Hi and welcome back to Shae’s Tips & Tricks for 2022!
The world is still in the Upsidedown, but that doesn’t mean there are no new developments in the tax and accounting realm. For the first instalment of 2022, we’re looking into the newly implemented director ID. From November last year there were a few changes to being director of a company and now if you are a director or corporate trustee of a Self-Managed Super Fund, amongst others listed later, you are required to have a Director ID. What even is that? Why do I need a director ID? Do I have to apply for it? Will it cost me anything? Do I have to renew it? How do I know I’m eligible? How and when do I apply for it? Read on and all your questions will be answered.
A director ID is a unique identifier issued to an individual who has verified themselves with the Australian Business Registry Services (ARBS) and it’s basically been implemented to prevent fraudulent identities. If you are a director of any of the above-mentioned positions, also including a charity, an incorporated association with ASIC, and a foreign company registered with ASIC, then you need to apply. This is a one-off identifier that you keep forever, even if you become a director of a different company, move interstate or overseas, change your name or cease being a director. You must apply for your own director ID; this can’t be done on your behalf, and it is free (who doesn’t love free stuff?).
You don’t need a director ID if you are not a director in any of the above capacities, that’s that simple. If you’re an associated individual like a secretary or an office holder for a company, or you’re a sole trader or in a partnership, a director of a charity or organisation NOT registered with ASIC, then you are not eligible and there’s no need to apply.
When do I need to apply for my director ID? This depends on the date that you became a director. If you became a director on or before October 31st, 2021, you need to apply by November 30th, 2022. If you became a director between November 1st, 2021 & April 4th, 2022, you need to apply within 28 days of that appointment. If you become a director from April 5th, 2022, you need to apply before your appointment.
The fastest way to apply is online, but you can also apply by phone, or via a paper submission. To apply online, you need to verify your identity with a MyGovID which is different from your standard MyGov account. If you need help setting one up, follow this link. (https://www.mygovid.gov.au/set-up). You will need your individual tax file number (TFN), your residential address that you have recorded with the ATO and answer TWO questions based on the following documents – take your pick amongst: your bank account details (the same account that you use to receive your tax refund in or that has earned interest in the last 2 years), a Notice of Assessment (issued within the last 5 years, you will need BOTH the date of issue and the ATO reference number), your Super account details (member account number and your Super Fund’s ABN) , a dividend statement (from the last 2 years. You will need the investment reference number), a Centrelink payment summary (issued in the last 2 years. You will need to provide your taxable income) or a PAYG payment summary (again within the last 2 years and again showing your gross income). The payment summaries can be found on your MyGov account.
If you wish to apply over the phone, you will need your TFN, residential address recorded with the ATO, answer two questions the ATO knows about you through details provided and details from two (primary & secondary) identity documents, such as a birth certificate or a passport (primary documents) and details from a Medicare card or drivers licence (secondary documents). You will need these same criteria if you wish to apply via paper submission. It is requested that you do not send any original documents in as you won’t get them back. You will need to photocopy them, making sure your photograph is clear. You will also need to have them certified. Unfortunately, the good people at Verve cannot certify these documents for you due to potential conflict of interest but other authorised certifiers you can ask are barristers or solicitors, medical practitioners, JP’s, police officers, celebrants, etc. My tip? Head down to the courthouse and they can sort your certification out.
If you have any queries or concerns about your director ID or the application for it, please don’t hesitate to contact our office and we can answer your questions.