Understanding Australia’s Director Identification Number
I‘m always on the lookout for articles with the potential to positively change a business. What’s your take on the following points I came across recently?
In its 2020 Budget Digital Business Plan, the Australian government announced the full implementation of the Modernising Business Registers (MBR) program. The program is designed to both establish the new Australian Business Registry Services (ABRS), and enhance how businesses register and manage their information with the government.
Although the ABRS rolls out progressively between 2021 and 2024, one of the immediate changes is that business directors must obtain a director identification number.
Here is what you need to know.
1. Director identification number definition
A director identification number is a unique number you as a director apply for once and keep forever. It’s designed to prevent the false or fraudulent use of your identity.
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The number is 15 digits long and is allocated to any director—or someone who plans to become a director—who has verified their identity with the ABRS. All Australian director identification numbers start with the digits 036 (Australia’s country code under International Standard ISO 3166), and end with an 11-digit number plus one digit designed for error detection.
This ID number is yours forever, even if you change companies, stop being a director, change your name or move overseas.
2. Why do you need a director ID
Verifying your identity with the ABRS helps prevent fraudulent or false IDs from being used, which makes it easier for regulators to trace directors’ relationships with companies over time and identify and eliminate unlawful director activity. It safeguards your identity and reduces the chance of identity fraud.
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