What is it and why?
Currently, there are over a hundred different company registers in Australia. Most of them managed by the Australian Securities and Investments Commission (ASIC) and some by other parties. As you can imagine, coordination of these registers has been problematic and it is not hard for the data to be updated at different points. Legislation was introduced to consolidate these 138+ registers into one register – The Australian Business Register. This will be managed by the Australian Tax Office.
Another benefit of doing this is the ability to positively identify a director and understand their involvement and history with corporate entities. This initiative will also contribute to addressing the practice of abandoning or closing down companies to avoid paying out liabilities (especially staff related liabilities), which is a practice referred to as Phoenixing. This illegal activity is aided by the anonymity of directors and it is hoped that this initiative will succeed in eliminating this practice. A unique director ID will stay with a person for life and you will only have one – just like your tax file number.
Who?
Firstly, your Agent can not register for you. You need to do this yourself as it requires the provision of key identification documents, and the legislation specifically prohibits agents doing this for directors. Luckily, there are several options
What do I need to do and when?
Firstly, your Agent can not register for you. You need to do this yourself as it requires the provision of key identification documents, and the legislation specifically prohibits agents doing this for directors. Luckily, there are several options
For more information and to access the forms, visit
Australian Resident – Digital Option
To take advantage of this option, you need to obtain a MyGovID. This is not the same as a MyGov account. It is an application that interacts with government websites and provides two-factor authentication. It may take a bit of time to arrange, but once completed, you can quickly apply for a unique director ID.
Australian Resident – Non-Digital Option
For those who are digitally challenged or just prefer to use paper, there is a form that can be downloaded. It will need to be sent with certified copies of identification documents and will take a bit longer.
Foreign Resident – Non Digital Option
As is the case with a number of Australian companies, if a director is a resident of another country, there is a specific form for this and as it is a manual process, it also requires certified copies of identification documents.
Timing
So… when do I need to do this by?
| If you are a Director | Then compliance required by… |
|---|---|
| Pre-November 2021 | By November 2022 |
| Between November 2021 and April 2022 | Within 28 days |
| Post April 2022 | Before appointment as a director |
What happens when I get my ID?
The Australian Business Register will not be implemented until late 2023, so in the meantime, you will need to ensure you have obtained a unique Director ID. Once you have it, keep it in a secure place and if OBB Accountants looks after your company secretarial needs, please send us a copy to keep on file and update the register when appropriate.
How can OBB Accountants help?
Whilst we can’t register for you, OBB Accountants is happy to help with providing information and assistance to aid you in obtaining your director ID. Until the Australian Business Register if implemented, all interaction with ASIC and the various registers remains unchanged.
When the register is implemented, where we look after your corporate secretarial, we will ensure your director ID is updated as appropriate.
If you have any questions at all, please don’t hesitate to contact us.
