With two months to go before the deadline, most company directors have yet to apply for an ID.
ATO figures show that about 1.6 million directors — nearly two-thirds of the total — have not applied for an ID number two months before the Nov. 30 deadline.
A director ID scheme, one of the first steps to digitize and consolidate all business registers in Australia, is essential to prevent fraud, corporate revitalization or phoenixes arising from the ruins of failed businesses, it said. the company said.
The ATO said, “Director IDs are being introduced to help combat illicit Phoenix activity and allow for traceability of director relationships between companies and over time.” “The Director ID also helps prevent the use of fake or fraudulent Director IDs.
“If you are a director of an Australian company, you must apply for a Director ID by 30 November 2022. Australian Business Registry Services encourages all directors to apply now and beat the rush. doing.”
Failure to obtain a Director ID when required or failure to apply when directed by a registrar can result in criminal penalties of up to $13,200 and up to $1,100,000 under civil law.
One possible reason for the low adoption rate is that directors must apply directly. Accountants and other financial professionals cannot apply on their behalf “unless the registrar is satisfied that the individual cannot apply on their own,” he said. .
To apply online, directors must already have a unique myGovID with at least a standard level of background verification prior to beginning the process.
According to the ATO, nearly nine in 10 directors applied online and were given ID numbers instantly. Non-digital options are available for those who cannot apply online, and IDs are said to be free.
Different deadlines also applied to directors of companies registered with the National Registry.
Philip King is editor of Accountants Daily and SMSF Adviser, a leading source of news, insights and educational content for professionals in the accounting and SMSF sectors.
Philip will join the title in March 2022 and brings extensive experience from a variety of roles with Australia’s national broadcast daily, most recently as automotive editor. His background has also been featured in various consumer and trade publications.