New Directors ID System to Begin November: Are you ready?

KEY TAKE-OUTS:

• New Australian Business Registry Services (ABRS) was established.
• Aims to streamline how businesses register, view and maintain business information.
• Directors must apply from November 2021 on the ABRS website.

The full implementation of the 2020 Budget Digital Business Plan’s Modernising Business Registers program has now been announced by the government including the new Australian Business Registry Services (ABRS). The rollout of this program between 2021 and 2024, by the Australian Taxation Office, will introduce a new director identification number and will consolidate more than 30 ASIC registers into one place.

The program aims to:

• Make it easier for businesses to meet registration obligations.
• Make business information more trusted and valuable.
• Improve the efficiency of registry service transactions.

While the new ABRS is already live, from November 2021, directors must verify their identity as part of a new director ID requirement. This is a unique identifier that a director will only receive once for the remainder of their working life. This must occur where the person is a director of a company, registered foreign company, registered Australian body or even an Aboriginal and Torres Strait Islander corporation. Each director must apply for their individual ID themselves due to the verification requirements that must be presented. The rollout of this new identification system is overseen by the ABRS with ASIC responsible for the enforcement.

What will you need to do?

First, you will need to have a myGovID, if you do not yet have one you will have to set one up before applying for the director ID. If you already have one, you can apply as soon as November begins. Then the following documents must be gathered:

• Tax File Number.
• Your residential address held by the ATO.
• Two documents to verify your identity.

Once you have your myGovID and the necessary documents, from November 2021 you can log in to ABRS online to apply for your director ID. The application should only take you 5 minutes! You can apply here.