Planned for the end of 2021. Are you affected?
The new DIN regime was originally proposed by the Federal Government in 2018. Expected to work similarly to an ACN or ABN, the DIN will be unique to each director. The ultimate goal of the regime being to prevent and trace illegitimated directors and their relationships with companies over time.
How will it work?
To obtain a unique DIN, directors will be required to confirm their identity. The process for confirming identity is similar to the ‘100 points’ identification system, akin to opening a bank account. The preferred means of applying for a director ID will be electronically via myGov. Individuals are responsible for completing the director ID application form themselves, and an agent or other third party cannot apply for a director ID on behalf of a director except in limited circumstances.
Who does it affect?
The DIN will be required for directors, alternate directors, and any other officer of:
Corporations Act entities – meaning companies, registered foreign companies, or companies that are responsible for managed investment schemes; and
Aboriginal and Torres Strait Islander corporations registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act)
It will apply to companies registered under the Corporations Act that are also registered under another law, such as registered charities under the Australian Charities and Not-For Profits Commission Act 2012.
It does not apply to entities that are not incorporated under either the Corporations Act or CATSI Act and so won’t affect ACNC registered charities that are not companies.
When will it apply?
The new director ID system is undergoing testing before the full population of directors are onboarded into the system. Directors appointed under the Corporations Act will have between end of testing, which is expected in late 2021, and 30 November 2022 to obtain a Director Identification Number, with directors of indigenous corporations having an extra 12 months to apply for their DIN.