Heritage bank business credit card. The limits, fees and need-to-knows
If you’re on the hunt for a suitable business credit card in Australia, there are several offerings available. A mutual or ‘customer-owned’ bank, Heritage...
Are you a director of an Australian company? If so, you probably need a director ID. If you don’t already have one, penalties may apply.
We’re going to go over everything you need to know about a director ID in Australia. We’ll cover what it is, who needs it, and how to apply. Let’s jump right in.
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A director identification number (director ID) is a 15-digit unique identifier you must apply for if you’re a director of an Australian company.
Each director ID begins with 036, the International Standard ISO 3166’s code for Australia. 11 other digits follow this with a final check digit.
The unique number remains with you for life even if you:
The purpose of the director ID is to protect shareholders and other interested parties from directors participating in fraudulent activities.
An example would be closing a company and defaulting on payments, then re-opening a new one and conducting the exact same business. The director ID allows people to see the movement of an individual.¹
If you’re an eligible company officer, that means a director or an alternate director acting in that capacity, you must apply for a director ID.
A director of the following scenarios applies:
If you’re unsure if you need to apply, search for your company ABRN. If you see ASIC Registration – ACN or ARBN or ARSN or ARFN next to the business name, and you’re a director, you must apply.
Ideally, you must register within 12 months before becoming a director. If it’s a sudden appointment, register immediately.²
Applying for a director ID is free.¹
The only time a payment would be required is if you don’t apply in time; see the FAQs below for more detail.
Once you’ve identified that you need to apply for a director ID, you need to gather some documents.³
First, you must have a myGovID, with a minimum of Standard identity strength.
If it’s currently displaying Strong identity strength, you only need to provide:
If it’s Standard identity strength, you’ll need to provide the above two plus 2 of any of the following:
There are 2 steps.
First, if you don’t already have a myGovID (see above), you’ll need to apply and provide sufficient documentation for it to reach at least Standard identity strength.
Next, log into the ABRS site with your myGovID and complete the online form.
If you have any difficulties with the online application and you’re physically in Australia, phone the ABRS. You’ll be asked identification questions, so be prepared.
If you’re based outside of Australia, and the online form fails, you can complete a paper form and provide certified copies of documents.³
Following are some commonly asked questions about a director ID in Australia.
Severe penalties apply if you don’t apply for a director ID.
Under Australian Government legislative section s1272c, a criminal penalty fee of $16,500 applies. If it goes to civil court, the amount is $1,375,000.⁴
You’re the only person who can apply for a director ID, as your identity needs to be verified. An accountant or tax agent can advise you if you need one but cannot apply on your behalf.⁵
Once you have a director ID, you have it for life; it never expires.
The only time that it may be cancelled is if you applied in advance of expecting a directorship, but it never eventuated, and you held it for 12 months without it being used.
If you’re appointed as a director in the future, you can reapply, and the same number will be reinstated.⁶
As a company director, you're most likely involved in the business's financial decisions. One may be how to pay staff, contractors, or suppliers abroad.
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Bulk payments can be done in one transaction, and every transfer is made at the mid-market rate with a small upfront fee.
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Sources:
Sources checked on: 03 July 2023
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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