SMSF trustees: reminder to apply for director IDs

The director identification regime is now in place. If you’re a director of a corporate trustee of an SMSF, you’ll need to apply for a director ID number online through the new Australian Business Registry Services (ABRS) before the deadline. A director ID is a 15 digit identifier given to a director (or someone who intends to become a director) that has verified their identity with ABRS.

Generally, a director ID starts with 036 and ends with an 11-digit number and one “check” digit for error detection. Each director will need to apply for their own ID so that if there are 2 or more directors for the corporate trustee of your SMSF, each director will need to apply separately. The process is entirely free, and the number that is assigned will be permanently linked to the individual. This is the case even if the individual changes companies, stops being a director, changes name, or moves interstate or overseas.

Depending on when you became a director, the deadline for obtaining the director identification number will differ. Individuals that became directors of a corporate trustee before 31 October 2021, will have until November 2022 to apply. Any individuals that are appointed to be a director of a corporate trustee between 1 November 2021 and 4 April 2022 will need to apply within 28 days of their appointment. After 4 April 2022, individuals seeking to be appointed to be directors of a corporate trustee will need to apply for a director ID before being appointed.

The director ID regime was implemented as a way to prevent the use of false or fraudulent director identities, make it easier for external administrators and regulators to trace directors’ relationships with companies over time, and identify and eliminate director involvement in unlawful activity, such as illegal phoenix activity. 

To apply for your director ID, you will need to first set up myGovID, which is different to myGov. The myGovID is an app that you need to download onto your smart device and confirm your identity using standard documents (ie driver's licence, passport, etc). When your identity is authenticated, you’ll be able to log onto a range of government services including the online director ID application with ABRS.

Note however, to complete the application, additional information such as TFN, residential address as held by the ATO, and/or information from 2 documents to verify your identity (eg: bank account details; ATO notice of assessment number, super account details, Centrelink payment summary; or PAYG payment summary will be required) You may need to contact us to obtain some of that information.

Once you receive your director ID, you will need to pass it onto the record-holder of the corporate trustee, which may be the company secretary, another director, a contact person, or an authorised agent of the company. If the corporate trustee changes or you become the director of another company, you will need to pass on this information to the new corporate trustee or the other company.