The accuracy of the content is not guaranteed. Please rely only on the authorised document. With more than 2,745,000 ABNs issued from 2,847,000 applications received, Tax Commissioner Michael Carmody today acknowledged the efforts of business and Tax Office staff in delivering the new Australian Business Register (ABR). "Last November I committed my office to delivering for Australia a new business register of great integrity - we have," Mr Carmody said. "I am confident that everyone who applied for an ABN before 31 May and supplied sufficient detail of their identity and business activity will have their number by Saturday. We currently have 1,250 staff working on applications where vital detail is missing or illegible. My staff are resolving and express posting around 20,000 ABN notifications each day and expect to clear any backlog. "I also made a commitment that we would do everything we can to ensure businesses that applied after 31 May have their ABN by the start of the new tax system - we are. We have already turned around the bulk of the 370,161 ABN applications received so far in June. "Today I am announcing 'safety net' arrangements to further assist businesses that have lodged their ABN application late or with problems that have not yet been resolved and who may not receive their ABN by 1 July. "Safety net letters being issued to these businesses this week give them authority to operate under the new tax system as if they had received their ABN. They may, in fact, receive their ABN notification at the same time as the letter, but either way they will be covered," Mr Carmody said. The letters mean that, in the event that the applicant makes supplies to another business, tax will not be required to be withheld under the new Pay As You Go arrangements. For this purpose, the rate of withholding has been reduced to nil from 48.5 per cent, the highest marginal rate. The variation covers the period from 1 July to 31 July 2000 inclusive, but will lapse as soon as the business is notified of their ABN. To take advantage of the nil rate, applicants must provide copies of the declaration provided with the letter to all business purchasers of their goods and services. If they have applied and qualify to be registered for GST, they must include GST in any taxable supply they make and include the words 'ABN pending', along with other required information, on their tax invoices. Eligible applicants will be able to claim input tax credits and embedded sales tax credits as if they had received their ABN by 1 July. People lodging ABN applications with all essential details now can expect to receive their ABN within a maximum of 7 days if they lodge electronically or 14 days for paper applications. "I am extending one further safety net offer to people who have failed to apply for an ABN before 1 July and are then confronted with a business situation where they need an ABN faster than our standard turnaround times allow," Mr Carmody said. "If they contact us and provide proof of their identity we will issue them with a safety net letter overnight that applies for 14 days on the condition that they forward a full ABN application within this time. "Only people who take genuine steps towards registering for the new tax system will be covered with these safety net arrangements. People who fail to lodge an application face the consequences of not having an ABN. "We will review the safety net arrangements at the end of July," Mr Carmody said. CANBERRA
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