Director Identification (Director ID) Regime

Director Identification (Director ID) Regime (a mandatory requirement for company directors imposed by the Australian Business Registry Services - ABRS)

What you need to know

We have all heard about it, Illegal Phoenixing.

This is where company directors abandon the company or transfer the business of an existing company to a new company, leaving debts with the old company. The old company is placed in liquidation or abandoned, and once a liquidator is appointed, there are no assets to recover, which means the creditors cannot be paid.

Once assets are transferred to a new company, the directors continue to operate the new business where they enjoy less debt level, and lower operating costs. Whereas the parties associated with the old company such as sub-contractors, creditors and employees are left unpaid and out of pocket, and at the same time government often must subsidise outstanding employee entitlements of liquidated companies and receive lesser, if no tax from the old company.

To prevent this from happening, a significant step is now in place for all directors (existing and future) to verify their identity with Director ID to

  • prevent the use of false or fraudulent director identities
  • make it easier for external administrations and regulators to trace director’s relationships with companies’ over time
  • identify and eliminate director involvement in unlawful activity.

What is a Director ID?

A director ID is a 15-digit identifier given to a director (or someone who intends to become a director) who has verified their identity with ABRS. It’s free to apply, but they need to apply for their own ID (Agents or advisors cannot apply for a Director ID on behalf of a client). Director ID is kept forever even if they:

  • change companies
  • stop being a director
  • change their name
  • move interstate or overseas.

Effective date

From 1 November 2021.

Transitional Arrangement:

How to apply

Step 1 – Set up myGovID (steps below or go to )
(Note: myGovID is not to be confused with myGov)

  • myGovID is an app. You download the myGovID app to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
  • myGov is an account. Your myGov account lets you link to, and access online services provided by the Australian Taxation Office (ATO), Centrelink, Medicare and more.

Step 2 – Gather your Documents

You will need to have some information the ATO knows about you when you apply for your director ID:

  • your tax file number (TFN)
  • your residential address as held by the ATO
  • information from two documents to verify your identity.

Examples of the documents you can use to verify your identity include:

  • bank account details
  • an ATO notice of assessment
  • super account details
  • a dividend statement
  • a Centrelink payment summary
  • a PAYG payment summary (this is different to your income statement, and/or your PAYG instalment activity statement).

Step 3 – Complete your application

Once you have a myGovID with a Standard or Strong identity strength, and information to verify your identity, you can log in and apply for your director ID. The application process should take less than 5 minutes.

Should you need assistance in complying with this new Director ID regime, please contact Warren Maris on 07 3483 0100 of Magnus Business Advisers and Accountants.

How to set up myGovID app:

You will need:

  1. A smart device – Apple App Store or Google Play
  2. An email address
    As it’s your personal Digital Identity, you should set up your myGovID using a personal email address. It should not be a shared or work email address.
  3. To be 15 years or older
    Age restrictions may also apply to use some government online services.

Three Easy steps to set up your myGovID

1. Download the myGovID app

App Store
Google Play

2. Enter your details

Open the myGovID app on your smart device and follow the prompts. You need to enter your full name, date of birth and email address.

3. Choose your identity strength. The government online service you want to access determines the minimum identity strength you require. You can set up a Basic, Standard or Strong myGovID.

View more blog articles