Over the last year, you would have received information in relation to director identification numbers, abbreviated to DINs or Director IDs.
There have been a number of transitional provisions in relation to when directors, and potential directors, would have to apply for a Director ID. The Australian Business Registry Services have now recently announced the final timetable for application.
This article only relates to directors of a company, registered Australian body, or registered foreign company under the Corporations Act.
All directors of clubs which are companies limited by guarantee will need DirectorID.
Directors themselves will have to apply for their own DirectorID as they will need to verify their own identity.
Timetable for obtaining a DirectorID
The final timetable for when a director must have a Director ID is as follows:
|Date you became a director
|Date for your application
|On or before 31 October 2021
|By 30 November 2022
|Between 1 November 2021 and 4 April 2022
|Within 28 days of appointment
|From 5 April 2022
To apply for a Director ID, a director will need to set up their own myGovID. Please note, this is different from your myGov account. The difference is described by the ABRS as follows:
“myGovID is an app you download to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov. myGov is an account that lets you link to and access online services provided by the Australian Taxation Office (ATO), Centrelink, Medicare and more.”
To be able to create a myGov ID, a director will need:
- their tax file number;
- residential address as held by the ATO; and
- information from two documents to verify their identity.
Examples listed by the ABRS to be able to verify identity are as follows:
- bank account details;
- an ATO notice of assessment;
- super account details;
- a dividend statement;
- a Centrelink payment summary; or
- PAYG payment summary.
A director applies for their myGovID online through a smart device and email address. They have to download an app to the device and follow the prompts. This link will take you to the web page with the app for apple and android devices and steps to obtain a myGovID:
The ATO will use information on these forms of identification and see if it matches its own records. For example, in relation to bank accounts, a person applying for a myGovID will need to submit details of a bank account that received an income tax refund or has earned interest in the last two years. The ATO then verifies that information against its own records.
Once a director has a myGovID, then from November 2021, they will be able to apply for their Director ID online. The ABRS says that this process should take less than 5 minutes.
Can’t get a myGovID?
If a director can’t get a myGovID, there are two further options:
- From November 2021, a director can apply by phone with a tax file number and documents needed to verify their identity.
- If a director can’t apply online or by phone, they can apply using a paper form. The ABRS says this will be a slower process and the downloadable application form will not be available until November 2021.
Importantly, for both the phone application and paper application, you will need to still verify your identity.
Once a director has their director ID, they must pass it on to the club.
What to do now?
In our experience, the vast majority of club directors will need to apply for their DirectorID by 30 November 2022, as the vast majority will have become a director on or before 31 October 2021.
Accordingly, directors and clubs need to now consider the best way they can apply for director IDs, i.e. whether this will be done online by applying for a myGovID or by other methods.
What to do for new directors?
Clubs will need to ensure that new directors elected between 1 November 2021 and 4 April 2022 apply for their Director ID within 28 days of appointment.
However, from 4 April 2022, clubs will need to ensure that every nominee for election to the Board who is not a director has at least applied for their Director ID prior to the annual general meeting where the results will be declared. Otherwise, a person who receives the required number of votes will not be eligible to be a director. Nomination forms will have to be amended to reflect this new requirement.
Clubs can also consider amending their constitutions to provide that nominees obtain their Director ID before the close of nominations, to ensure that applications have been lodged and determined before the meeting.
If a casual vacancy arises, clubs will need to ensure that any member who may be appointed has applied for their Director ID before appointment. This will apply to appointments made both under a casual vacancy rule in a constitution and under the Registered Clubs Act and Regulation.
Further Information and Contact Details
Should you wish to discuss any aspect of this Newsletter or want any legal advice about these matters, please contact any member of the Clubs team on 8251 7777 or by email: