On 1 November 2022, Treasury opened up public consultation on exposure draft legislation for reforming and strengthening the ABN system. The former Government announced this measure in the 2019-20 Budget.
The measure intends to make ongoing ABN registration contingent on meeting two additional obligations:
– to comply with income tax return lodgement requirements, and
– to update the accuracy of details on the Australian Business Register annually.
The ATO will explore opportunities to provide not-for-profits who have an active ABN and who self-assess as income tax exempt with one co-ordinated single reporting mechanism, that will satisfy obligations for both measures where possible. It is intended that the self-assessing income tax exempt return will collect the information required to satisfy the new ABN requirements, without the need for these entities to provide information separately. The ATO is also exploring opportunities for registered charities to satisfy the new ABN requirements within the existing Annual Information Statement.
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