Director ID time frame revealed as business register enters next phase
Directors will now have a unique identifier, enabling government agencies to keep an eye on director activities.
The federal government's new business register system will be overseen by the Tax Commissioner and one of its first functions will be to roll out director IDs.
The Australian Business Registry Services (ABRS) will bring together ASIC's 31 business registers and the Australian Business Register into a new system at the Australian Tax Office, with the Tax Commissioner announced as its registrar. ASIC's registry staff will move to the ATO to help the Registrar, a move it says is a 'staffing change only'.
However, one of its first functions will be to roll out new director IDs.
Director IDs will follow a director
In a statement to the mybusiness.com.au website, Minister for Superannuation, Financial Services and the Digital Economy Jane Hume indicated director identification numbers (director IDs) will be the first new function of the ABRS to be delivered later this year and is a new requirement for all company directors.
"Director ID will be a unique identifier that a director will keep forever. An individual will keep their director ID even if they cease to be a director, change their name, or move interstate or overseas," Ms Hume said.
"Verifying the identity of directors is important for improving data integrity and helping regulators to detect and deal with illegal phoenixing activities. The Registrar will notify company directors of their obligations under the new director ID regime."
What do directors need to do?
At this point, directors do not need to take any action, as the ATO will soon begin testing its application process via a private Beta program. When applications are open, the ATO has said that directors will be able to use the ABRS online services by signing in via the myGovID app.
The ABRS is part of the Modifying Business Registers program which will be rolled out progressively between 2021 and 2024.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.