DIN update – deadline approaching for Australian company directors

The deadline to obtain a Director Identification Number (DIN) is fast approaching.   Directors of Australian Company’s appointed on or before 31 October 2021 must apply for a DIN by no later than 30 November 2022.  This DIN is valid forever, regardless of whether the director ceases to be a director of one particular company, is appointed to other companies changes their name or moves interstate or overseas.  This article provides an overview of why DIN’s are necessary and provides you with the things that you need to do to get one.

Why is a DIN necessary?

Consumers, employees, shareholders, creditors and external administrators are entitled to know the identities of the directors of a company.  This follows from the rise in corporate fraud and identity theft.  This is important as it:

• provides those dealing with a company with some comfort that they are actually dealing with the listed director;
• allows external administrators and regulators to track director’s; relationships with companies; and
• identifies and prevent any director involvement in unlawful activities.

 Who needs a DIN?

 A DIN is necessary for an eligible officer of:

• a company registered under the Corporations Act 2001 (Cth) (Corporations Act); and
• an Aboriginal and Torres Strait Islander corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.

An eligible officer is a person who is appointed as either a director or an alternate director who is acting in that capacity.

When must a DIN  be applied for?

You can apply for a DIN  at anytime however, the deadline for applications is determined by the date on which an individual was appointed as a director and under which Corporations Act.

Date of appointment as a director	DIN  application deadline
On or before 31 October 2021	By 30 November 2022
Between 1 November 2021 and 4 April 2022	Within 28 days of appointment as a director
From 5 April 2022	Before appointment as a director

Should a director fail to provide a DIN when required, they commit an offence under  Section 1272C of the Corporations Act.  Civil penalties up to $1.1 million and criminal penalties up to $13,200 may apply.  So it’s something that Directors really have do to!

What is the Registrar?

The Registrar refers to the Registrar of the Australian Business Registry Services (ABRS).  The Registrar is responsible for:

• leading the Modernising Business Register (MBR) program;
• performing statutory registry functions; and
• exercising powers under the relevant laws.

How to apply for a DIN

There is no fee to apply for a DIN.  Applications are available through the electronic platform provided by the Registrar which can be accessed at:

https://www.abrs.gov.au/director-identification-number

To complete your application, you must first have a myGovID before starting the process – apply for one here: https://www.mygovid.gov.au/set-up

Be warned this is likely to take some time as even the most organised and diligent person with the right information at their fingertips can experience challenges such as being locked out of the authentication process.  So allow yourself a couple of uninterrupted hours to jump through all the hoops!

It is a requirement that a person apply for a DIN themselves so that they can elect from a variety of methods of verifying their identity.  However, if the Registrar is satisfied that the director is unable to make the application themselves, it may be made on their behalf.

To assist you with the application process, the ATO has published a demonstration video explaining how to apply for a DIN which can be accessed at: www.abrs.gov.au/video-how-to-apply-director-id.  ASIC has also provided a newsletter containing tips on how to get your DIN online which can be accessed here.

What do directors need to provide?

Provided that you already have a MyGov ID, the Registrar may request the following documents for identity verification purposes when applying for a DIN:

• names and former names;
• addresses and former addresses;
• contact details;
• date and place of birth; and
• the bank account number that you have recorded with the ATO where to pay a tax refund (if any);
• your superfund ABN and member account number;
• the amount of one or more tax return(s); and
• tax file number.

You  also need to have a personal MyGov ID and ideally have downloaded the App for this on your Apple of Android Device.  When making an application, you must make a declaration that:

• you are the applicant identified in the application;
• the information provided is true and correct;
• you are an individual that is an eligible officer, or intends to become an eligible officer within twelve (12) months of applying for a DIN; and
• you don’t not already have a DIN, or you have been directed by the Registrar to apply, (or apply again), for a DIN.

When applying for a DIN its best to have all of your personal identifying information to hand as there are numerous different ways that you can be verified.

Links and further references

Important links

Apply for your director ID – ABRS

Legislation

Corporations Act 2001 (Cth)

Corporations (Aboriginal and Torres Strait Islander) Act 2006

Further information about Directors Identification Numbers

If you are an existing client of Dundas Lawyers and need advice or assistance with applying for a DIN, contact us for a confidential and obligation-free discussion:

Disclaimer

This article contains general commentary only.  You should not rely on the commentary as legal advice.  Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.

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