With nearly 14,000 businesses operating in the Cairns region, it’s no wonder that accountants have been inundated with calls about the new requirement for directors in 2022.
The word has been out for a short while now about the new requirements for all Australian directors to apply for a director ID. For those yet to apply, be aware of your legal requirement to obtain your ID before a certain date. As notified by the Australian Securities & Investments Commission (ASIC):
All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander corporation will need a director ID.
New directors appointed between 01NOV2021 and 04APR2022 are required to apply within 28 days of appointment. Specific conditions apply for different appointments, therefore it is advisable that you are aware of all your obligations with respect to your application.
Existing directors appointed on or before 31OCT2021 must apply by 30NOV2022.
Directors appointed for the first time on or after 05APR2022 must apply before being appointed.
What is a director ID?
Registered through Australian Business Registry Services (ABRS), a director identification number is a 15-digit identifier required by all Australian directors, or a person who intends to become a director.
Why do we need a director ID?
I have received a number of calls from my Cairns clients asking about the sudden requirement for a director ID. In short, it’s been a long time coming. The new change in legislation will essentially:
- Help to reduce unlawful activity conducted by directors
- Reduce false director identities
- Improve tracking of director’s historical relationships with companies
While some may see the new requirement as a hassle and an extra layer of government red tape, it’s really quite a simple registration process once you have all the relevant information on hand. Here’s the ABRS link to apply for a director ID.
Need help?
Contact Anthony Adcock tody to find out if you are required to apply for a director ID.
About the Author
Anthony Adcock is a Fellow of CPA Australia and an experienced Cairns tax accountant who has worked with small businesses for over 25 years in assisting them manage their audit risk, guiding them successfully through difficult audits and helping them meet all their compliance obligations with the ATO.
This advice is general in nature and has been prepared without taking into account your particular financial circumstances, needs and objectives. Before making any decision, you should assess your own circumstances and seek professional advice from your financial and/or taxation advisor.
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