In June 2020, legislation was passed to enable the rollout of Director Identification Numbers (DINs) for company directors. With those changes expected to commence within the next year or two, Treasury is now consulting on the new data standards and disclosure frameworks which will apply to DINs.
What does the legislation introduce?
The changes formed part of the 2018-2019 Federal Government Budget and broader Modernising Business Registers (MBR) Program. In short, the legislation will enable:
- the introduction of a new DIN, which will require each director to apply for a unique identifier that they will hold for life, thereby discouraging fictitious director appointments and facilitate traceability
- modernise and simplify the business registration framework into a single platform administered by the Commonwealth Registrar under legislation and as a separate statutory function of the Australian Taxation Office.
What is Treasury looking at?
The Treasury's current consultation process focuses on the new data standard and disclosure framework to support the DIN regime. Amendments to the Corporations Act 2001 (Cth) will allow the Commonwealth Registrar to make data standards on matters relating to the performance of the Registrar's functions and powers. These standards will:
- prescribe the information and declarations that are required in order to apply for a DIN, how applications can be made and how that information can then be collected, used and stored
- address the circumstances in which the Registrar can disclose protected information (including director ID information) to government entities, Public Governance, Performance and Accountability bodies, courts and tribunals.
Importantly, the Treasury also intends to consult on the transitional arrangements for directors, including extending the timeframe for directors to apply for a DIN during the initial stages of the regime.
Have your say
The Treasury's consultation period is open for comment by interested parties until 1 April 2021. If you are interested in providing a response, we can provide assistance to prepare your submission. Further information on submitting your response can be found here.
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