The Australian Taxation Office (ATO) is contacting company directors to remind them of their Director ID Number (DIN) obligations, chasing the 500,000 business leaders technically breaching corporate law by going without.
Launched by the ATO and the Australian Business Registry Services (ABRS) in late 2021, the DIN system is designed to crack down on illegal phoenixing by making it easier for authorities to track director appointments.
The scheme provides company directors with a unique, 15-digit code tied to their directorial duties.
Company directors had until the end of November 2022 to complete the process.
The penalties for going without a DIN are significant: civil penalties for failing to apply extend to $1.3 million, the Australian Securities and Investments Commission states.
But a lack of public awareness of the scheme, and reported difficulties with the myGovID sign-up system, meant as many as 700,000 of Australia’s estimated 2.5 million company directors missed the November deadline.
The ATO extended an amnesty period to mid-December, saying it would not take enforcement action against directors who filed their application after the deadline.
However, a massive proportion of Australian company directors are still without a DIN in 2023.
In a statement obtained by InnovationAus, the ATO said it is now contacting company directors to alert them of their obligations.
While the ATO says it takes enforcement action seriously, it will take a light touch with directors lagging behind on their application.
“In the first instance, directors will be provided with guidance on how to apply,” the statement read.
The ATO previously said it will crack down on those “deliberately” avoiding their obligations.
With an enormous number of directors yet to register, concerned business leaders are still posting on the ATO’s public forum to request help with their applications and myGovID sign-ups.
The ABRS has now published a video guiding company directors through the process.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
