Director Identification Numbers: What is required for SMSFs

If you have a self-managed super fund (SMSF) with a corporate trustee, then you should already have applied for, and been issued with, a Director Identification Number (Director ID).

The Director ID system forms part of the Australian Government’s ongoing modernisation and streamlining of their record-keeping systems, which includes the details held for directors of companies.

Essentially this new system was designed to improve the integrity of records that are kept.

These measures also form part of a wider government crackdown on illegal activity. It is hoped that recording the identity of company directors will increase the transparency of companies and discourage illegal activity.

While directors of all companies and registered Australian bodies are affected, this article focuses solely on the requirements that apply for SMSFs with a corporate trustee.

Keep in mind that all members of an SMSF with a corporate (company) trustee are required to be a director of that company.

Also note that the same registration requirements apply if you are acting as a trustee (director) in place for another person under an authority given to you (such as an enduring power of attorney or guardianship arrangement), or where you are acting as an alternate director for a company.

What is a Director Identification Number?

A Director ID is a unique 15-digit identification number given to a director after they have verified their personal information and identity with the ABRS.

As mentioned earlier, a Director ID will then be used to verify the identity of directors when dealing with government departments. Overall, it should assist in streamlining the process to identify an individual.  

Once issued, the Director ID then ‘attaches’ to the applicant and will remain in place throughout their life. So only the one Director ID can be applied for and issued per individual.

A Director ID will remain attached to your records even if you resign as a director or leave Australia.  

When do you need to apply?

As mentioned earlier, if you already act as a director of an SMSF’s corporate trustee, then you should already have applied for a Director ID and you should have already received your own unique number.

For others who may be looking to set up an SMSF with a corporate trustee, then keep in mind that you will need to apply for and obtain your own unique Director ID before the SMSF and corporate trustee can be established. 

It is important to note that you will need to go through the Director ID application process yourself. No one else can complete the application process for you. If you have a professional that assists you with your SMSF, such as an accountant or tax agent, they are not allowed to apply for a Director ID for you. It would, however, be prudent to inform your accountant or tax agent once you have obtained your Director ID.

How to apply