Two Directors Just Got Fined $10,000 Each. Do You Have Your Director ID?
This is not a hypothetical risk. In May 2026, two NSW directors were convicted in court and fined $10,000 each. Their offence was simple. They did not have a Director ID.
One of them was a director of four companies. The other was a director of twenty-seven. Neither had completed a step that takes most people about fifteen minutes.
What a Director ID Actually Is
A Director ID is a unique 15-digit number assigned to you personally, not to your company. It stays with you for life, across every company you ever direct.
It exists to stop fake or fraudulent directors being used to set up companies. Every legitimate director of an Australian company needs one.
Who Actually Needs One
If you are a director of an Australian company, you need a Director ID. This includes directors of registered Australian bodies, registered foreign companies, and Aboriginal and Torres Strait Islander corporations.
If you are about to become a director, you generally need to apply before your appointment takes effect, not after.
This rule has applied since April 2022. It is not new. What is new is how actively ASIC is now enforcing it.
Why This Is Suddenly in the News
ASIC has been cross-referencing its company register against the Director ID database. This makes it far easier to spot directors who never applied.
The May 2026 case was not an isolated example. ASIC has said Director ID enforcement now sits alongside its broader campaign against phoenix activity and director misconduct.
In other words, this is an active, current enforcement priority. It is not a forgotten rule from a few years ago.
What the Penalties Actually Look Like
The maximum penalty for not having a director ID when required is 60 penalty units. At current rates, that is $19,800.
The two NSW directors were fined $10,000 each, well within that range. Both were convicted in court, not just sent a warning letter.
Beyond the fine itself, ASIC can also use non-compliance as supporting evidence in broader investigations, including phoenix activity and insolvent trading matters.
How to Check If You Already Have One
Many directors genuinely do not know whether they applied years ago or not. This is worth checking directly rather than guessing.
If you are unsure, the fastest path is to log into ABRS online services using your myID. If you do not already have one and need to check, contact ABRS directly rather than assuming.
Never apply for a second Director ID if you think you have simply lost your original number. Holding more than one is itself an offence.
How to Apply If You Don’t Have One
Applying online is the fastest method for most Australian residents and can take as little as fifteen minutes if your identity details match your existing records.
If you are based overseas or lack standard Australian identity documents, a paper application is required instead. This path takes considerably longer, often six to eight weeks, so it needs to start well before any planned appointment.
What to Do Now
Check whether you already hold a Director ID. Do not assume, particularly if you became a director some years ago.
Apply immediately if you do not have one. The online process is quick for most Australian residents.
Check every other director in your company too. If you are responsible for company records, this is worth confirming for your whole board, not just yourself.
Start early if you are based overseas. Paper applications take significantly longer and need certified documents.
Frequently Asked Questions
Do I need a new Director ID for each company I direct? No. You only ever need one Director ID. It applies across every company you direct, for life.
Does my company need to report my Director ID to ASIC? Generally, no for standard companies, though you must provide it to whoever maintains your company’s internal director records.
What if I genuinely forgot to apply years ago? Apply now. Acting voluntarily before ASIC identifies the gap is a far better position than waiting to be caught.
Get Your Compliance Checked Talk to Edulink
Director ID is one of several compliance basics that quietly catch business owners out. A quick check now avoids a much bigger problem later.
Edulink Payroll Services supports small business owners across greater Sydney and Campbelltown with bookkeeping and compliance, with pricing from $750 per employee, per year.
Have more employees? Call us for a discounted rate.
📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
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