Company directors, including those of sports organisations, must apply for a director identification number (director ID) to avoid serious penalties (both criminal and civil). Director IDs allow the Australian Tax Office to be able to trace a director’s profile and the director’s association with companies throughout their careers. This will assist in preventing the use of fake director identities and improve the ability for regulators to associate a particular director with the companies they have served.
Director IDs are required for all directors and alternate directors of companies, registered Australian bodies (which includes incorporated associations with an Australian Registered Body Number), registered foreign companies, and Aboriginal and Torres Strait Islander corporations. They are not required for directors of incorporated associations (with no ABRN) registered with the Australian Charities and Not-for-profits Commission, company secretaries who are not directors, external administrators of a company, sole traders or partnerships.
To get a director ID, directors should make an application on the Australian Business Registry Services (ABRS) website. Applications are free of charge. Directors will need a myGovID to make an application and the application must be personally made by the director themselves. Directors only need to make an application once as director IDs are permanent.
When a director must apply for director ID depends on the date a person became a director.
- If the person was a director on or before 31 October 2021, they must apply for a director ID before 30 November 2022.
- If the person became a director between 1 November 2021 and 4 April 2022, they must apply for a director ID within 28 days of their appointment.
- If the person became/becomes a director on or after 5 April 2022, they must apply for a director ID prior to their appointment as a director.
Directors who do not comply with director ID legal requirements may be liable for serious criminal and civil penalties.
| Offence | Maximum penalties for individuals |
| Failing to have a director ID when required to do so | A fine of $13,200 (criminal)
A fine of $1,100,000 (civil) |
| Failing to apply for a director ID when directed to by the ABRS Registrar | A fine of $13,200 (criminal)
A fine of $1,100,000 (civil) |
| Applying for multiple director IDs | A fine of $26,640, 1 year imprisonment or both (criminal)
A fine of $1,100,000 (civil) |
| Intentionally misrepresenting a director ID as the director ID of that director or another director | A fine of $26,640, 1 year imprisonment or both (criminal)
A fine of $1,100,000 (civil) |
If you would like further advice on your obligations regarding director IDs, please contact our sports law team at SportsLawyer on (03) 9642 0435 or reach out to us at info@sportslawyer.com.au.
Disclaimer: Nothing in this article should be relied upon as legal advice. The contents of this article should be regarded as information only, and for specific legal matters, independent advice should always be sought. Please contact us on info@sportslawyer.com.au or phone (03) 9642 0435 to discuss any matter or to arrange an appointment.
