Director Identification Numbers are on their way with the Government recently passing legislation that will require all directors of Australian companies to be identified by a number unique to them.

It is hoped that the introduction of this new regime will reduce pheoenixing activity by limiting the ability for false identification to be used by individuals to establish companies with directors that cannot subsequently be held accountable for liabilities on the company when it is wound up.

It is understood that the DIN will be an 8-digit unique identification number which will be issued to an individual prior to them setting up a company.  For those that are directors of existing companies, it is likely that requests will be sent, similar to the process recently taken with MyGov, for identities to be established.

A firm start date has not been communicated, however, it is intended that it will come into operation during the first half of 2021.

We will keep you updated as more information is issued on this topic and we will be here to assist with transitioning you to the new regime once it is in place.

If you have any questions, please contact our office on 5221 6399 or email us at info@davidsons.com.au

 

Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article.