The Treasury Laws Amendment (Registries Modernisation and Other Measures) Act 2020 amended the Corporations Act to introduce a director identification number (“DIN”) requirement.  All directors of Australian companies, including corporate trustee directors of SMSFs are subject to this new DIN requirement.

Objective of this measure

The objective of this new measure is to promote good corporate conduct and assist regulators to detect and address unlawful conduct by requiring each appointed director of a registered body corporate to have a unique DIN.

Date of effect

The effective date is two years after Royal Assent (22 June 2020) of the amendment legislation or such earlier date as may be proclaimed by the Governor-General.  The requirement will commence on 22 June 2022 unless an earlier date is set.

A new Commonwealth business registry scheme will be introduced and the DIN register will form part of this scheme.

Application

New directors

A director has to apply for a DIN prior to being appointed or within any later period specified in regulations.

During the first year of operation of this new requirement, a transitional arrangement will provide an extra 28 days for a director to apply for a DIN.  This means during the first year, a person has 28 days to apply for a DIN from the date they will be first appointed as director.

Existing directors

For persons who are directors at the time the new requirement commences, such persons have to apply for a DIN within the period specified in a legislative instrument to be made by the relevant Minister.  There is no requirement for existing directors to apply for the DIN until such instrument is made.

Operation

The DIN register will form part of the new Commonwealth Business Register Scheme which consolidates the ABR and 31 existing ASIC corporate and business registers.  The unified Commonwealth Business Registers will be operated and administered by the ATO.