Director’s ID - you now need one

1 November 2021 by Simone Pentis

From 1 November 2021 Directors in Australia now need to have a Director’s ID.

 This has been introduced as a way to help prevent people undertaking illegal activities such as phoenixing. This generally being where a director liquidates a business and transfers its assets to continue operations with a new company without any consideration of its creditors, who may have large amounts owing and never paid.

 This is different from restructuring, which is allowed under strict criteria to help troubled businesses enter a restructuring plan with creditors and enable the business to survive in another form.

 There are different due dates for getting this done depending on when you were appointed a Director if you are about to.

 If you have been appointed a director between today, 1st November 2021 – 4 April 2022, you have 28 days after your appointment to apply. After 4th April 2022 you have to get it done before you become a director.

 However, if you are already prior to 1 November 2021 an director, then you have until 30 November 2022 to get the ID. Current directors of Aboriginal and Torres Strait Islander companies have an additional 12 months to apply.

 To apply you can visit the government’s website at  https://www.abrs.gov.au/director-identification-number/apply-director-identification-number, otherwise if you need more information or help please get in contact.