In the 2024 Federal Budget, the Federal Government announced the discontinuation of this proposed measure, as these integrity issues are being addressed through other administrative processes implemented by the ATO.
Originally announced in the 2018–19 Federal Budget, and draft legislation was released for accountability measures for ABN holders. If it had been effected, ABN holders would have needed to:
- lodge outstanding income tax returns, and
- confirm the accuracy of your entity’s details on the Australian Business Registrar annually.
If the proposed measure had been effected, the regulator would have had the ability to:
- Cancel your ABN if you have 2 or more outstanding income tax returns for income years commencing on or after 1 July 2022.
- Cancel your ABN if you do not confirm the accuracy of your ABN details in an annual form on or after 1 July 2024.
- If your ABN gets cancelled by one of these measures, the regulator must reinstate your ABN once the outstanding items have been resolved.
Currently, there are no registration penalties for ABN holders when it comes to lodging tax returns. That is, you can continue to quote an ABN regardless of whether you have lodged outstanding returns.
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Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.