All directors of a company, registered Australian body, registered foreign company or Aboriginal and Torres Strait Islander (ATSI) corporation are required by law to apply for a director identification number (DIN).
Back in October 2021, Nexia sent out its flyer entitled Mandatory Director Identification Number Regime Commences.
We are now a year on and the deadline for existing Directors at 31 October 2021 have until 30 November 2022 to apply for their DIN. Note that this applies to all persons that were a Director at 31 October 2021, even where they have subsequently resigned all directorships and are no longer a director of any company – they must still obtain a DIN. Directors of ATSI corporations have additional time to apply, by 30 November 2023.
How to Apply
The ATO and ABRS have prepared a “new directors ID demonstration video” that is approximately 6 minutes long. The video takes you through the steps you need to complete to apply for your DIN.
Once you obtain your DIN, you will need to provide it to your company secretary/record holder and authorized ASIC agent.
Penalties
ASIC is responsible for enforcing DIN offences set out in the Corporations Act 2001. It is a criminal offence if directors do not apply on time and penalties may apply.
|
|
Legislative Section |
Max Penalties for Individuals |
|
Failure to have a DIN when required to do so |
s1272C |
$13,200 (criminal), $1,100,000 (civil) |
|
Failure to apply for a DIN when directed by the Registrar |
s1272D |
$13,200 (criminal), $1,100,000 (civil) |
|
Applying for multiple DINs |
s1272G |
$26,640, 1 year imprisonment or both (criminal), $1,100,000 (civil) |
|
Misrepresenting DIN |
s1272H |
$26,640, 1 year imprisonment or both (criminal), $1,100,000 (civil) |
If you have any questions or would like any information on what these changes mean for you, please contact your Nexia Advisor.
