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SMSFs targeted in government’s new director ID campaign
The Albanese government launched a new awareness campaign for director IDs, with figures last month indicating only a third had applied so far.
In a press release issued on Wednesday (19 October), Assistant Treasurer Stephen Jones announced that the government has launched a new awareness campaign encouraging company directors to apply for their director identification number (director ID), with the 30 November deadline fast approaching.
The new awareness campaign will feature both widespread communications and targeted outreach to ensure all directors are aware of their obligations.
The government has raised concerns that some people may not realise they are directors, so the campaign will target those that run SMSFs, small businesses, charities, not-for-profits and even some sporting clubs.
“Interestingly, some people don’t actually realise they are a director of a company. If you run a company that is a small business, SMSF, a not‑for‑profit or even a large sporting club, it’s quite likely that you’re a director, and you’ll need to apply for your director ID,” Mr Jones stated in the release.
“Don’t leave it to the last minute — if you’re a company director, you must apply by 30 November — so make sure you make time to get it done.”
The director ID framework was introduced on 1 November 2021. A director ID is a unique 15‑digit identifier that a company director will apply for once and keep forever.
The government said that by allowing regulators to trace directors’ relationships with companies over time, director IDs would help prevent illegal activity and level the playing field for businesses.
In numbers provided to SMSF Adviser, the ATO stated that at 19 October 2022, more than a million directors have applied for a director ID from an estimated population of 2.5 million.
The ATO advised directors that the fastest way to apply for their director ID is online at abrs.gov.au.
"Once you’ve verified your identity with myGovID, you can complete your application online and your director ID will be issued instantly," said an ATO spokesperson.
In its annual Benchmark Report released in August, software firm Class warned that the process involved in obtaining a director identification number (director ID) had been likened to a “silent compliance bomb” by the industry and that it would be a struggle to meet the pressing deadline.
“Even with the best intentions around SMSF compliance, it will be a struggle for the industry to meet the deadline,” the report stated.
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
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