2020 saw the Government enact the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth). The legislation sets out the legal framework for the new director identification number (DIN) regime.
The DIN is a unique identifier for each person who consents/continues to be a company director. It is underpinned by an online identity verification process. Once a person obtains a DIN, it can then be linked to a director’s role on the companies register. The DIN will be a permanent number tied to the director’s name even if the person thereafter ceases to be a director.
The DIN requirements form part of the Corporations Act 2001 (Cth) (Corporations Act). The application date for the legislation must be no later than two years from the date the Bill received Royal Assent (i.e. no later than 22 June 2022) unless an earlier date is set by the Registrar.
In short, Part 9.1A of the Corporations Act will require all persons to comply with the DIN requirement as follows:
-
All existing directors must apply for a DIN within a prescribed period of time (yet to be set)
-
All persons appointed as directors within 12 months of the application date must apply for a DIN within 28 days of their appointment
-
All persons appointed as directors 12 months or more after the application date must apply for a DIN prior to being appointed as a director.
Note: In time, all new directors will need to apply for a DIN in order to be a director of a company. There is provision within the legislation for the Registrar to provide an exemption from DIN compliance, however it is expected to only be available in exceptional cases.
What action is required?
The DIN application process is still being beta tested and trialled by the Australian Taxation Office. Moore Australia representatives are participating in the testing and application process. Once this has been finalised, we will be liaising directly with our clients and readers to ensure a smooth implementation of the DIN compliance for all company directors.
For further information on how this may impact your individual circumstances, please contact your Moore Australia advisor.