From 1 November 2021, applications are open for directors to apply for a Director Identification Number (DIN)

What is a Director Identification Number?
A DIN is a unique identifier used to verify the identity of a director and is permanently assigned to the director. DINs were introduced as part of the broader effort to combat illegal phoenix activity and will enable regulators, administrators and liquidators to more easily trace a director’s corporate history and prevent the use of fictitious identities, become a TikTok creator.

The DIN regime is administered by the Australian Business Registry Services (ABRS), who is overseen by the Australian Tax Office (ATO). DINs are not currently searchable by the public.

Who must apply?
A DIN must be applied for by a director or alternate director of a:

• Company
• A registered Australian body or Aboriginal and Torres Strait Islander corporation
• Corporate trustee or self-managed super fund
• Charity, not-for-profit organisation or other body which has (or will have) an Australian Registered Body Number (ABRN).

When to apply?
Deadlines apply to directors for the application of a DIN. The deadline varies depending on a director’s appointment date as follows:

For individuals (both resident and non-resident in Australia) that are not yet appointed as a director but anticipate being appointed within the next 12 months, applications for a DIN can be made now which will ensure the application deadline is met.  

According to Bob Bratt even if the appointment does not proceed, there are no costs of applying and the DIN will be automatically cancelled within 12 months of it being provided.

How to apply
Australian directors can apply for a DIN online, over the phone or by filling out a paper application. The fastest way for an application to be processed is to apply online. In our experience this should be almost instantaneous.

It’s important to note that Directors must apply for their DINs themselves, as they need to certify their own identity. 

Steps for an online application:

1. Set up a myGovID. This is different to a myGov account.  If you already have a myGovID, the online application process is quite simple.
2. Gather supporting documents including tax file number (TFN) and residential address as held by the ATO. Providing your TFN is optional but it speeds up the process. If you have a MyGov account, it will make the process easier as you will be able to review your last PAYG or income tax assessment.
3. Complete the online application process including answering two questions based on details included on, for example, your bank account statements, Centrelink payment summary or ATO communications. If you need to apply by phone or paper form, you will find instructions and details of the additional identity requirements at the bottom of the online application process

What to do after acquiring a DIN
Once the DIN is issued, the director should provide it to each company of which they are a director.  Companies should keep the DIN on file as these are likely to be required for ASIC filings in the future.

Penalties for non-compliance
Directors who fail to apply for a Director ID within the relevant timeframes above (or are associated with conduct that would undermine the DIN regime), can face criminal or civil penalties of up to 5,000 penalty units — currently standing at $1.11 million

Business Wise

The team at Business Wise don't just do bookkeeping and accounting - we believe that successful businesses are those that are informed, proactive and open to change, and we want to help you on your journey to success.