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Race to secure ID numbers before deadline

By Dylan J Stone

The Broken Hill Small Business Association is urging all company directors to ensure they have registered and received their Director Identification Number by the end of November.

All directors who are covered by the Corporations Act must have their identification number in place to allow authorities to track activities across various government databases. Fines of up to $13,000 will be introduced in a bid to prevent ‘dummy directors’ and ‘phoenixing’, and to ensure compliance with this new requirement.

This new obligation will be mandated for the directors of smaller companies, who in some cases might be sole directors, or have selected a company structure for their small business as opposed to a sole-trader structure.

Broken Hill Small Business Association Secretary, Jack Dickson, says all company directors are required under these new rules to have an identification number, there is no exception for smaller companies, and there is no minimum turnover amount that would exclude compliance with this obligation”.

“I am urging all small businesses to review their business structure, and if they are structured as a company, they must seek a director identification number before November 30. I cannot be clearer about this,” Mr Dickson said.

A small business owner, who was registered as a company, confirmed to the Barrier Truth they were unaware of this new obligation, and it was only through being interviewed for this article that they became aware of this new rule. It is understood that nationally, approximately half of the country’s 2.5 million company directors are yet to register an identification number.

“I don’t think this has been communicated very well, especially because we have been going through a busy period so information like this can slip through the cracks,” the business owner said.

“Now I understand the importance of ensuring this process is completed by the end of November, I am genuinely concerned for the smaller company directors who are still unaware of this requirement.’”

As there are fears many smaller business owners who are registered under a company structure are still unaware of this new requirement, an information campaign has now been launched by the local Small Business

Association to ensure small business owners are prepared.

Company directors who are seeking more information on the new requirements, or seeking to register an identification number, can visit https://www.abrs.gov.au/director-identification-number to review the requirements and to apply.

 

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