In this section

The ABR

Purpose

Program overview

Strategic initiatives summary

Performance results - program 1.3

Results analysis - program 1.3

The ABR

The Commissioner of Taxation is also the Registrar of the Australian Business Register (ABR). The Registrar has separate and distinct responsibilities as outlined in section 28 of the A New Tax System (Australian Business Number) Act 1999.

The ABR program encompasses:

• the Register, which is a trusted national business dataset, and business registry services
• Standard Business Reporting (SBR), which defines a common language for business information and standards, for digital information exchange and sharing with businesses and government
• secure authentication options, giving business easy access to a range of services.

Purpose

The purpose of the ABR program is to:

• deliver effective and efficient business registry services that provide trusted and accessible national business data
• encourage trust and confidence in the broader use of national business data – by the community, businesses and government – to promote the development of new and better services for businesses, using the ABN as a key identifier
• reduce the administrative cost to businesses in their dealings with other businesses and government.

Program overview

This overview of ABR program performance aligns with the ATO corporate plan 2018–19, and presents our 2018–19 performance against the three strategic initiatives to deliver the program.

Overview

The ABR program supports a fairer business environment for the community, businesses and government through trusted business registry services and digital standards. We are constantly working to increase the value of ABR data through understanding how it can be better used by businesses, governments and communities to unlock social and economic value for Australia.

This objective had two measures, both of which were fully met.

Strategic initiatives summary

The ABR program commitments for 2018–19 included maintaining trust and confidence in the Register, and maintaining the digital exchange standards – through SBR.

The integrity of Australian business numbers (ABNs) is essential to establishing trust in the Register. This year, we changed the online application process to improve earlier identification of applicants not entitled to an ABN. We also removed almost 680,000 ABNs through our cancellation programs, including around 610,000 ABNs that had not received any business income in previously lodged income tax returns.

We developed a whole-of-government SBR definitions and API catalogue 'working prototype' with the Digital Transformation Agency.

We also commenced work with the New Zealand Ministry of Business Innovation & Employment to implement a standardised approach to e-invoicing, based on the Pan-European Public Procurement On-Line (PEPPOL) interoperability framework, for use within Australia and New Zealand. E-invoicing will enable the direct exchange of invoices between the financial systems of suppliers and buyers, helping to create a seamless Trans-Tasman business environment. It will be available for use by the end of 2019.

In the 2018–19 Budget, we received funding to develop a detailed business case outlining options to modernise business registry services and introduce a Director Identification Number (DIN). The government’s intention is for a modernised business registry service and DINs to be administered by the ATO.

Working with our government partners, including ASIC, we sought input from:

• the public – via roundtable events and a second round of consultation with over 100 participants
• key stakeholder groups on the Modernising Business Registry Program’s Review of registry fees consultation paper, receiving 22 submissions during the consultation period.

Consultation and high level co-design for the DIN has been completed and options for implementation have been provided to government.

In response to Black Economy Taskforce findings, we conducted public consultation on ABN regulatory reform, seeking views on possible changes such as adjusting ABN entitlement rules, imposing conditions on ABN holders, and introducing a renewal process with a renewal fee. Overall interest was very high, with over 180 submissions on the public consultation paper from a diverse range of stakeholders. There was broad support to address ABN misuse and make ABN holders more accountable for meeting their government obligations, while minimising the regulatory impact on businesses doing the right thing.

In the 2019 Budget, the government announced measures to strengthen the ABN system to disrupt black economy behaviour. ABN holders will be required to meet obligations to lodge their income tax return from 2021 and review their ABN details annually from 2022. These changes will also continue to improve the overall quality of the information on the ABR.

Performance results - program 1.3

Our two performance criteria are set out on page 197 of the Australian Taxation Office Budget Statements (in the Treasury PBS), and pages 19 and 24 of the ATO corporate plan 2018–19.

A Target achieved S Target substantially achieved N Target not achieved X Result not available

Results analysis - program 1.3

Increased use of the ABR as the national business dataset

Consumption of ABR data by government agencies and the community continues to increase through a variety of channels, including ABR Explorer, ABR Connect, Data Transfer Facility and ABN Lookup. In 2018–19, the number of agencies using ABR Explorer increased by 18% to 368, while the number using ABR Connect web services increased from 11 to 17, both exceeding their target. ABN Lookup downloads exceeded 1.4 billion, a 40% increase from the previous year and exceeding target.

We supported the increased use of ABR data by continuing to develop products that promote self-service, and education materials to facilitate interactions with ABR Explorer. System enhancements also improved the quality of data queries for agencies.

The second generation of ABR Connect web services (ABR Agency Connect) is currently in a Beta version with three participating agencies. Two agencies have completed testing and have transitioned the service into their production environments, while the third agency plans to release the service later in 2019. We are also working with Digital Communication and Identity Services (DCIS) to incorporate a whole-of-government authentication solution for the service. Our ABR Connect web services lower costs for government agencies by reducing the need for multiple databases or registers that duplicate information.

Reduction in the administrative cost to businesses and government in dealing with each other

In 2018–19, there was a slight decrease ($38 million) in the reduction of administrative costs, compared with the previous year. This brought the total annual reduction, relative to the costs of businesses using lodgment methods via previous systems, to almost $1.6 billion, which met the performance target. The small decline is primarily due to a refinement of the methodology compared with previous years, together with the higher-than-expected result in 2017–18.

The result indicates that savings to business and government from ABR program initiatives continue to deliver in reducing the reporting burden, minimising cost to business and enhancing business interactions through natural-based systems for the business community.

As new initiatives such as e-invoicing and STP are implemented, savings are expected to increase further for both business and government.