If you’re a director of an Australian company – or plan to be – please read on. The Australian Government introduced a mandatory Director Identification Number (DIN) system, the initial step in the Modernising Business Registry (MBR) program legislated in 2020.
What the DIN system aims to achieve
The DIN provides accountability and traceability of a director’s relationships over time and across all companies, helping identify repeated unlawful activity such as illegal phoenixing, and solving the problem of false or fraudulent director identities.
Key features
It is mandatory for all directors, foreign directors and alternate directors of Australian companies. The DIN is a unique 15-digit number (beginning 036, the identifier for Australia). Like a tax file number, you are issued only one DIN, held for life. You must prove your identity to obtain one, and you must apply personally – it can’t be done by your accountant, lawyer or assistant. Directors must update their DIN records within 7 days of any change to personal information, and there are significant penalties for non-compliance.
How to apply
There are three options. Online is the fastest – first establish your identity via the myGovID app, then apply with your tax file number and residential address as per ATO records. You can also apply by phone (13 62 50) using the same identity documents, or by mail (not recommended due to document certification and postal delays).
Timing
Under the Corporations Act, new directors appointed from 5 April 2022 must apply before appointment; existing directors appointed on or before 31 October 2021 had until 30 November 2022; and those appointed between 1 November 2021 and 4 April 2022 had 28 days from appointment. As the process is simple, we recommend applying now if you haven’t already.
I have my DIN – now what?
There’s currently no requirement to include the DIN on company forms, but directors must provide their DIN to all Australian companies they direct, and each company must store it securely. While we can’t complete your DIN application for you, we’re happy to help with any questions – just get in touch or email your adviser.