Business in Australia (ABN):: Applying for your director ID
Hello, this is your tax and super specialist, P&C Tax Professionals.
During today’s blog post, we will take you through the steps on applying for a director ID which has now become compulsory for all directors who are running a business in Australia.
<What is the director ID and how does it work?>
Basically, a director identification number (known as a director ID) is a 15-digit unique identifier issued to a director (including people who are intending to become one) and which they will keep forever once initially issued.
This is even if they:
> Change companies
> Cease to be a director
> Change their name
> Relocate to another state or overseas
Therefore, if you are planning on becoming a director or if you already are one, you must apply for a director ID. The exact time as to when you need to apply will be based on the date on which you become a director.
With all directors in Australia having to apply for a director ID, the good thing about it is that it is literally free to apply.
<Who needs a director ID>
The people who would need a director ID are the following:
> A company: either a registered Australian body or a registered foreign company
> An Aboriginal and Torres Strait Islander corporation that is registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006.
An eligible officer is an individual who has been appointed as:
> A director
> An alternate director acting in the director’s capacity
An important point to note is that you must apply for your own director ID as your identity would have to verified by yourself, hence restricting anyone else to apply on your behalf.
<Why must we apply for a director ID?>
The reason why all directors in Australia must abide by the law to verify their identity with the Australian Business Registry Services (ABRS) is due to the following reasons:
> For the prevention of fraudulent and false use of director identities
> To allow external administrators and regulators to locate and trace directors’ relationships with companies more easily
> To help with the identification and elimination of directors’ involvement in unlawful activities.
<Applying for your director ID>
Step 1: Create a myGovID
> You would need a myGovID with an identity strength of at least Standard or Strong in order to apply for your director ID online.
> If you are located outside of Australia, making it difficult to obtain a myGovID with an identity strength of Standard or Strong, you will instead have to apply using a paper form with certified copies of your identity documents.
On the other hand, if you are located within Australia and you:
> Don’t have a myGovID --> You can set up your myGovID by downloading the app through the following link.
> Have a myGovID --> What are you waiting for? You can apply for your director ID right away.
Step 2: Prepare your documents
Information that will have to provided to the ATO so that the ATO would be able to identify you when you’re applying for your director ID are:
> your tax file number (TFN)
> your residential address as shown on the ATO portal
> information from two supporting documents which will help to verify your identity.
Examples of supporting documents you can use:
> details of your bank account
> an ATO notice of assessment (NOA)
> details of your super account
> a dividend statement
> a Centrelink payment summary
> a PAYG payment summary
Step 3: Complete your application
Now that you have set up your myGovID with a Standard or Strong identity strength and you have your documents and information ready to help verify your identity, you can now log in using your myGovID and apply for your director ID via the link below:
The process of the application is estimated to take less than 5 minutes.
I hope this blog post has helped you in understanding what a director ID is, why you would need one and how to apply for one.
If you have any further questions simply contact us through our Official Facebook Page (P&C Tax Professionals – Australia) or via our email address at pnctax@naver.com.
Thank you and bye for now!
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