Legislation introduced in the House of Representatives on February 13th, has the aim of modernising business data and introducing Director Identification Numbers (DINs).
Currently, data is stored in various systems across different departments and agencies. As a result, registrants bare the inefficiency of a cost burden when meeting their obligations. This in turn, makes it difficult and time-consuming to find information.
At the moment, the administration of business registers is found in the Australian Business Register (ABR) and 31 separate data holdings of the Australian Securities and Investments Commission (ASIC). The Morrison Government proposes to modernise this by moving the data to a modern registry platform that will be administered by the ABR within the Australian Taxation Office (ATO).
Along with this platform, the legislation allows for the appointment of a Registrar(s) who will have the flexibility to adapt and respond to changes in technology to improve the user experience and simplify the way people interact with government registers. The Registrar can reduce red tape for businesses by lowering their reporting obligations. This will reduce the time and stress involved.
The new legislation also introduces a legal framework for Director Identification Numbers (DINs), a unique identifier that a director will keep permanently. This will provide a traceability of the director’s profile and relationships across companies and greater insight to regulators, businesses and individuals on the identity and affiliations of directors.
“The introduction of DINs to Australia will help combat phoenix activity and phoenix related activity. It’s a fantastic initiative and we hope to see it introduced as quickly as possible,” comments CreditorWatch CEO, Patrick Coghlan.
The legislation will take effect once relevant documents and instruments are issued, including the appointment of a Registrar.