ATO will be looking at ways to cleanup the ABN register

Applying for ABN made tougher.

[modula id=”1430″] Over the past few years everyone and their dog has got a ABN, leading to a bloated ABN register which is hard to manage and police. Unlike in the past, now it is not easy to get a ABN, many applications get rejected.

  • They review ABN applications to ensure only genuine businesses get, and keep, an ABN.
  • For each false or misleading statement made in ABN application, a penalty of up to $12,600 may be applied.
  • They validate your application information with other agencies like center-link, Immigration etc.,
  • Will your activities be carried out in Australia?
  • Have you started or are you taking steps to start your activity?
  • What is the nature of your activity?
  • Are you doing things that are consistent with running a business?

The ATO looks at these points to make a decision on the application

Caution required even after getting the ABN.

  • Once you have an ABN, you must update it within 28 days of any change and cancel it if you are no longer trading or carrying on an enterprise. They may penalize in the future for delays like they do for ASIC.
  • Over the coming months ATO is increasing focus on the bulk Australian business number cancellation, to continue to ensure the integrity of the Australian Business Register. Some of the points they look at are…
    • You stopped reporting business income in BAS or ITR.
    • Provide no indication of running a business.
    • Are employed under the guise of a contractor.

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