ASIC’s enforcement of director ID obligations has tightened significantly over the past two years, with penalties now moving into the mid‑range of the statutory maximum and courts signalling a tougher stance on non‑compliance.
The first prosecution occurred in March/April 2024, when a NSW director was charged under section 1272C(1) of the Corporations Act 2001 for failing to hold a director identification number. Public reporting on the outcome is limited, but the matter marked the beginning of active enforcement.
By May 2024, penalties were being imposed. Two Western Australian directors were convicted and fined $5,000 each — one for failing to obtain a director ID at all, and another convicted ex parte. A further six directors were reportedly prosecuted in the months that followed, bringing the total to 11 known cases as at June 2026.
The most significant escalation occurred in June 2026, when two NSW directors were fined $10,000 each. One held directorships across four companies; the other across 27 — both operating in the construction sector. ASIC noted that the higher penalties “reflect the seriousness” of the offence and are intended to deter the broader director community. The statutory maximum penalty is 60 penalty units (currently $19,800), meaning recent fines sit squarely in the mid‑range.
What Directors Should Do Now
1. Confirm You Have a Director ID
Every director must obtain a director ID through the Australian Business Registry Services (ABRS). If you are already a director and have not applied, this should be treated as urgent.
2. Check Your Details Are Accurate
Ensure your director ID is correctly linked to all companies and that your personal details are correct. Administrative errors can still attract scrutiny.
3. Review Your Directorships
Directors with multiple appointments — especially in construction and other higher‑risk sectors — should ensure compliance across all entities.
4. Act Promptly When Appointed
The director ID regime included transitional deadlines when it commenced, which many directors missed — contributing to ASIC’s current enforcement focus. Those original deadlines were:
- Directors appointed before 1 November 2021 had until 30 November 2022 to apply.
- Directors appointed 1 November 2021 – 4 April 2022 were required to apply within 28 days.
- From 5 April 2022 onwards, intending directors have been required to apply before appointment.
Today, only one rule applies: Any person who is about to become a director must obtain a director ID before their appointment is effective.
5. Embed Governance Processes
Businesses should incorporate director ID checks into onboarding and governance frameworks, including maintaining internal compliance registers. Director ID status should now sit alongside ASIC register checks, PPSR reviews and other core governance data points.
Final Thoughts
Director ID compliance may appear administrative, but regulators are now treating failures seriously. With penalties rising and enforcement activity increasing, directors should act promptly to ensure they meet their obligations. The financial and reputational risks of non‑compliance are only growing.
