Are you a Director? Time to get ready for the launch of Director Identification Numbers
As we begin the potentially long COVID-19 recovery, the Federal Government is making some crucial changes to minimise fraud and protect the privacy and security of Australian directors.
Part of this process has been the introduction of Director Identification Numbers (DIN) – a unique identifier that a director will keep indefinitely. This initiative has been designed to help stamp out illegal phoenixing and other fraudulent activity, enabling the government to verify and track individual directors’ corporate history accurately.
It is critical to understand your new obligations as a director, as failure to apply for a DIN within the required time frame will leave you open to criminal and civil penalties.
So, if you are a director or support your organisation’s directors, you must get across the requirements and prepare yourself for what’s to come.
Applications open on the 1 November 2021.
When do you need to apply?
When you need to apply depends on the date you were appointed as a director.
Existing Directors (appointed on or before 31 October 2021) will have until 30 November 2022 to apply and be able to apply from 1 November 2021.
So, we suggest that you sign up for your MyGovID now in preparation for the changes.
New Directors appointed between 1 November 2021 and 4 April 2022 will need to apply for their DIN within 28 days of their appointment. From 5 April 2022, you will need to apply before appointment.
New Directors appointed from 5 April 2022 onwards must have a Director ID before their appointment.
Civil and criminal penalties will apply where individuals:
- fail to apply for a DIN within the prescribed timeframes or if directed by the Regulator to do so;
- intentionally apply for more than one DIN;
- provide a false DIN; or
- are actively involved in the contravention of any of the above offences.
Johnston Withers Lawyers: Experience You Can Trust
For a more information on how to apply, who may be entitled to an extension and what the penalties are for non-compliance, please Andrew Mitchard on (08) 8231 1110 or contact us online.