For more information about how Boss Lawyers can assist with director disputes matters, visit our Director Disputes page or call Mark Harley on 1300 267 711.
✅ Update — Director ID Scheme Now Live: This article was written in October 2018 when director identification numbers (DINs) were proposed legislation. The scheme is now law and fully operational. Key dates:
- Directors appointed before 1 November 2021: were required to apply for a Director ID by 5 April 2022 (deadline has passed).
- Directors appointed 1 November 2021 – 31 October 2022: were required to apply within 28 days of appointment.
- Directors appointed from 5 November 2021 onwards: must apply for a Director ID before being appointed.
- Applications are made through the Australian Business Registry Services (ABRS) at abrs.gov.au.
The references below to “proposed” law and “existing directors will have 15 months to apply” are historical and reflect the 2018 draft legislation. Current obligations are as set out above. For current guidance, see the “What Directors Need to Do Now” and “Penalties for Non-Compliance” sections further below.
Last reviewed and updated: April 2026
Company directors required to sign up for director identification numbers under new anti-phoenixing scheme
In October 2018, the Federal Government unveiled new laws requiring Australian company directors to obtain director identification numbers (Director IDs) as part of measures to tackle illegal phoenixing activity. Those laws have since been enacted and are fully in force — see the update notice above for current application deadlines.
The long-awaited director identification numbers (DIN) draft legislation has been released by Treasury, alongside measures to simplify business registration processes.
We wrote a paper and recommended that DIN’s be introduced to curb illegal phoenixing activity. The Federal Government seems to be now listening.
The identification measures have been designed to help the regulator detect, deter and disrupt phoenixing activity by tracking directors beyond individual businesses through a database of unique numbers.
The database will be administered through a new registry regime also being introduced, which will merge ASIC’s companies register with the Australian Business Register, currently kept by the commissioner of taxation.
The reforms are not expected to encounter political opposition and have been in the works for some time as part of broader efforts to simplify national business registers and make it easier to track directors.
The government indicated plans to draft legislation under measures outlined in the 2018-19 budget, following a response to a Productivity Commission report into the matter last year.
Director Identification Numbers (DINs) — what the changes mean for you
Under the law as enacted, directors appointed from 5 November 2021 must obtain a Director ID before being appointed. The CATSI Act has equivalent provisions.
Existing directors (appointed before 1 November 2021) were required to apply by 5 April 2022. That deadline has now passed.
There will be civil and criminal penalties for directors who fail to apply for identification numbers, while regulators may also issue infringement notices to those who fail to comply.
Only appointed directors and acting alternate directors will be subject to the new laws initially, meaning de facto or shadow directors will not be required to sign up.
In 2015, the Productivity Commission estimated illegal phoenixing activity — where a director transfers assets to a new business and then liquidates the old company, only to begin trading the new business — costs Australia between $1.8 billion and $3.2 billion each year.
Business registers to be simplified
In what Treasury has called a “modernisation” of federal business registers, there are plans to create a new business registry regime which will merge two existing company databases.
These are ASIC’s company’s register and the Australian Business Register (ABR), currently overseen by the commissioner of taxation.
For business, this will mean there will be one central register to provide information to, rather than several.
The aim is to simplify things for regulators and businesses by ensuring the new database is “flexible, technology neutral and governance neutral”.
Information relating to 35 existing registers would be subject to the new regime, including 34 registers currently kept by ASIC.
An existing regulator will be appointed to oversee the new register, although there’s no detail yet on which body that will be.
Acknowledgements: SmartCompany.
How Boss Lawyers Can Help
If you need guidance on this issue, our experienced team can provide practical, strategic advice tailored to your situation. Our practice areas include insolvency lawyers, commercial litigation lawyers.
Contact Boss Lawyers on 1300 267 711 or visit bosslawyers.com.au.
Disclaimer: This article provides general information only and does not constitute legal advice. You should obtain specific legal advice relevant to your circumstances before taking any action.
Penalties for Non-Compliance with Director ID Requirements
Failure to comply with director identification number (director ID) requirements carries significant consequences under the Corporations Act 2001 (Cth) and the Australian Business Registry Services (ABRS) framework. Directors who fail to apply for a director ID on time, apply using false identity information, or misuse another person’s director ID may face civil and criminal penalties.
Key penalties include:
- Civil penalties: Up to $1.1 million for individuals for serious contraventions related to director ID misuse or false applications.
- Criminal penalties: Imprisonment of up to 12 months for offences involving dishonest conduct in the director ID scheme.
- ASIC action: ASIC has enforcement powers in relation to director ID compliance and can refer serious breaches to the Commonwealth Director of Public Prosecutions.
How Director ID Numbers Help Combat Phoenix Activity
The director ID scheme is a central pillar of Australia’s anti-phoenixing framework. Phoenix activity — where directors deliberately liquidate a company to avoid debts and transfer assets to a new entity — has long been a significant problem for Australian creditors, employees, and taxpayers.
By assigning each director a unique, lifelong identifier that follows them across all corporate appointments, the director ID scheme makes it substantially harder for bad actors to:
- Establish multiple identities across different companies;
- Walk away from failed companies without accountability;
- Obscure their history of corporate misconduct from regulators and creditors.
ASIC and the ATO use director ID data to identify patterns of behaviour consistent with phoenix activity and take enforcement action earlier and more effectively.
What Directors Need to Do Now
All directors of Australian companies are required to have a director identification number. If you have not yet obtained your director ID, you should do so immediately through the Australian Business Registry Services (ABRS) portal at abrs.gov.au. The application process requires 100 points of identity verification and is completed online.
If you are concerned about your obligations as a director — whether in relation to director IDs, insolvent trading exposure, or regulatory compliance — Boss Lawyers provides expert advice to directors across Brisbane and Queensland. Mark Harley, Principal Solicitor, regularly advises directors on their statutory duties and how to protect their personal position when a company faces financial difficulty.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances. For expert advice, contact Boss Lawyers on 1300 267 711.
