When must I apply for a Director ID?

If you are a new director of an Australian company appointed from 5 April 2022 onwards, you must apply for a Director ID BEFORE being appointed as director. Directors appointed before 1 November 2021 were required to apply by 30 November 2022. Directors of Aboriginal and Torres Strait Islander corporations had until 30 November 2023. Applications are made through the Australian Business Registry Services (ABRS).

What is the penalty for failing to apply for a Director ID?

The maximum criminal penalty for failing to apply for a Director ID without reasonable excuse is 5,000 penalty units for an individual (which equates to $1.65 million at the current $330 penalty unit value indexed from 7 November 2024). Civil penalty exposure is the same. Wilful or reckless contravention can also result in imprisonment for up to 1 year.

Director ID Enforcement and Statistics: 2026 Update

Director Identification Number regime under the Corporations Act 2001 Part 9.1A: registration statistics, ABRS enforcement and 1,000 penalty unit exposure.

Statutory basis

The legal framework for the Director Identification Number (Director ID) regime is established in Part 9.1A of the Corporations Act 2001 (Cth) and corresponding provisions within the Corporations (Aboriginal and Torres Strait Islander) Act 2006. This legislation governs the requirements for directors and alternate directors. Director ID complete guide

The introduction of the Director ID regime was facilitated by the Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020. This Act enabled the creation and implementation of the system for assigning unique identifiers to company directors.

All directors and alternate directors of Australian companies and Aboriginal and Torres Strait Islander corporations are legally obligated to apply for a Director ID. Applications are processed through the Australian Business Registry Services (ABRS), which is operated by the Australian Taxation Office (ATO), and require identity verification via myGovID or an equivalent method.

Registration deadlines

The initial registration deadlines for Director IDs varied based on appointment date. Directors who held office before 1 November 2021 were required to apply for a Director ID by 30 November 2022. Directors appointed between 1 November 2021 and 4 April 2022 had 28 days from their appointment date to apply.

From 5 April 2022, the requirement changed to mandate that all new directors apply for a Director ID prior to their appointment. This applies to directors of companies registered under the Corporations Act.

Directors of Aboriginal and Torres Strait Islander corporations had a later deadline, with applications required by 30 November 2023. The Registrar has provided guidance for directors who missed these deadlines and outlines processes for potential extension applications in specific circumstances.

Adoption and registrations

More than 2.7 million Director IDs had been issued as of late 2024, according to publicly available statistics from the Australian Business Register (ABRS). The Registrar estimates that a significant number of directors, several hundred thousand, have not yet applied for a Director ID.

The Registrar provides regular data updates on Director ID applications, processing volumes, and rejections. This information is publicly accessible and contributes to transparency regarding the registration process.

The Registrar has indicated that enforcement action is now underway for directors who have not complied with the Director ID requirements, absent reasonable excuse. Current compliance efforts are prioritising directors of dormant entities, recently appointed directors, and those associated with companies facing insolvency proceedings.

Penalties and enforcement

Failure to apply for a Director ID by the relevant deadline constitutes an offence. This is outlined in sections 1272C, 1272D and 1272H of the Corporations Act 2001. Individuals who fail to comply may face significant penalties. Director ID five minute apply

The maximum penalty for individual directors for this offence is 5,000 penalty units. As at 7 November 2024, a penalty unit is valued at $330, resulting in a maximum financial penalty of $1.65 million. A civil penalty maximum of 5,000 penalty units also applies under section 1272G.

Wilful or reckless contravention of Director ID obligations can lead to criminal penalties, including a maximum imprisonment term of one year. Beyond these penalties, non-compliance can also result in administrative consequences, such as the rejection of new director appointments and difficulties with future company registrations.