Company directors must now authenticate their identity by obtaining a new director identification number -DIN. Directors of an SMSF corporate trustee, family trust, and directors acting as alternate directors are all included do the same, even if appointed for a limited time or temporarily.
What is the concept of a DIN?
A DIN is a one-of-a-kind 15-digit identification number that a director will obtain once and keep for the remainder of his or her career. A director may only have one DIN, which must be used for all firms. The use of DINs is designed to deter the use of fraudulent director identities, assist regulators in tracing directors’ relationships with enterprises, and to better identify directors involved in illegal behaviour.
How to obtain a DIN?
To authenticate their identification, directors will need to apply for a DIN. As a result, advisers and accountants/tax agents cannot file for a DIN on behalf of their director clients. Practitioners might instead assist their director clients by notifying them of the relevant responsibilities and deadlines.
To begin, go to the ABRS website (abrs.gov.au) and select “Director identification number”. Or, directors can scroll down and click “Apply for your director ID.”
The directors can then complete the following process outlined on the website:
- Create a myGovID.
- Gather the necessary identification documents.
- Finish your application.
It will not take more than 5 minutes to complete, and once done, the director will receive their DIN.
Directors who live abroad can still apply online provided their identification can be verified with myGovID.
If directors are unable to obtain a myGovID, in that case:
They can apply by phone or on paper. The paper form alternative is a more time-consuming process, and directors must additionally give certified copies of their documents to authenticate their identification.
Don’t let your director clients get taken off guard. All directors must apply for their DIN before the deadline.
Key dates to apply for DIN:
- Appointed on/before 31st October 2021, apply by 30th November 2022.
- Appointed between 1st November 2021- 4th April 2022, apply within 28 days of appointment.
- Appointed from 5th April 2022, apply before the appointment.
Noncompliance with the new DIN criteria, as well as giving incorrect or misleading information, may result in both civil and criminal sanctions. From the standpoint of an SMSF, directors of an SMSF corporate trustee who do not get a DIN may be required to resign as trustees and potentially abandon the fund.
When applying for their DIN, directors should use prudence. They must apply only through the abrs.gov.au website since it is a secure portal that will keep their information secure.