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Director IDs – ATO expresses concern regarding SMSF registrations
Article published on: 03-11-2022
Clients who are (or will become) a director need a director identification number (ID). This includes clients who have a self managed superannuation fund (SMSF) corporate trustee.
Many small business owners may have already worked with their registered tax agent to apply, however, there are concerns that SMSF corporate trustees are not aware of this obligation and have not yet taken the necessary steps.
In a recent speech, Assistant Commissioner Justin Micale stated the ATO is concerned that they estimate approximately 389,000 directors of SMSF corporate trustees are yet to apply for their director ID.
Clients who were appointed as directors of an SMSF corporate trustee on or before 31 October 2021 have until 30 November to apply for their director ID. Advisers are encouraged to check-in with their SMSF clients and ensure that they have applied for their director ID. No-one can do it for them, they must do it themselves.
Outlined below are the important information, timeframes and steps involved.
Director IDsAs part of the Government’s Modernising Business Registers (MBR) program, all company directors are required to have a director ID. A director ID is a unique identifier every corporate director will need to apply for once and will keep forever. A director can only have one director ID that they must use for all companies.
TimeframesWhen a client needs to apply for a director ID depends on when they first became a director. The table below summarises the requirements, depending on when they were appointed director.
When appointed
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Director ID application deadline requirements
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On or before 31/10/2021
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30 November 2022
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1/11/2021 to 4/4/2022
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Within 28 days of appointment
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On or after 5/4/2022
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Before they are appointed
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NOTE: On 15 November 2022, the Government announced that those who are not currently a director of a company but were as at 31 October 2021 will no longer be required to apply for a director ID. More information on this announcement can be found here.
How to apply for director ID
Clients must apply for their director ID themselves. No one can apply on their behalf.
To apply for a director ID, clients can visit www.abrs.gov.au and select the ‘Apply for your director ID’ link. It will also step them through setting up a myGovID, which they will need to login to Australian Business Registry Services (ABRS) online. Note that myGovID is different to a client’s myGov account.
Clients can also phone Australian Business Registry Services in 13 62 50.
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