Beyond the numbers with Grant Thornton: Listen now
At our NFP seminar earlier this month, we held a session with Jennifer Moltisanti, Assistant Commissioner, Not for profit Centre and Government Relations at the ATO to discuss how the ATO engages with the NFP sector and what NFP leaders need to be across.
We’ve provided some informative slides from the session on the following topics:
Here are some audience questions asked during our recent NFP virtual seminar and answered by the ATO’s Jennifer Moltisanti around Director ID obligations for Not for Profits. You can also read more on this in our recent article
While the obligation is the directors’ responsibility to comply, all entities that will need directors to have a Director ID (or those that manage their compliance obligations and affairs) should be encouraging existing directors to apply for their ID as soon as possible (so not to avoid a ‘last minute’ rush in November 2022).
In so far as first-time (new) director appointments, we encourage directors to apply prior to their appointment. For this cohort, we would encourage the Director ID application prior to, or at the same time they are providing their consent to be a director. Under section 201D of the Commonwealth Corporations Act 2001 a company is required to obtain a signed consent to act as director from all directors, before they are appointed.
| Type of entity | What to look for |
| Public company (listed and unlisted) Any type of public company including a company limited by guarantee which is a common structure used for Not for Profit and charitable organisations. |
Australian company number (ACN) ‘Limited’ or ‘Ltd’ in name |
| Proprietary (private) company A proprietary company is the most common type of company. It is a common structure used for: - small businesses - a corporate trustee of a self-managed superannuation fund (SMSF). |
ACN ‘Proprietary Limited’ or ‘Pty Ltd’ in name |
| Aboriginal and Torres Strait Islander corporations An incorporated body designed to suit the needs of Aboriginal and Torres Strait Islander people. These corporations are registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 and regulated by the Office of the Registrar of Indigenous Corporations (ORIC). |
Indigenous corporation number (ICN) Name will include one of the following: - 'Aboriginal corporation’, ‘Torres Strait Islander corporation’ or a combination of both - 'Indigenous corporation' - 'registered native title body corporate' or 'RNTBC' |
| Registered foreign company Foreign companies that want to do business in Australia need to be registered under the Corporations Act 2001. All the Directors of a registered foreign company, including those who reside overseas, will need a director ID. |
Australian registered body number (ARBN) ‘Limited’ or ‘Ltd’ in name ‘Proprietary Limited’ or ‘Pty Ltd’ in name |
| Certain types of incorporated associations An incorporated association is a common structure used for Not for Profit organisations like sporting clubs and community groups. These organisations are regulated by state and territory governments. If an incorporated association trades outside the state or territory in which it is incorporated, it needs to be registered under the Corporations Act 2001 as an Australian registered body. If your incorporated association is an Australian registered body, the directors of the association need a Director ID. |
‘Incorporated’ or ‘Inc’ in name and an Australian registered body number (ARBN) |
| Registered charities Some Not for Profit organisations choose to register as a charity with the Australian Charities and Not for Profits Commission (ACNC). If your charity is a company, registered foreign company, registered Australian body or an Aboriginal and Torres Strait Islander corporation, the Directors of the entity need a Director ID. |
Any of the above. |
You don't need a Director ID if you're:
Please refer to the ABRS website for more.
A director or board member of a registered charity with an organisation type that is not registered with ASIC to operate throughout Australia will not be required to obtain a Director ID.
See: https://www.abrs.gov.au/director-identification-number/who-needs-apply-and-when#accordion-224
Director IDs are administered by the Australian Business Registry Services (ABRS) and not ASIC. Examples of the types of entities that will need directors to have a Director ID are provided in the table above in question one.
Essentially, you need a Director ID if you’re an eligible officer of:
If the entity you are enquiring about is regulated by either of the above Acts, directors are required to obtain a Director ID. See examples of those required in the table above. The ABRS website can also provide guidance.
You need to apply for your own Director ID. The fastest way to do this is online using the myGovID app. The ABRS website explains the steps for both online and non-digital application. Learn how to apply for your Director Identification Number here.
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