Tax Management & Compliance
ASIC Compliance
What is ASIC Compliance?
ASIC stands for Australian Securities and Investments Commission which is an independent commission governed by the Australian Government. Their role is to regulate companies and financial services by enforcing laws that aim to protect Australian consumers, investors and creditors.
ASIC follows the Corporations Act 2001 (Cth), which outlines the laws and regulations businesses are expected to follow.
Why ASIC Compliance is important to businesses
It’s important that businesses understand their responsibilities and obligations with complying to ASIC because failure to do so can lead to serious consequences
ASIC has the ability to take legal court action on those who do not comply with their laws. The extent of the consequence will depend on the seriousness of the act committed by the businesses.
Directors ID's
APPLYING FOR A DIRECTOR IDENTIFICATION NUMBER
We are writing to you to let you know about new legislation that requires all directors of Australian companies to have a director identification number (DIN).
You will need to apply for a DIN if you are a company director. This includes if you are director of your SMSF corporate trustee or family trust.
You will also need to apply for a DIN if you are acting in the capacity of an alternate director, even if you are appointed for a specified period or a temporary basis.
What is a DIN?
A DIN is a unique 15-digit identifier that a director will apply for once and will keep forever. A director can only have one DIN that they must use for all companies.
The purpose of introducing DINs is to prevent the use of fictitious director identities, assist regulators trace directors’ relationships with companies and better identify directors involved in unlawful activity.
When do I need to apply for a DIN?
When you must apply for a DIN depends on the date you became a director.
The table below summarises the key dates of when you need to apply for a DIN.
|
Date you were appointed a director |
Date you must apply for a DIN |
|
On or before 31 October 2021 |
By 30 November 2022 |
|
Between 1 November 2021 and 4 April 2022 |
Within 28 days of appointment |
|
From 5 April 2022 |
Before appointment |
How do I apply for a DIN?
Unfortunately, we are unable to apply for a DIN on your behalf. You must apply for your own DIN to verify your identity. We can however assist you by advising you of the steps and timelines involved.
Firstly you will need to visit the ABRS website (abrs.gov.au).
Click on “Director identification number” near the top of the homepage:
or
scroll down to “Apply for your director ID”
To apply for the DIN, please see below Step by Step guide.
ASIC Resources
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