What is a Director ID?
The Director ID is an initiative that requires all company directors to have a unique identification number. Its primary purpose is to deter and detect phoenix activity by ensuring directors can be traced across companies and to prevent the creation of fictitious identities.
The Director ID is a unique 15 number that is a little like a Tax File Number (TFN) in that each person will generally only ever have one number even if they are directors of more than one company. In other words, your director ID is personal to you rather than linked to a particular company.
Why do I need a Director ID for an SMSF?
They are relevant for SMSFs because most SMSF members have a company as the trustee of their fund. Even if this is the only company someone is a director of, they will still need a director ID.
How do I apply for a Director ID?
Details of how to complete the application process are below. You will need to be able to prove your identity using documents as outlined. You'll also need other information the ATO knows about you such as bank account details, an ATO notice of assessment, a dividend statement for shares you own in your own name, a Centrelink payment summary etc. You won't be able to use the details of your SMSF to confirm your identify.
To speed up the process, have multiple sources of information handy before you start.
Follow these steps to apply for a Director ID for your SMSF
You can apply for a Director ID via an online application:
- Visit the ABRS website (abrs.gov.au) https://www.abrs.gov.au/director-identification-number/apply-director-identification-number
- You'll need to create a ‘myID’ account if you don't have one
You will be required to enter the following information:
- Personal details (full name, date of birth, place of birth)
- Residential address
- Identity verification documents
- Details of directorships (current and planned)
You'll need to verify your identity electronically using acceptable documents like:
- Australian passport
- Driver's licence
- Birth certificate
- Medicare card
Processing time:
- Applications are usually processed immediately if identity verification is successful.
- If additional verification is needed, it may take longer
- You'll receive your 15-digit Director ID once approved
Application fee:
- The application is free
Important notes:
- Each person can only have one Director ID for life
- It's an offence not to have a Director ID when required
- You must apply for your Director ID prior to setting up your SMSF
If you need help to set up your Director ID:
Follow this link for details of how to apply. This webpage includes a short video explaining the process.
Unfortunately this is not something your accountant, adviser or SMSF administrator can do on your behalf – all of us must apply for our own Director ID via one of these methods.
