The final stage of the DIN rollout is soon to cross the finish line. The expectations of Directors are clear and so are the penalties for non-compliance.
The Australian Business Registry Services (ABRS) commenced its Director ID enforcement in March this year. They focused on first-time directors who had not completed their director ID requirements and took an education, awareness and assistance approach. Eventually, the registrar will initiate firmer compliance actions. This may be issuing a directive to directors who do not comply. If they still don’t comply even after being directed to, these directors may be referred to ASIC. ASIC is responsible for enforcing director ID offences.
The issuing of offences and penalties
ABRS provides guidance and support to directors to enable them to understand and meet their DIN obligation.
ASIC has the role of enforcement. Non-compliance can be a criminal and civil offence, including terms of imprisonment.
More serious criminal or civil liabilities may arise if a director applies for multiple DINs, provides false or misleading information in their application, or misrepresents their DIN to a Commonwealth body, registered body or company. These offences carry significant civil and criminal penalties, including terms of imprisonment.
Non-compliance aside, we answer the frequently asked questions around DINs moving forward.
Can I register a company without a Director’s DIN?
If the director was already a director of another company before 1 November 2021, then yes, you can register a company without that director’s DIN. However, that Director must apply for their DIN before 30th November 2022.
If an intended director is actually a first-time director and without a DIN, then no, the registration of a company cannot be completed. Intending new directors must apply before being appointed to the company, or before the company is registered.
Am I required to provide my director ID to ASIC or companies?
All company DINs are considered private information. Currently there is no requirement to provide your DIN to ASIC or to the companies you’re a director of however, the Director is free to provide this information to anyone.
Did you know
If you are an Australian company director living overseas, you are still required to get a DIN.
The ABRS is not allowed to issue DINs to anyone other than the Director individually.
At present the ABRS is not allowed to provide a director’s ID to a third party however, the understanding is that Director IDs will be made public once the integration is complete. The good news here is your name and address will no longer on your public record.
Let’s keep in touch
It’s very important for us, as your advisor, to know that you are aware of these DIN requirements. While we do not necessarily need to record your DIN on your client file, we would greatly appreciate knowing that you have applied and received your DIN.
We’re ready to help. If you require more information about your requirements as a director, call our team on +61 3 9820 6400.
This is not advice. You should not act solely on the basis of the material contained in this post. These are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.
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