14th October 2021 | Business
The new legislation for all Company directors in Australia is, all Company directors must apply for a Company director ID number. Directors must apply themselves next month on the Australian Business Registry Services (ABRS). To prevent fraud or illegal phoenixing from reoccurring.
Phoenixing is when companies deliberately avoid paying liabilities by shutting down an indebted company and transferring assets to another company. This has a substantial economic impact on suppliers, employees, trade creditors and the public through loss taxes.
Company Directors has less than 1-year to apply for a unqiue identification number (director ID).
If you’re an existing company director you must apply for the ID number before 30 November 2022.
New directors appointed between 1 November 2021 and 4 April 2022 will have just 28 days after appointment to apply for their director ID.
For directors of Indigenous corporations that are governed by the Corporations (Aboriginal and Torres Strait Islander), Act 2006 (CATSI Act) will be required to apply for the unique identifier by 30 November 2023.
Penalties apply to directors who fail to apply within the stipulated time frame can face criminal or civil penalties of 5,000 penalty units, which currently stands at $1.11 million. Directors of a CATSI organisation can face penalties of up to $200,000.
Where to apply;
Applications for a director ID are free and will open next month on the newly established Australian Business Registry Services (ABRS) platform.
What documents to provide;
Company Directors must apply for themselves and will be required to produce their myGovID, two identifications, bank account details, super account details, ATO notice of assessment, dividend statement, Centrelink payment summary, and PAYG payment summary. The unique ID number will be with the Director permanently even if they cease directorship.
To find out more, ask our professionals at Ax3 Partners.