The new director identification number (DIN) came into force from 1 November 2021 and all directors, including directors of a self-managed super fund (SMSF) trustee company are required to have a DIN.
The ATO statistics from June 2020 found that about 63% of all SMSFs have a corporate trustee and about 690,000 of existing trustee directors will need to take action.
A DIN is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity. The DIN is a unique and permanent identifier issued by the Australian Business Registry Services (ABRS) to combat and prevent fraud. Eventually every director will have a single ID, regardless of the number of directorships held. Any individual who is a director or acting as an alternate director, must register.
When will you need a DIN?
When a director is required to apply for a director ID will depend on the date that they became a director.
|Date you became a director||Date you must apply|
|On or before 31 October 2021 |
|By 30 November 2022 |
|Between 1 November 2021 and 4 April 2022 |
|Within 28 days of appointment |
|From 5 April 2022||Before appointment|
How to apply for your DIN?
There are three ways to apply for a DIN:
- Online application via the myGovID app. This is different to myGov and is the quickest way to obtain a DIN.
- Phone application.
- Paper application (which is the slowest process).
All methods require proof of identity documents, however certified copies are also required if using the paper application option.
Directors must apply for their director ID personally as they need to verify their identity. No one else can apply on their behalf. This may prove challenging for some directors.
The ATO manages the application process and recommends the on line application.
Further details on DIN the application process can be found on the ABRS website:
Where a director refuses, or is unable to comply, it is expected that ASIC would stop their directorship. Where the company is acting as a trustee for an SMSF this may cause a breach of the SMSF director/member rules which would need to be rectified within 6 months. Such rectification may require the member to leave the fund.
Andrew heads the Self Managed Superannuation team in Sydney. He joined HLB Mann Judd Sydney in 2001 from the Australian Taxation Office in which he held senior roles in the areas of Income Tax, SME Audit, GST and Superannuation. Andrew’s expertise lies in Superannuation. He provides advice to superannuation funds with a focus on SMSFs and high net wealth investors in the areas of taxation, retirement planning, audit and regulatory compliance. He is one of the “Top Gun” specialists in HLB network and widely recognised as one of the foremost advisors on SMSFs in Australia. Not only is able to provide high level technical advice, but also able to tailor that advice on a practical and commercial level. Andrew has that “peripheral vision” that is rare amongst advisers these days. He is able to see things and anticipate scenarios and then provide outcomes that are in the best interests of his clients. You can speak with Andrew on LinkedIn .