Introducing the new
Director Identification Number

Change is coming!

Australia is enhancing the integrity of company formation and acquisitions through a new method of identifying company directors

A quick summary of the change in law

Every new and current company director will soon require a Director Identification Number (DIN). It is yet to be announced when the regulation will be activated.

The DIN is unique to the director and enables secure tracking of their relationships across all the companies they have been involved with.

There are big benefits to the new system. Using the number instead of personal details such as a name and address, ensures efficient set up, transfer and closure of companies. And as a huge boost to data integrity and security, the DIN will also prevent the use of false identities. As such, the DIN will tackle illegal phoenix activity.

Phoenixing occurs when controllers of an indebted company actively avoid paying debts such as government taxes, suppliers and employee wages and superannuation by shutting down and transferring assets to a new company. It is estimated that phoenixing costs the Australian economy up to $5.1 billion every year.

Details about the upcoming DIN application process

An application for a DIN must be submitted within 28 days from the date a person is appointed directorship. The DIN will be granted by the registrar only when the identity has been confirmed. Unless they are provided an exemption or extension, directors will face penalties for not applying within that time frame.

There are penalties also for providing false identity information to the registrar, providing a false DIN to the government or a corporate body, and intentionally applying for multiple DINs.

All existing directors will have 15 months to apply for a DIN from when the new law comes into place.

More details soon

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