What we know
The Media has begun talking about the new “Director Identification Numbers” as though they are about to be imposed.
This concept is real, the law is happening, the system will get here but not in the short term.
The law has been passed.
An Individual will have one unique “Director Identification Number” for life. It identifies each individual who is a Director and will be used to then link the individual to any Company they are involved in. Especially with any new company. Emphasis on preventing “phoenixing” of a business from one company to the next.
It is part of the Modernising Business Registers program which updates and merges the ABR (that houses all the ABNs) and ASICs numerous registers.
How will it happen?
- When implemented; all existing Directors will have to apply for their personal DIR and then it will be attached to every company they are connected with.
- All companies will have to ensure that their Directors have notified them of their DIR.
- It will be facilitated through existing Corporate Affairs management software and also the “Registrars” website etc.
We do not expect Government nor commercial systems to be in place to enable this initiative before January 2022.
This will be one of the first steps of the new “Commonwealth Business Register Service” having an impact and delivering one of the initiatives being implemented by Government. It will require businesses and their advisors to engage once the system is in place. It should be efficient; it should be embedded in existing business processes. It should be a part of improving the Government Registers.
The Law: The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019 was passed by Parliament on 12 June 2020.
1300 022 270
Book An Appointment