Board directors from more than 15,000 not-for-profit organisations will soon be required to hold a new “director ID” aimed at stamping out fraud.
The new requirement targets companies, including not-for-profits, which are structured as companies limited by guarantee, or are Indigenous corporations.
The ATO's Damien Hobbin says new director IDs will affect some NFPs, although many will be exempt. Those exempted include directors of incorporated associations, unincorporated associations and cooperatives.
Australian Taxation Office assistant commissioner Damien Hobbin said the application process would start in November 2021. "Our initial focus will be on education and awareness and helping directors to do the right thing," he said.
The ID will be a unique 15-digit identifier for directors who have verified their identity with Australian Business Registry Services (ABRS).
Financial Services Minister Jane Hume said in a statement that directors would keep the ID across different roles, businesses and countries. She said the ID would "streamline" services and protect against fraud and illegal activity.
Directors can apply online with ABRS with myGovID app, but also over the phone and with paper applications, if needed.
Existing directors (appointed before October 31, 2021) must apply by November 30, 2022. New directors have 28 days to apply from the date of their appointment.