Director ID Picture

Director ID Implementation

Written by: Institute of Certified Bookkeepers

Mandatory Director Identification

With the implementation of the Director Identification Numbers (DIN’s or Director ID’s) pending, it will be important to understand the new obligations for those operating in the capacity of a Director, as failure to apply for a DIN within the required time frame will leave you open to both criminal and civil penalties. It is one of the first initiatives under the Modernising of Business Registers Program and will be a legal requirement. A person only needs to apply once for a Director ID, there is no need to apply each time you are appointed a Director.

What Does it Mean to have a Director ID?

The Director ID will be a unique identifier that a Director will keep forever, enabling regulators to better track of Directors of failed companies who use fabricated identities. It will help identify business who are doing the wrong thing. The new system will help overcome issues with data integrity, which have always been a constant battle in regulating phoenixing and the illegal activities around this dilemma. This compliance regulator will further support small businesses by keeping out the operators that are breaking the law.

What is Phoenixing

Phoenixing is when companies deliberately avoid paying liabilities by shutting down an indebted company and transferring assets to another company. This hurts trade creditors, employees, and the public through lost taxes.

The main aim of the Modernising of Business Registers Program is to protect legitimate businesses. To stop directors who are leaving unpaid creditors behind. By identifying those questionable directors from deliberately avoiding their obligations, government departments can be there to support credible businesses. Putting identification on the front end of business means we know who we are dealing with when it comes to trading with a business. There is a legislative provision to deactivate the Director ID if needed.

When does the Application Process Start?

  • New Directors / New Entities
    • Doesn’t apply yet, unless you are invited.
    • From 1st November 2021: Must apply within 28 days.
    • From 5th April 2022: must apply before being appointed.
  • Existing Directors / Existing Entities
    • Doesn’t apply yet, unless you are invited.
    • Must obtain prior to 30th November 2022. (transition period)
  • Future Directors
    • A person who intends to be appointed, may apply up to 12 months before.
  • Corporations (Aboriginal and Torres Strait Islander Act 2006 CASTSI Act) have an extra 12 months. Must apply by 30th November 2023.
  • NFP Sector – working through this at the moment. Information to follow.

Who and Why

Director ID


*Not yet – after 1st November 2021

Director ID 2


Director ID 3

If you enjoyed this article and would like to see others, then click on the link below.

Accountability BAS and Bookkeeping Services provide professional bookkeeping and BAS services to businesses in most Australian states.

What our clients say about us…

“I had the pleasure of being introduced to ABBS through Jo Bacon the WA representative. The professional service.  I have received has been so essential in assisting me with my new business, I am so grateful for the expertise, professionalism and excellent customer service I have experienced.” Marion B

“Thanks to Steve Cocks from ABBS we managed to get all the books up to date and in no time, … and that took the weight off my shoulders so I could focus on developing my business and moving forward in a more organized and structured way, keeping on top of things every month which makes life much easier.”  Elisabeth G

“As an ex-bookkeeper, I’m pretty fussy about how I like things done and I’ve found Caran from ABBS to be a pleasure to work with. She’s competent and efficient and now that I have her helping me with the bookkeeping for my business, I wouldn’t be without her.”  Sandy T

    “As a sole director of a regional law firm,  I’m very conscious of the need to have the proper business support, particularly in the areas of bookkeeping and trust accounting. Since I outsourced those components of my business to ABBS, I feel as if these vital components of my business are in expert hands and I can relax knowing that it is all being done properly , efficiently and legally.  Rob’s expertise with running a business including his insight with managing employees, his ready availability for a discussion at any time on any business matter, his advice and support, have been absolutely invaluable to CastleGate Law.  In addition, Janice from ABBS looks after my trust accounting through Leap with equal efficiency and expertise – she and Rob make a great team for any law firm.  Not only do I feel like I’m sharing the considerable burden of running a law firm, but I feel like in Rob I have someone on my side as a business owner, because of his implicit understanding of business matters, his encouragement and support. For all these reasons I cannot recommend ABBS highly enough as additions to any law firm or business partner. ”  Kate R

If you would like a brief chat or to schedule an online meeting, then call and ask to speak with me.

1300 0 ABBS 0

(1300 022 270)

If you would like to get an instant quote:

To be able to provide you with a relatively accurate quote, we will need you to provide some core information that is used for this purpose only.

We suggest you have the bank statements or closely estimate the number of transactions on all business bank accounts and credit cards for the last three months.

2017 Queensland Bookkeeper of the Year Finalist
Registered BAS Agent
Xero Logo