Directors of organisations must apply now for their director ID - Trendsight

All directors of corporations, registered Australian bodies, registered foreign entities, and corporations owned by Aboriginal and Torres Strait Islanders identities must now have director IDs.

The purpose of a director ID is to stop the use of fictitious or fraudulent director identities. A director will only need to apply for one director ID, to which they are required to retain it permanently.

You are likely to be a company director if your small firm is labelled using a proprietary limited (“Pty Ltd”) structure. Anyone else who plays a significant role in your company, usually a spouse, sibling, or parent, may also act as a director.

How a director ID works:

An individual who has confirmed their identity with ABRS and is a director (or who wishes to become a director) is granted a director ID, a 15-digit identification number.

A director ID:

  • starts with 036, which according to International Standard ISO 3166 is the three-digit country code for Australia.
  • ends with an 11-digit number that includes a verification number to identify errors.
  • Each director must submit an application for a director ID. Applying is cost-free.

Every director will have a unique director ID. And it will stay with them regardless of the following:

  • When one wishes to change companies
  • When one wishes to resign as a director
  • When one wishes to change their name
  • When one wishes to relocate within the country or abroad

Why a director ID is necessary

The names and details of a company’s directors are information that shareholders, workers, creditors, consumers, external administrators, and regulators are entitled to know.

By law, all directors must first confirm their identification with ABRS before being issued a director ID. This is pivotal because it will:

  • Avoid using illegitimate or fake director identities.
  • Make it simpler for administrators outside the company and authorities to track directors’ interactions with businesses over time.
  • identify and eradicate director participation in criminal behaviour, such as illicit phoenix activities.

When a business is liquidated, wound up, or abandoned in order to avoid paying its obligations, this is known as illegal phoenix activity. The identical business operations are subsequently carried out by a new firm that has no debt. When this takes place:

  • Employees lose out on pay, benefits, and superannuation.
  • Unpaid vendors or subcontractors are used.
  • Other companies are put at a disadvantage while competing.
  • Revenue that could have supported community services is lost to the community.

Who needs a director’s ID?

A director ID is required if you are an elected officer of:

  • A corporation, registered body in Australia, or foreign entity under the Corporations Act 2001 (Corporations Act)
  • A corporation that is registered in accordance with the Corporations (Aboriginal and Torres Strait Islander) Act of 2006 (CATSI Act).

A person appointed as one of the following is an eligible officer:

  • a director.
  • a replacement director serving in that position.

One director ID will always be sufficient. If you are appointed as a director of another company or corporation, you do not need to apply for another one.

To establish your identification, you must apply for your own director ID. No one may submit a request on your behalf.

Meeting your obligations

Your requirements for a director ID include:

  • requesting a director ID within the appropriate date for your circumstance.
  • requesting a director ID when the Registrar instructs you to do so.
  • avoiding requesting more than one director ID (unless directed by the Registrar to do so).
  • not giving a false director ID to a Commonwealth organisation, business, registered Australian organisation, or Aboriginal and Torres Strait Islander corporation.
  • not taking part in a violation of the aforementioned director ID responsibilities.

You can apply for your director’s ID through myGovID. A director’s ID is absolutely necessary if you are intending to take over a director’s position in an organisation.

Trendsight is a construction bookkeeping service provider that enables you to concentrate on the expansion of your business without worrying about keeping track of all your financial details. To learn more about our services and other advice regarding your business, give us a ring today at 03 9344 1566 or visit our website at

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