What You Need to Know About Director ID’s

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What You Need to Know About Director IDs
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• To modernise Australian business registers, the
  Australian government has introduced a new
  company director tracking system, the Director
  Identification Number (DIN). Once the Australian
  Taxation Office (ATO) confirms a persons
  identity, they will receive a unique DIN.
  Importantly, directors keep this number
  permanently. As a result, a director will be able
  to use this number across multiple companies for
  each directorship they hold.

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• The DIN has received strong support from the
  Australian Securities and Investment Commission
  (ASIC). They believe it will significantly
  benefit regulators and individuals doing
  business. Additionally, it will help provide
  greater security and modernise the way director
  information is collected. This article will
  explain how the company director tracking system
  works in Australia.

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• Individuals who are currently a director or will
  be acting as a director in the future must apply
  for a DIN. The Australian Business Registry
  Services (ABRS) will be responsible for
  introducing and maintaining the DIN regime.
• The DIN Regime
• The DIN regime has commenced with a transitional
  period applying from 1 November 2021. Notably,
  with the commencement of the DIN regime, the
  following applies

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• existing directors will need to apply for a DIN
  by 30 November 2022
• new directors appointed between 1 November 2021
  and 4 April 2022 will be required to apply within
  28 days of their appointment and
• new directors appointed from 5 April 2022 will
  need to apply for a DIN before their appointment.
• The table below outlines key dates you should
  note.

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• All directors, acting alternate directors and
  management committee members of registered
  bodies will require a DIN. Registered bodies
  include companies and registered Australian
  bodies under the Corporations Act.
• To apply for a DIN, visit the ABRS website.

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• Frequently Asked Questions
• What is the company director tracking system?
• The Australian government has introduced a new
  tracking system, the Director Identification
  Number to modernise Australian business
  registers. Accordingly, a director will be able
  to use this number across multiple companies for
  each directorship they hold.

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• Why do you need a DIN?
• The Federal Government wants to prevent the use
  of fraudulent or false director identities, in
  particular, illegal phoenixing, a widespread
  issue in Australia. Phoenixing occurs when a
  company is liquidated, abandoned or wound up to
  avoid paying its debts, and the same group of
  people start a new company.
• What do you need to do?
• You can apply for your DIN from 1 November 2021.
  If you are becoming a director, you can apply
  before your appointment. The law provides a clear
  timeframe for when you need to apply.

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• Why is the DIN being introduced?
• Before the DIN regime, ASIC did not verify the
  identity of directors. Likewise, there was
  limited transparency of relationships between
  directors and multiple companies. Also, directors
  may have multiple records within ASIC systems.
  The new company director tracking system promotes
  good governance and significantly improves data
  security.
• I am a company director. Is it compulsory for me
  to comply with the new tracking system?

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• All directors, acting alternate directors and
  management committee members of registered
  bodies will require a DIN. Further, there will
  be significant civil and criminal penalties for
  directors who do not comply.
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