Most small not-for-profits don’t need to worry about the advent of director IDs, now required by the Australian Taxation Office for many organisations, but there are exceptions.
The directors of an estimated 15,000 not-for-profits in Australia are now required to have the IDs as part of a move to crack down on fraud; however, exemptions include officers of unincorporated associations, cooperatives and incorporated associations.
The NFPs required to use the new director IDs include those structured as companies or Indigenous corporations, bodies registered with ASIC, and corporate trustees.
In some cases, incorporated associations wanting to operate in multiple states, without having to register separately in each state, can become a "registered Australian body" (registered with ASIC) and so they also come under the new rules.
The ID will be a unique 15-digit identifier for directors who have verified their identity with Australian Business Registry Services (ABRS).
Existing directors of those groups have until 30 November 2022 to apply, with new directors required to apply before their appointment.
Affected directors can apply online with ABRS using the myGovID app or over the phone. Organisations unsure about their status or needing to apply should check the Australian government guidelines or call the ATO’s NFP Infoline: 1300 130 248.
Directors are expected to keep the ID across different roles, businesses and countries.