along with answering questions and provision of identify documentation;
- Paper application with certified identity documentation.
For more information on how to apply, visit the ABRS website here.
Contact Davidsons for Further Assistance
A note to our valued clients, we will be in contact with you when the time comes to work you through what you need to do to comply with the new regime. If you are not a client of Davidsons and you are unsure as to how this regime may apply to you, please feel free to contact our office on 03 5221 6399 or at email@example.com.
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Disclaimer: This information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.