Director ID Number - Eligible Directors

Don’t you just love the fact that the ATO is only now developing Comms and guidelines on the ABRS website that all existing directors as at 31 October 2021 who may have resigned or deregistered their dormant company during the transitional period, are still required to apply for a director ID. Even if they are no longer a current director as at the 30 Nov 2022 deadline.

Mmm how’s that for an 11th hour complication.

If a person no longer has any directorships, nil, nada! Then they also no longer have the need for an ASIC Agent.

Good luck with that ATO.

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Thank you for the information, Viola! Good to know but agree it’s unlikely to happen for people who have already resigned or deregistered a company.

We have no record of clients this would apply to.

They will not be aware of the requirement themselves.

We also have elderly clients who have been born overseas and don’t have the appropriate Australian ID who have resigned as directors simply to avoid having to register for a Director ID!

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Yep. Not losing sleep over this one.

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Hi @ViolaPythas and @Anne.Wright

I have since followed this up with the ABRS for clarification.

The view of the ABRS is, that if a director was a director on the 1st of November 2021, then they are required to get a Director ID.

If the director has since ceased, or the company has been de-registered or is in external administration, As the Director was still a director on the 1st of November 2021, they are still required to get a Director ID.

There will be more information added to the ABRS website in the near future regarding this.

Hope this helps

Warren

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Thanks Warren, appreciate the confirmation, definitely creates some complications!
Good of them to make this clear from the start! :roll_eyes:

Hi @WarrenRenden

The MBR comms team has clearing dropped the ball on this one. You and I are both on the ATO’s Business Advisory Group for the MBR project and yet this interpretation came as a surprise to us in Septmeber 2022 - almost a year later. There should have been no confusion as to who was required to apply. :roll_eyes:

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@WarrenRenden Any chance you can create a report in CAS360 that will show director resignations since 1st November 2021? :slight_smile:

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What happens if a director has died in that period?

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@WarrenRenden
I called the ABRS (Reference number 1052041692155) this morning to confirm the rules about Directors that have resigned in the past 12 months still requiring to apply for a Director ID.

The consultant said no, they will not need to apply for a Directors ID. He pointed out that the application process asks you if are or intend to be a director of a company.

He confirmed that if we are resigning a client as a director today, they will not have to apply for a Director ID as ASIC will be providing current information to the ABRS to collate information as at 30 November 2022 of current Directors.
Monique

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Thanks Monique.

@WarrenRenden Are you able to post the latest advise from the MBR team this morning regarding this to put it to bed. I wasn’t able to make it to the meeting so you will be better placed than I to confirm what they said.

It’s shameful that this mixed messaging merged from the Director ID team at this stage of the transition to begin with.

Thanks

Hey @ViolaPythas and @corporateservices

I have been following up on this with the ABRS and they are going to provide a response soon. I will post here when I have an update.

Warren

Hi @kim1

The ABRS have confirmed that any deceased directors will not be followed up with any action.

Hope this helps

Warren

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Hi Warren,

Any update regarding the requirement yet?

I have a few Directors retiring soon and they are wanting to know if they still need a Director ID or not.

Thanks for following up on this for everyone.

Kate

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Hi,

Just seeking further clarification on this also, a lot of what i’m reading seems to only refer to directors who have resigned from SMSF Trustee companies needing an ID regardless but doesn’t clearly state if this applies to all other company types.

How concerned should we really be for those who have resigned/deregistered companies prior to the 30 Nov deadline.

Hi Melissa, agree that this topic of resigning directors has mostly centred around directors who have resigned from SMSF Trustee companies. I can’t see how any carve out would be made for one ‘type’ of director over another director. Directors have the same directors’ duties under the Corporations Act regardless of the activities of the company. The same laws would relate to all directors.

I believe the ABRS website is currently being updated to clarify this topic.
An official statement has been requested from the Director ID team, but this hasn’t yet been provided. An update is anticipated at the next ATO Business Advisory Group meeting on 3 November.

There has been a lot of conflicting advice. The latest advice I’m seeing is that ‘anyone who was a director on November 1, 2021 is required to obtain a director ID regardless of their current directorship status’.

I have an opinion regarding your last question, but nothing I can post publicaly here…

Hi Viola,

Nothing like leaving it to the final hour for confirmation to keep us on our toes.

Do you mean anyone who was a director on 1 Nov 2001 or 2021? because that would be an even bigger headache…

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Thank-you for this!! It is the first thing I have found where the ABRS have given logical and informative advice in relation to this issue.

I just re-read the application wording and am now comfortable in telling my clients there is no need to apply, they are in fact ineligible to apply. If the unthinkable happens and these clients are pursued in this regard the application will be evidence enough of why they didn’t think it applied to them.

Thanks again

Hi, has anyone had any further updates on these requirements. Following up clients that have deregistered their companies is proving to be difficult. One in particular deregistered 3 Nov 2021. I truly can’t see how they can sign off on the application with the wording on the Eligibility of being a Director.
We have also an overseas Company that has a Director that isn’t a client that has resigned that has now moved to another Country no forwarding contact details.

Is the ABRS/ASIC relying solely on accountants to filter this information to our clients. I am nervous of clients falling through database cracks, that perhaps haven’t been onboarded etc?

Hi Naomi,

We are NOT chasing our resigned/ceased directors to apply for their Director ID number if they are no longer an active director and will not be an active director on any company on or after 1 December 2022.

There will be a legislative Instrument issued very soon by the Registrar which will become effective 1 Dec 2022 which will exempt a certain class of directors from being classified as eligible directors who must apply. The instrument will remove the obligation for ceased directors to apply and it is anticipated to be released for public consultation this month. Better late than never.

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Hi All,

It has now been released publicly that the ABRS is looking to exclude creased directors from the Director ID requirements.

Link here - ATO ditches November ID deadline for resigned directors | Accountants Daily

These are the proposed instruments at this stage, and they still, need to be approved.

Warren

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