Currently, every company registered in Australia with the Australian Securities and Investment Commission (ASIC) under the Corporations Act receives a unique Australian Company Number (ACN) upon incorporation. Many companies also register on the Australian Business Register (ABR) and receive and separate Australian Business Number (ABN) and business Tax File Number (TFN).

In the 2015-2016 Budget, the Australian Government announced that it is considering streamlining the current business registration process as part of the ‘Growing Jobs and Small Business’ initiative. This initiative aims to encourage start-ups and entrepreneurship, ultimately fuelling greater investment and jobs.

Proposed Changes

From 1 July 2016, the Federal Government proposes to combine the procedures for registering as a Company with ASIC and the ABR. The Government plans to develop a single online registration website for business and company registration so that new companies can satisfy all registration requirements in a single transaction.

As part of the proposed measures, the Government intends to reduce the number of unique business identifiers received by companies upon registration. Rather than receiving an ACN and potentially, an ABN and a TFN, as part of the company registration process, new companies will be issued with a single numerical identifier, an ABN. Companies will no longer have ACNs or TFNs. They will instead be able to use their ABN to interact with both the Australian Tax Office and ASIC.

What about Existing Companies?

The proposed amendments will not affect companies registered before 1 July 2016. These companies will retain all of their current numerical identifiers and can continue using their ACNs. Furthermore, they will not be required to apply for an ABN if they do not already have one.

Conclusion

At this stage, the proposals are simply that: proposals. If, however, the Government does implement these amendments, they will greatly assist companies who are newly starting out.

Should you like any more information or have any questions about the proposed amendments, please get in touch! Or, if you require assistance registering or structuring your business, pre or post the changes to the business registration process, one of LegalVision’s business structuring specialists would be delighted to assist.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer