Directors have got until the end of the month to get a Director Identification Number. Accountant GAIL FREEMAN explains why.

COMPANY director Jing had heard there was a new thing around called a Director Identification Number (DIN).

“I can’t see the point in applying for this so I think it best to close my company down,” he said when he came to see me wanting help with that decision.

I told him that recently the ATO clarified that anyone who was a company director at any time after October 31, 2021, was required to have a DIN, even if the company had been closed down. 

“So closing the company will not relieve you of that obligation, Jing. You’ll still have to get a DIN,” I said. 

“It is actually quite an easy on-line process or you can do it by phone. 

“From my experience you can wait for some time on the phone so doing it on-line is probably quicker.

“If you can’t use either of these methods to apply, there’s a form on the ATO website that you can use to apply. 

“Every company director will need a DIN. As you were appointed a director before October 31, 2021, you must apply for your DIN before November 30, 2022. 

“If you were appointed between November 1, 2021, and April 4, 2022, you must apply for your DIN within 28 days of your appointment and from April, 5, 2022, you will need your DIN before you can be appointed as a director. “Your DIN will stay with you forever and will be used for multiple companies”

Applicants for a DIN will need to have a MyGovID account. This is not the same as MyGov. To get a MyGovID account applicants need any two forms of ID from a driver’s licence, passport, birth certificate or Medicare card. “After you have obtained your online MyGovID account you will need other documents to actually apply for the DIN,” I told Jing. 

“These include your tax file number, your residential address which must be the one held by the ATO and two other forms of ID such as a tax notice of assessment, super account details, bank account details, a dividend statement, a Centrelink payment summary or a PAYG payment summary.

“The next step is to go to the ABRS website abrs.gov.au and follow the directions. 

“The DIN itself should only take about five minutes to apply for. “Only you can apply for a DIN, I cannot do it for you. If you do need help, we can certainly assist you but we cannot do it for you. You must act now. There are huge penalties for not getting a DIN.”

Jing said he would take me up on the offer of help, “I often have trouble with this sort of thing”. 

“Based on your advice there seems little point in closing the company down as I will need a DIN anyway,” he said. 

I replied that I was happy to help.

“I have had to help quite a few others,” I said. 

“Once you have your DIN you will need to advise the person who looks after your company so that it can be included with the company records.”

If you need help with applying for either MyGovID or your DIN contact the friendly team at Gail Freeman & Co Pty Ltd on 6295 2844 or visit gailfreeman.com.au

Disclaimer
This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser.
Authorised Representative of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.