logo
Receive the latest mybusiness news
SUBSCRIBE TO OUR NEWSLETTER
Copyright © 2020 MOMENTUMMEDIA

New director ID sparks red tape fears

Adam Zuchetti
Adam Zuchetti
12 September 2017 1 minute readShare

While being touted as a means of reining in dodgy practices by rogue directors, the Director Identification Number (DIN) proposal has raised fears that SMEs will be tied up in yet more red tape.

Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell welcomed the move to introduce the DIN, but suggested the implementation could bring unintended burden for business owners.

“We support a unique identifier that will enable identification of rogue directors to ensure they can’t be involved in multiple instances of phoenixing,” she said in a statement.

Advertisement
Advertisement

“The challenge for the government is to ensure this is not just another number with more red tape.”

Ms Carnell noted that businesses already need to jump through hoops and complete significant paperwork to receive and maintain their Australian Business Number (ABN), Australian Company Number (ACN) and Tax File Number (TFN), as well as other industry and regulatory required licences and documentation.

 

“We want to see a scenario where all of this data is consolidated into a single portal that contains all relevant information.”

The government is hoping that by having registration of individual directors, it will be able to better track ownership of companies and establish links between previously unrealised related entities.

Theoretically, the implications could be far-reaching, enabling the government to better track tax liabilities and a range of other uses.

My Business understands that at present, ASIC does not retain data on companies that are wound down, given the high turnover volume.

SPONSORED CONTENT

 

What are your thoughts – is the Director Identification Number (DIN) a good idea, or simply more paperwork for already lumbered business owners? Share your thoughts below.

New director ID sparks red tape fears
mybusiness logo
Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016. 

The two-time Publish Awards finalist has an extensive journalistic career across business, property and finance, including a four-year stint in the UK. Email Adam at [email protected]

Leave a Comment

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of MyBusiness.

Read more

Latest poll

Should the government make further amendments to JobKeeper?