The Commonwealth Government has introduced the Director Identification Number (DIN) regime through reforms to Part 9.1A of the Corporations Act. From 1 November 2021, DINs became mandatory for all company directors. DINs are expected to assist regulators with their regulatory functions, such as combatting illegal phoenixing activities. DINs of course mean more admin for company directors but its admin that cannot be ignored. Penalties apply for a director’s failure to comply with the DIN regime.
This article addresses the FAQs about what the DIN regime means for company directors, and how directors may register for their DIN.
For further information in relation to how the DIN regime came about, and specific information in relation to the regulatory considerations, please have a read of our earlier article, available here.
A Director Identification Number is a unique 15-digit identifying number issued to directors upon their successful application with the Australian Business Registry Services (ABRS). DINs assist enforcement bodies such as ASIC and the ATO to combat:
Aside from a relatively quick on-boarding paperwork requirement, the DIN regime will have very little impact on most directors.
A director of a company or a director of an Aboriginal and Torres Strait Islander corporation will require a DIN if they are an ‘eligible officer’ as defined in the Corporations Act 2001 (Cth) (Corporations Act) or the Corporations (Aboriginal and Torres Straight Islander) Act 2006 (Cth) (CATSI Act). An eligible officer is:
A person may also apply for a DIN if they plan to become a director within 12 months of lodging an application with the ABRS.
Directors appointed, or soon to be appointed, under the Corporations Act must apply for their DIN within the following timeframes:
|Directors appointed before 31 October 2021.||Apply by 30 November 2022.|
|Directors appointed or to be appointed between 1 November 2021 and 4 April 2022.||Apply within 28 days of your appointment.|
|Directors appointed from 5 April 2022.||Apply prior to your appointment.|
Directors appointed, or soon to be appointed, under the CATSI Act must apply for their DIN within the following timeframes:
|Directors appointed before 31 October 2021.||Apply by 30 November 2023.|
|Directors appointed or to be appointed from 1 November 2022.||Apply prior to your appointment.|
Directors must personally complete their DIN application. The relevant steps are as follows:
If the Registrar is satisfied with the application, and identification documents provided are sufficient and certified (for example by a legal practitioner, Justice of the Peace or medical professional), the DIN will be granted.
If a director is unable to lodge a DIN application within the timeline specified above, an extension of time form should be lodged to avoid the risk of incurring a penalty.
The ASIC companies register is expected to be transferred to the ABRS in late 2023, and it is expected that DINs will be automatically linked to the company’s register. In the interim, it is best practice for a director to provide their DIN to the company’s record-holder.
Please note that the DIN regime does not relieve directors from the obligations to notify the company of any changes in personal details with respect to publicly available information, specifically under Part 2D.5 of the Corporations Act.
If a director fails to comply with the DIN regime, the following penalties may apply:
|Failure to obtain a DIN||Section 1272C||Criminal: $13,200
|Failure to apply for a DIN||Section 1272D||Criminal: $13,200
|Applying for multiple DINs||Section 1272G||Criminal: $26,640 and/or one year imprisonment
|Intentionally misrepresenting your DIN to a Commonwealth body, company, or registered body||Section 1272H||Criminal: $26,640 and/or one year imprisonment
The Registrar may disclose information obtained through a DIN application to:
The Registrar is required to abide by the disclosure obligations and protections within the Privacy Act 1988 (Cth), and therefore may only disclose information within the performance of its functions. However, if a director does not want any information disclosed to the departments and agencies listed above, it is possible to make an application under section 1270N of the Corporations Act. An applicant would be required to demonstrate how such disclosure would be detrimental, and show that these consequences outweigh the benefit to the above departments and agencies performing their functions.
For further information, please have a read of the ABRS’s privacy notice for a director ID, available here.
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Edward Martin, Partner
Kathy Merrick, Partner
Kate Mylott, Lawyer
Alistair MacLennan, Paralegal