Around 200,000 directors have applied and been issued with a number over the past two weeks, with the total hitting 1.96 million as of 12 December, the ATO said.

But with a total population of about 2.5 million directors, that left half a million to apply over two days before the extended final deadline today, 14 December.

Absent a last-minute avalanche of applications, that means the scheme will attempt to prevent phoenix activity and other corporate misbehaviour with around 20 per cent of directors missing.

Moreover, the final tally will be unknown because the ATO has refused to update the number when the deadline has passed.

It said penalties would now be applied after they were suspended during the two-week extension period.

“Director ID is a requirement for all directors under the law,” an ATO spokesperson said. “Following the introduction of the measure in 2021 and a transitional period, the deadline for most directors to get their obligation was 30 November 2022. The ATO confirmed penalties would not apply to anyone who applied prior to 14 December 2022. 

“The community can expect the ATO will take a reasonable approach to directors who have genuinely tried to meet their director ID obligation but have not been able to due to their circumstances.

“Extensions are available for directors who have a legitimate reason why they have not yet been able to apply.

“We encourage all directors who haven’t already to apply for their director ID as soon as possible. We will take a reasonable approach to those directors who have tried to do the right thing.”

The ATO confirmed that the Australian Securities and Investments Commission (ASIC) was responsible for enforcing the scheme, and its website lists offences, including a failure to apply for an ID and failure to hold an ID, with both attracting criminal penalties of $13,200. Applying for multiple IDs or misrepresenting an ID is punishable by a $26,640 fine or a year in jail, or both.

An information campaign about the scheme has been running for around 18 months, with instructions translated into 10 different languages, including Chinese, Arabic, Vietnamese and Hindi.

With an estimated 35,000 Australian directors based overseas, the ATO said it had worked with the Department of Foreign Affairs and Trade “to share information on how to apply through their international advocacy network”.

While paper forms are available, the scheme encouraged applications online and that required a director to apply in person and to have a myGov ID — stipulations that frustrated many accountants who have attempted to get clients to comply.