As part of the Digital Business Plan, the government is implementing a Modernising Business Registers (MBR) Program. The idea is to make it easier for businesses to meet registration requirements, improve efficiencies and bring a bunch of different registration services under the one roof. In addition, a new initiative has been introduced which will require all directors to obtain a director identification number (DIN).
What is a DIN?
It is a unique, 15 digit number given to a director once their identity has been verified. Similar to a Tax File Number, individuals will only ever have one DIN so it stays with you forever regardless of whether you change companies, stop being a director, change names or move overseas. So make sure you keep it somewhere safe and secure!
Why are DIN’s being introduced?
Company directors hold a position of authority and they have the power to make decisions that affect employees, shareholders, creditors and suppliers. DIN’s are being introduced as a way of further holding company directors accountable and reducing the risk of illegal activity (such as illegal phoenix activity).
Who needs to apply?
If you are already a company director in Australia and operate under the Corporations Act then you must apply for a DIN no later than 30 November 2022. If you operate under the Corporations (Aboriginal and Torres Strait Islander) Act then you have until 30 November 2023 to comply with these new rules.
However, if you become a director between 1 November 2021 and 4 April 2022, then you must apply for your DIN within 28 days of becoming a director. If you intend to become a director from 5 April 2022, you will be required to obtain your DIN before you can be appointed.
Also, keep in mind that all directors are required to apply for their own DIN – accountants cannot apply on behalf of their clients.
When does this come into effect?
You can apply apply for your DIN now by visiting https://www.abrs.gov.au/ Just keep in mind that you will need your myGovID set up before you can apply for a DIN – this is to allow you to verify your digital identity.
Where can I find out more?
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