Australian Company directors are now required to create an identification number through myGovID that stays with them for life as the government moves to crack down on tax evasion malpractices. According to ASIC, some new companies continue the business of existing companies that have been liquidated or abandoned to avoid paying debts, which can include taxes, creditors, and employee entitlements.
The Director ID, also called myGovID, is the first beta service to be offered by the Australian Business Register Services (ABRS). Thirty-two business registers have been consolidated under the modernising business registers program.
Director ID is to be used for participating in government online services. myGovID uses encryption and cryptographic technology (which addresses topics such as hash algorithms, key management, authentication, and random number generation) as well as the security features in a device such as fingerprint, face unlock or password. This is to protect the identity and help stop other people from accessing personal information.
Directors will be able to create a standard and strong identity for which they are required to verify their passport, birth certificate or citizenship certificate and driver’s licence or Medicare card. Directors will have to create a myGovID digital identity before applying for a director ID. The Minister of Superannuation, Financial Services and the Digital Economy Jane Huma said on 1st of November that the director ID will reduce illegal activity.
Director ID will help to create a fairer business environment by improving data integrity, and allowing earlier identification of director involvement in unlawful practices, such as illegal phoenix activity. It will also help to prevent false and fraudulent director identities, which ensures business owners doing the right thing get a fair playing ground.
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