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The Albanese government steps in with a publicity campaign after figures revealed only one-third of directors have applied for ID.
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Government ramps up director ID campaign as deadline looms
20 October 2022
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9 minute read
Assistant Treasurer Stephen Jones has launched an awareness campaign to encourage company directors to apply for an ID number as the 30 November deadline looms.
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The move to mandate ID for directors has stalled on the starting grid, with ATO figures showing around 1.6 million directors — almost two-thirds of the total — had yet to apply to the end of September.
The campaign will feature both widespread communications and targeted outreach to ensure all directors are aware of their obligations.
The government has raised concerns that some people may not realise they are directors so the campaign will target those that run SMSFs, small businesses, charities, not-for-profits and even some sporting clubs.
“Interestingly, some people don’t actually realise they are a director of a company. If you run a company that is a small business, SMSF, a not‑for‑profit or even a large sporting club, it’s quite likely that you’re a director, and you’ll need to apply for your director ID,” Mr Jones said.
“Don’t leave it to the last minute — if you’re a company director you must apply by 30 November — so make sure you make time to get it done.”
The director ID framework was introduced on 1 November 2021 and features a unique 15‑digit identifier. A company director needs to apply once and then keeps the ID forever.
The government said that by allowing regulators to trace directors’ relationships with companies over time, director IDs will help prevent illegal activity and level the playing field for businesses.
In numbers provided to Accountants Daily, the ATO stated that at 19 October 2022, more than a million directors have applied for a director ID from an estimated population of 2.5 million.
The ATO advised directors that the fastest way to apply for their director ID is online at abrs.gov.au.
"Once you’ve verified your identity with myGovID, you can complete your application online and your director ID will be issued instantly," said an ATO spokesperson.
In its annual Benchmark Report released in August, software firm Class warned that the process to obtain a director ID had been likened to a “silent compliance bomb” by the industry and that it would be a struggle to meet the pressing deadline.
“Even with the best intentions around SMSF compliance, it will be a struggle for the industry to meet the deadline,” the report said.
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