ASIC’s enforcement of director ID obligations has shifted markedly over the past two years, with penalties now approaching the statutory maximum and courts signalling a tougher stance on non‑compliance.
The first prosecution occurred in 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. Although the matter was ultimately withdrawn, it marked the beginning of active enforcement.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.
What This Means for Directors
These cases demonstrate a clear evolution in ASIC’s enforcement posture: from early test matters to consistent, increasingly firm action. Courts are now treating non‑compliance as a genuine governance failure, particularly where directors hold multiple appointments or operate in higher‑risk industries.
The director ID requirement is not new. It forms part of the Federal Government’s anti‑phoenixing reforms and aims to improve transparency of corporate structures. Lack of awareness is not a defence.
What Directors Should Do Now
In light of increasing enforcement, directors should take proactive steps to ensure compliance:
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
New directors must apply within the required timeframe. Delays, even accidental ones, can result in breaches.
5. Embed Governance Processes
Businesses should incorporate director ID checks into onboarding and governance frameworks, including maintaining internal compliance registers.
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.
