This update follows on from Greg Quin’s articles from 2019 and 2020 regarding the concept of Director Identification Numbers (“DIN”) and The Treasury Laws Amendment (Registries Modernisation and Other Measures) Bill 2019.
We can now advise that Treasury, on 29 March 2021, released a consultation paper surrounding the planned rollout and implementation of its new ‘Modernising Business Registers’ legislation, which includes the much anticipated DIN system.
Pursuant to the consultation paper, directors appointed under the Corporations Act 2001 will be given up until 30 November 2022 to obtain a DIN, while directors appointed under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 will be given up to 30 November 2023 to obtain a DIN.
It is proposed that the DIN system will be administered by the Commonwealth Registrar under legislation and as a separate statutory function of the Australian Taxation Office.
Directors will be issued with a unique DIN, which they will hold permanently, much like a passport or drivers licence number. This unique DIN will follow a director across any company appointments they may take and cannot be used by any other individual.
As previously discussed, the aim of the DIN system is to enhance the traceability of directors who engage in illegal phoenixing activity and also to act as a deterrent for any directors looking to engage in any such activities in the first place.
The implementation of the DIN system, will assist in eradicating inconsistencies within the ASIC registers which are currently present as a result of directors being able to hold multiple profiles due to the use of shortened names or aliases.
We will endeavour to provide you with further updates surrounding this matter when additional information becomes available.
About the author
Benjamin Mitchell is a Senior Insolvency Accountant at HLB Mann Judd Insolvency WA. Benjamin assists the Principal and Director with the many Corporate and Personal insolvency appointments managed by the HLB Insolvency team.
If you have any queries about insolvency matters, please feel free to contact the team on 08 9215 7900.