The Australian government have implemented a requirement for directors of Australian companies to obtain a Director Identification Number (DIN). This means that SMSFs with a corporate trustee will require the directors to obtain a DIN.
What is a Director Identification Number (DIN)?
A DIN is a permanent and unique identifier for a director and remains the same throughout their professional life, regardless of the number of companies they may be associated with. The use of DINs is mandatory for all new directors appointed to an Australian company after 29 March 2018, including SMSF corporate trustees. Existing directors who were appointed before this date have a deadline of 28 September 2023 to obtain a DIN.
What's the purpose of the DIN? Why is the government bothering to make everyone go through the process?
The use of DINs helps to enhance corporate governance and improve the transparency of the Australian business environment.
The use of DINs helps provide a more complete and accurate picture of a director's appointment and resignation history, which is valuable information for investors and other stakeholders who may be considering investing in a company. This information can help identify potential red flags, such as a pattern of resignations from directorships, which may indicate governance issues or prevent the use of false or fraudulent director identities.
In addition, the use of DINs makes it easier for ASIC to track and enforce penalties for non-compliance with the Corporations Act 2001 and other relevant regulations. This is important for maintaining the integrity of the Australian business community and ensuring that all companies and directors operate in a fair and transparent manner.
How can directors of an SMSF corporate trustee obtain a DIN?
Obtaining a DIN is a simple and straightforward process that can be completed online through ASIC Connect, the online platform for ASIC's services. Directors of SMSF corporate trustees must provide their name, date of birth, and contact details in order to obtain a DIN. The verification process conducted by ASIC will ensure the accuracy of the information provided.
In conclusion, directors of SMSF corporate trustees are required to obtain a DIN as part of the government's efforts to improve corporate governance and promote transparency in the Australian business environment. Failure to obtain a DIN by the deadline may result in fines and penalties.
Ready to fulfill your SMSF corporate trustee DIN obligations? Let us guide you through the process.
This blog has been prepared for the purposes of general information and guidance only. It should not be used for specific advice or used for formulating decisions under any circumstances. If you would like specific advice about your own personal circumstances, please feel free to contact us on 02 9411 5422. We can help make sure the right method is used to give you the maximum possible tax deduction associated with any of these methods.
