What’s up next on a Director’s menu? It’s DIN.
Just been hit by the word DIN from all angles? Let us break the new government scheme down for you:
The Federal Government’s new suite of provisions require all directors of Australian companies to hold a unique director identification number (“DIN”) from November 2021. These updates are codified in the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 (Cth). If you’re currently a director, or soon to be one, we’ve set out the key points you need to know about DINs.
What’s a DIN?
The DIN scheme is designed to provide a unique 15-number identifier to directors of Australian companies in order to verify their identity. Directors are required to keep their DIN safe, as it attaches solely to a director (and not to the company). This means that when a director leaves or changes companies, changes their name, or moves overseas, the DIN goes with them - like a tax file number. A director may be on the board of multiple companies and they will use the same DIN.
DINs are a good thing! The DIN system may assist in protecting against illegal activity, and tracing whether directors have been involved in failed companies or conflicts of interest.
Do you need a DIN?
If you’re listed as a director of an Australian company, or you want to become one, you’ll require a DIN from November 2021. The new scheme applies to all directors, if the organisation is registered under the Corporations Act 2001 (Cth) as a:
Company;
Registered foreign company;
Registered Australian body;
Aboriginal or Torres Strait Islander corporation.
At the moment, the DIN scheme only applies to ‘eligible officers’ which are directors and alternate directors. But keep an eye out: It has been left open for other company officers to be included in the scheme in future.
Next steps
You can apply for a DIN from 1 November 2021, and existing directors must apply by 30 November 2022.
You are required to apply for a DIN yourself by verifying your identity in a one-off application. This cannot be done by someone else on your behalf. You can do this online using the Australian Business Registry Services website, and it’s free to apply.
What are the deadlines?
The ABRS advises that the timelines for obtaining a DIN are determined by the date you became a director, or when you will become a director:
If the date you become a director is on or before 31 October 2021, then you must apply by 30 November 2022.
If the date you become a director is 1 November 2021 until 4 April 2022, then you must apply within 28 days of the date you become a director.
If the date you become a director is from 5 April 2022 onwards, then you must apply prior to appointment.
All current directors should apply for a MyGovID ASAO, in preparation for obtaining a DIN in time for the 30 November Deadline. If you don’t obtain a DIN in time, there are criminal and civil penalties which may apply (so we best suggest you get to it now.)
If you have any further questions on DINs, drop us a line at hello@weareluna.co
By Julia Friend
