However, there are bound to be situations where ABNs are cancelled but the taxpayer still needs it. If so, clients can apply to have the ABN reinstated, in which case the same ABN should be provided if the business structure has not changed.
BUDGET 2019-2020
ABN STATUS STRIPPED FOR NON-COMPLIANCE. DATE OF EFFECT 1 JULY 2021 AND 1 JULY 2022.
From 1 July 2021, Australian Business Number (ABN) holders will be stripped of their ABNs if they fail to lodge their income tax return. In addition, from 1 July 2022, ABN holders will be required to annually confirm the accuracy of their details on the Australian Business Register.
Currently, ABN holders are able to retain their ABN regardless of whether they are meeting their income tax return lodgement obligations or the obligation to update their ABN details.
INCLUDING ANNUAL LEAVE LOADING AS ‘ORDINARY TIMES EARNINGS’ FOR SG
As part of a broader focus on ensuring employers comply with their superannuation guarantee (SG) obligations the ATO notes that there have been some issues in determining whether annual leave loading amounts should be included as ordinary times earnings (OTE) and thus subject to SG.
The ATO view on this issue was outlined in SGR 2009/2, and generally the position depends on the reason the annual leave loading was payable. The ATO has announced that due to the issues in this area (largely arising from the fact that most awards don’t provide a reason for the entitlement to annual leave loading), it will be applying a concessional compliance approach.
Broadly, for previous quarters the ATO will not apply compliance resources where:
- the employer self-assessed that the annual leave loading was not OTE, with the reasonable position that the annual leave loading was for a notional loss of opportunity to work overtime;
- there is no evidence that is less than five years old (the statutory period employers are expected to keep records relating to their SG affairs) that suggests the entitlement was for something other than overtime.
For future quarters however the ATO will be expecting that there is some form of written evidence to support the position that annual leave loading was payable for a notional loss of opportunity to work overtime. This might be found in the relevant award, or alternatively may be outlined in a policy of the employer.
If employers do not have this written evidence, they will need to attempt to obtain it as soon as practicable, or the ATO will assess their future SG obligations on the basis that the annual leave loading falls within OTE.