A recent article on the Governance Institute of Australia’s website highlights some of the things that people in the Company Secretary role in charities and not-for-profits will need to know regarding the new Director IDs system that is coming into place.
According to the Governance Institute of Australia, this is a significant concern from members and they have been getting a large number of queries particularly from this sector with regards to Director IDs, both in times of timelines and who exactly will need to comply.
With that in mind, here are the key things that the Company Secretary will need to be aware of:
- Many Directors will need to apply for a Director ID
According to the Governance Institute, when you need to apply by depends on when you were appointed. “The Australian Taxation Office (ATO) recently launched the new Australian Business Registry Services (ABRS) website, ahead of applications opening in November. For more information visit the ‘who needs to apply and when’ page,” the article notes.
As for who needs to apply – anyone who wants to become a director or already is one will need to have their applications in from November this year.
There is, however, an exception, as the Governance Institute notes: “Directors of incorporated associations registered with the ACNC do not need a Director ID… A very limited exception to this is directors of incorporated associations that have an Australian Registered Body Number (ARBN) in order to operate outside their ‘home’ state or territory. Directors of an incorporated association with an ARBN will need a Director ID – even if they are not ACNC registered.”
- When you need to apply does vary
For existing Directors, appointed on or before October 31, 2021, you have until November 30, 2022, to apply for your Director ID. For new Directors, however, the time frame is much shorter – Directors appointed between November 1, 2021, and April 4, 2022, will need to apply for their Director ID within 28 days of the appointment.
- The process is straightforward
According to the Governance Institute, the process for applying for the Director ID is a simple, three-step process.
- Step 1 – Get your MyGovID.
- Step 2 – Complete proof of record ownership via the ABRS website from 1 November 2021. This process involves verifying your identity.
- Step 3 – Fill out the Director ID application form. This simple form will also be available on the ABRS website from 1 November, 2021.
- Non-compliance will come with significant penalties
The Director ID is not optional, and comes with significant potential penalties. According to the Governance Institute, the initial plan isn’t to be punitive in enforcing these penalties, however the Company Secretary should be advising each Director to get the process started right away.
For more information on Director IDs and what the Company Secretary should be aware of, click here.
0 Comments