The first step is to apply for a MyGovId. What I had not realized was that the MyGovId is not the MyGov service. MyGovId is an identity app on your Android or Apple smart phone, similar to the ones which supply codes for multi factor authentication. The app took a couple of minutes to download from the Android app store (from the Australian Taxation Office).
The app asked for an email address, name and a few other details. Then comes the tricky part: you have to use the app to scan identity documents. You hold you phone over the document, the app takes a photo and turns the data into text. My passport scanned fine, but the anti-counterfeiting features on my driver's licence meant some details did not transcribe correctly. I had to try three times, holding the card at an angle to catch the light right. It is important to have the scanned details match on each document.
Another problem was the phone repeatedly asking for a fingerprint-scan. At some point I was asked if biometrics should be turned on. I said yes, as this is a security app. But then each time the app was about to scan a document it would close and I would have to reopen it, then scan my finger again.
The last step was to take a photo of myself, to be checked against records. The result was not flattering, but acceptable to the algorithm. The MyGovID was then instantly issued.
Now I had a MyGovId, applying for a director ID was quick and simple. The most difficult part was working out that this is not done with the app. Instead you fill in a form on the ABRS website. Also the two factor authentication worked in the reverse way to what I was expecting. To identify myself, I had to transcribe a number from the ABRS web form, to the App on my phone, rather than from the phone to the web. With that done, I entered my personal tax file number, and some other details (less than I was expecting). This did not require scanning any documents, just typing the details in.
A step not required was to say what company I am a director of. All the details I had entered were about me: none about the company.
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Note: some directors don't need to get an ID until the end of November 2022: https://www.abrs.gov.au/director-identification-number/who-needs-apply-and-when
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