ATO to take over control of 30 ASIC registers
As part of the 2020 Budget, the government announced the establishment the new Australian Business Registry Services (ABRS) which is supposed to streamline how you register, view and maintain your business information with government.
The ABRS will bring together more than 30 ASIC registers and the Australian Business Register (ABR) in one place.
SIGNIFICANTLY, The program is being implemented by the Australian Taxation Office (ATO) as the administrator of all the various registers. On 15 April 2021, ASIC registry staff moved to be under the control of the ATO.
Director identification number
As part of this change, a new Director Identification Number (Director ID) has been created.
IMPORTANT: From November 2021, anyone holding a Director position or those planning on becoming a Director must apply for a DIN.
Directors must apply for their director ID themselves because they will need to verify their identity. No one can apply on their behalf, however, if you need help, the MKA team is here to guide you through this process. You’ll need to use your myGovID (Different from myGov) and provide ID documents like your tax File number, bank or super account details, PAYG summary and/or dividend slips. You’ll have to log onto a government site and it take 5 minutes to complete the registration process. There is no cost to apply.
In the same way as your Tax File Number never changes, the 15-digit identifier (DIN) is retained by the director for life, regardless of whether they change companies, cease to act, change their name or move interstate or overseas.
Amongst other things, the introduction of Director IDs will serve to deter illegal phoenix activity, whereby companies are liquidated or abandoned and avoid paying their debts, only to have the directors pop up again and continue the business under a new company name. It has been hard to trace the directors of these companies especially if they quote a different residential address or alter their name ever so slightly on the new company’s registration documents.
· If you are a director at 1st November 2021 you must obtain you DIN by 30 November 2022.
· If you become a director after 1st November 2021, you’ll need a DIN within 28 days
· From April 2022, all new directors must have the DIN Before that can be registered as a director.
Penalties for non-compliance
The penalties for non-compliance are steep. Directors who fail to obtain a DIN within the required timeframes may be issued an infringement notice and could face criminal charges and/or civil penalties of up to 5,000 penalty units (currently a staggering $1.11 million).
If you need help, give any of the team a call on (03) 9585 7555 or email email@example.com