Director ID regime takes shape as ATO assumes new registrar role which will help speed up compliance for businesses.
When it comes to managing your company’s finances, there are many important numbers that you should know. One such number is the director ID, a unique identifier that a director will apply for once and will keep forever. This identifies each individual in charge and ensures they can be traced back for any wrongdoing or fraud committed against an organisation with funds under it’s supervision.
The Australian government is set to implement a plan in hopes of improving the largely inefficient and complicated business registration process. The Director-General’s regime will cover 10% of Australia’s 25 million population, which should make it easier for people looking into starting up businesses here. Additionally, the ABRS (Australian Business Register Services) has been assigned with managing all three registers listed below; Company Names Register, director ID policies as well as Australian Business Numbers – this way they can streamline the interactions.
The Director Identification Number (director IDs) gives directors access to all sorts of services including one-time payments from employees, bonuses based on performance incentives, matching contributions made by volunteers, matching donations received through fundraisers.
If you’re a director of a corporate trustee of a self-managed super fund (SMSF) you will need to apply for a director ID. You will be able to apply for a director ID from November 2021 on the new Australian Business Registry Services (ABRS) online and will log in using the myGovID app (not to be confused with myGov which is for individuals). When you have to apply for a director ID will depend on the date you became a director. You will need to apply for your director ID yourself to verify your identity. No one can apply for it on your behalf. The introduction of director ID will create a fairer business environment by helping prevent the use of false and fraudulent director identities. This will go a long way to better identifying and eliminating director involvement in unlawful activities.
“This is a significant move towards the Morrison government’s goal of ‘digital first’ government services, offering faster, more convenient, and more cost-effective services to existing businesses and those looking to start a new business,” said the Minister for Superannuation, Financial Services and the Digital Economy, Senator Jane Hume.
“Efficient, online government services will help make it cheaper, faster, and easier to start and run a business in Australia. Modernising business registers with a one-stop-shop, replacing the current 31 registers, is part of our government’s commitment to Australia becoming a leading digital economy and society by 2030.”