Most small business owners who trade through a company became a director by ticking a box at registration. Few were ever told what the role legally involves. On 10 September the Minister for Small Business, Dr Anne Aly, put the spotlight on a free resource designed to fix that: ASIC's Small Business Director Essentials hub.

"Small business owners are busy enough without having to spend hours trying to work out what their obligations are," the Minister said.

What is in the hub

According to ASIC, the hub brings guidance, tools and learning into one place, organised around the life of a company: planning and setting up, operating, restructuring and closing. It includes:

  • practical guidance matched to each stage of the business
  • free online learning modules
  • a director roadmap covering obligations from setup to closure
  • resources for key moments, such as becoming a director, meeting ongoing obligations and responding to financial difficulty.

It forms part of ASIC's refreshed Small Business Strategy, which is built around four themes: educate, simplify, engage and collaborate, and protect and enforce. That last theme includes action on illegal phoenix activity.

Why ASIC built it

ASIC surveyed 400 small business directors before building the hub. The barriers they reported will sound familiar:

  • 49 per cent cited time and resource constraints
  • 49 per cent pointed to regulatory complexity
  • 44 per cent said professional advice costs were high
  • about one third did not understand the consequences of breaching their duties.

The survey also found 87 per cent of directors turn to their accountant for compliance guidance.

Two other director items to note

Director IDs will be reported to ASIC from 1 July 2027. New laws will require companies to give ASIC their directors' ID numbers through normal company reporting, including annual reviews and changes to director details. ASIC is encouraging companies to prepare now by checking that every director has a director ID and that names and addresses on the company register are current.

Be careful when closing a company. In its September newsletter ASIC reminded directors that applying for voluntary deregistration means declaring the company has no outstanding liabilities. Tax debts, unpaid employee entitlements and creditor claims are the common problems, and a false declaration is a criminal offence.

What to do

  • Set aside an hour to work through the hub, especially if you are a newer director or a spouse who was added as a director for convenience.
  • Check that your ASIC company details are up to date, and that every director can find their director ID.
  • If the business is under financial pressure, read the financial difficulty material early. Directors have more options when they act before debts pile up.

This is general information only. If you are unsure about your duties or your company's position, speak with your accountant or a lawyer.