Australian Business Register YEAR IN REVIEW 2007–08

07–08

CONTACT OFFICER

Marketing Manager, Australian Business Register year in review 2007–08 report

Marketing Communications Australian Business Register PO Box 9977 Brisbane QLD 4001

Phone: 1300 139 025 Fax: (02) 6250 0021 Email: abrenquiries@ato.gov.au Website: www.abr.gov.au

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You can email your comments to abrenquiries@ato.gov.au

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For copies of this document phone 1300 139 025 or email abrenquiries@ato.gov.au

© COMMONWEALTH OF AUSTRALIA 2009

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca

PUBLISHED BY

Australian Taxation Office Canberra March 2009

NAT 72721-03.2009 JS 13051

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Our missionnTo promote the competitiveness of Australian

business by reducing compliance costs and making interactions with government easier for them.

nTo provide a unique business identity number that can assist stakeholders in their dealings with Australian businesses.

Our business intentTo streamline government and business interactions by positioning:n the Australian Business Register as the authoritative

source of business identity informationn the Australian Business Number (ABN) as a

unique identifier.

Our roleTo achieve our business intent, we:npromote the Australian Business Register as a

whole-of-government resourcendevelop and maintain the register as the authoritative

source of business identity informationn facilitate interactions between government and

businesses registered with an ABNnprovide ABR information to eligible

government agenciesnprovide the community with convenient access to

publicly available details such as the ABN and GST status of businesses with which they are dealing.

In maintaining the register, we:n register ABN applicationsnensure that records are current and accurate ncancel the registrations of entities that are

no longer active.

Our valuesOur values are:nbeing fair and professionalnbeing consultative, collaborative and willing

to co-designnbeing open and accountablenbeing responsive to challenges and opportunities.

Australian Business Register at a glance

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Our service to the communityIn addition to progressing our five key strategies, we strived to meet community expectations in relation to service level standards. On average, each week our service to the community included:n issuing approximately 11,400 new ABNsnmaking approximately 82,000 updates to the ABR.

We also supported the Department of Innovation, Industry, Science and Research with their ABN Lookup website. On average, there were approximately 1.57 million searches on ABN Lookup each week.

Highlights

Our goal is to progress the Australian Business Register (ABR) as a whole-of-government resource for streamlining business to government interactions. The Australian Business Number (ABN) acts as the unique identifier enabling these interactions. In order to achieve this goal, we focus on five key strategies.

Key achievements against the five strategies in 2007–08 were:

1 Refining our existing services

nWe introduced an online data download service for government agencies

nWe enhanced the ABR system to make it easier for businesses to transact online

nWe developed a model for the future design of the ABR in collaboration with key partner agencies

2 Progressing new services that support whole‑of‑government projects

nWe collaborated on a proposal designed to enable businesses to register for a business name and an ABN in a single seamless transaction

3 Increasing agency awareness and engagement

nWe provided 84 agencies with access to ABR data throughout the year

nWe entered into partnerships with six new agencies during the year

4 Improving our governance and reporting processes

nWe increased ABR-specific reporting available to the government and the public, allowing them to better understand how we have performed as custodians of the register

5 Improving the integrity of ABR data

nWe introduced an online ABN eligibility tool that enables registrants to check if they are entitled to an ABN before applying

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Open and accountable administration

The Australian Business Register year in review is a report on our performance. This new corporate document has been developed for the Australian Business Register to demonstrate our commitment to establishing reporting, governance and administrative arrangements which are separate and distinct from those used by the Commissioner of Taxation.

As an open and accountable administration, we have published this report to assure partner agencies, government users of the ABR and the community that we are effective and efficient administrators of the register.

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Australian Business Register at a glance i

Highlights ii

Open and accountable administration iii

PART 1 OVERVIEW

Provides a message from the Registrar, an overview of our organisational structure and the services we provide to business and government.

1.1 Message from the Registrar 2

1.2 The Australian Business Register 3

PART 2 REPORT ON PERFORMANCE

Reports on our performance in providing services to business and government describing in detail what activities we undertook.

2.1 Service to business: our performance 8

2.2 Service to government: our performance 11

PART 3 MANAGEMENT AND ACCOUNTABILITY

Explains our planned approach to corporate governance and reporting and our activities focussed on ensuring the integrity of ABR data.

3.1 Establishing new governance and reporting arrangements 18

3.2 Providing a trusted source of information 18

Contents

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1.1 MESSAgE FROM THE REgISTRAR

It is my pleasure to present the first performance report of the Australian Business Register (ABR) – Australian Business Register year in review, covering the financial year 1 July 2007 to 30 June 2008.

As Registrar of the ABR, I have responsibilities which are separate and distinct from those that I have as Commissioner of Taxation.

I have provided key information on our performance managing the ABR in the Commissioner of Taxation Annual Report 2007–08.

I have made this stand-alone report available for the purpose of providing greater detail on how we performed as custodians of the ABR in 2007–08.

This report provides information on how we undertake important aspects of our work, what our key achievements were in 2007–08 and our future plans for:n refining our existing servicesnprogressing new services that support

whole-of-government projectsn increasing agency awareness and engagementn improving our governance and reporting processesn improving the integrity of ABR data.

In 2006–07, I initiated a review to better position the role of the ABR in supporting whole-of-government activities and to make the work we do more transparent and independent of the work of the Tax Office. This report details what we have been doing in response to the findings of our review.

It also shows that our key challenge for the coming year will be, with a limited budget, to fulfil community expectations, meet service level standards and reposition the ABR to meet the growing needs of government.

Despite these challenges, we remain committed to making the ABR the government’s business register and a tool for cutting red tape for business. I trust our commitment will engender confidence in our custodianship of the register and increase use and reliance on the ABN and the ABR across all sectors of the community.

01 Overview

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1.2 THE AUSTRALIAN BUSINESS REgISTER

The Australian Business Register is a database of business identity information which allows businesses to register for an Australian Business Number (ABN) and update their details online.

The ABR also allows members of the community to confirm various details such as the ABN and GST status of businesses they are dealing with.

Information collected during the ABN registration process is made available to eligible Australian, state and local government agencies in accordance with the law.

For business, this means better service and less red tape. The ABN acts as an identifier which businesses can use with government agencies at all levels. When businesses update their ABN details on the ABR, these changes are made available to government agencies that are accessing ABR data.

The ABR was established following enactment of the A New Tax System (Australian Business Number) Act 1999.

Though the ABN Act is administered by the Tax Office with the Commissioner of Taxation occupying the formal position of Registrar of the ABR, the ABR is maintained as a separate database from other Tax Office systems.

The adoption of the ABR by other government agencies is central to achieving the objectives of the Act.

Better service with less red tapeWe aim to ensure the ABR provides quick and easy government to business interaction – better service with less red tape.

This year, we made significant progress in identifying new and better ways to assist simplified government and business interaction. We focussed our efforts on:1providing services that make it easier for business

to interact with government2progressing the ABR as a valuable,

whole-of-government resource3ensuring ABR data can be relied on as a trusted

source of information.

The extent to which the ABR can simplify government and business interaction depends on the support and participation of other government agencies and the business community.

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Our organisational structureThe Registrar of the ABR, Michael D’Ascenzo, is responsible for administering the Australian Business Register and Australian Business Numbers (ABNs). This responsibility includes:n registering new ABN applicationsnmaintaining register integrity by ensuring records are

current and accuratenproviding the community with access to public data

to assist them to verify core business identity and tax registration information – for example, whether an entity is registered for GST

nproviding eligible government agencies with access to details of registered ABN holders.

The Registrar collaborates with key agencies to ensure the ABR is positioned to support their requirements and achieve its intended outcomes.

The Registrar is also the Commissioner of Taxation. These roles bear separate and distinct responsibilities.

As at 30 June 2008, the ABR executive also consisted of the Deputy Registrar, Geoff Robinson, and the Assistant Registrar, Paul Southwell.

The Deputy Registrar:n leverages relationships with government agencies

through various consultative forums to promote sharing of data and to ensure the ABR continues to be a valuable whole-of-government resource

n is also a Deputy Commissioner of Taxation (a role separate and distinct from that of the Deputy Registrar).

The Assistant Registrar:n takes a leading role in the development of plans

to progress the ABR as the business register for government

nmanages the workforce to ensure efficient and cost-effective service to government and the community.

From top: Michael D’Ascenzo, Geoff Robinson and Paul Southwell

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Making it easier for business and governmentThe ABR is helping to cut red tape for business by allowing them to interact online with government. To support provision of information and services to the community, we have two key websites:1ABR website www.abr.gov.au2ABN Lookup www.business.gov.au

The ABR website at www.abr.gov.au enables people to apply for an ABN and update their business details online. It also allows businesses to simultaneously apply for tax related registrations.

The ABN Lookup website at www.business.gov.au is maintained by the Department of Innovation, Industry, Science and Research on behalf of the Registrar. ABN Lookup allows the community to access publicly available information about businesses and other ABN-registered entities.

Figure 1 on page 6 describes the online services available to the public.

Whole‑of‑government resourceData contained in the ABR can be accessed by Australian, state and local government agencies. When businesses update their details on the ABR, these changes are available to government agencies that are accessing ABR data in accordance with the law. Figure 2 on page 6 describes this interaction.

ABR data available to government agenciesData within the ABR is split into two distinct subsets. 1Public data – freely available to Australian, state and

local government agencies and members of the public.2Non-public data – available to those agencies that

have a business use and legal right to the information as specified by the A New Tax System (Australian Business Number) Act 1999.

Our partnering programAn ABR partner is an agency which has signed a memorandum of understanding (MOU) with the Registrar of the ABR for access to data from the register.

Access to ABR data can make it easier for agencies to achieve their business goals. Australian, state and local government agencies can use ABR data for a range of purposes including:nsimplifying their interactions with their clientsnconfirming the information they receive from clients

is correctnvalidating their own data for compliance purposesn targeting business for registration, research and

analysis purposes.

Becoming an ABR partnerWhen an agency contacts an ABR partnership manager, they discuss how the agency can make best use of the register and confirm the agency’s eligibility to receive ABR data.

Once the agency’s eligibility is confirmed, they can either sign a:nsimplified MOU to access public data via

ABN Lookup, ornMOU and service level agreement to receive public

and non-public data. The agreement details service standards for the supply and protection of the data.

Data delivery serviceGovernment agencies with a current memorandum of understanding can access ABR data from one or more of the following services:n internet download from ABN Lookup (public data only)ndata extract discs or internet download from the ABR

(public and non-public data).

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FIgURE 2: Whole‑of‑government interaction

Business to government Government to government

Support from other agencies nAustralian Securities & Investments Commission confirms company legal names and registration

nAustralian Bureau of Statistics (ABS) measures the accuracy of industry coding data held in the ABR

ABN transactions ASIC

ABS

ABN application

ABN Lookup Data delivery optionsAgencies can access data via a mix of:nABR extract discs: public and

non-public data (available quarterly)nABN Lookup: public data via

internet (available hourly)nABR agency services: public

and non-public data via internet (available weekly)

ABR database

ABR data extract disc

ABN Lookup

ABR agency servicesPUBLIC

Government transactions

Agency systems

Agencies can use ABR data to:nverify information received from

clientsnprovide pre-fillable online formsn identify clients for research,

education and compliance purposes

Company registration

Customs duties

Occupational licences

FIgURE 1: ABR online services available to the public

ABN transactions

ABRn Apply for an ABN and tax roles

(eg. GST and pay as you go withholding)n Update business details online

ABN Lookup

n Verify publicly available information (eg. business name, ABN and GST status)

n Search for single or multiple recordsn Links to Australian Securities & Investments Commission

(ASIC) company register and Superfund Lookup

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The year aheadIn 2008–09, we intend to refine our services to the business community and government agencies and position the ABR to lead the way in streamlined government-to-business interactions in the future. At the same time, we will be constrained by the need to meet community expectations regarding our service level standards and by available resources and system capabilities. To mitigate some of these risks, we will work with our partners and capitalise on opportunities provided by the soon-to-be-established ABR Advisory Board to develop new strategies and priorities. With this in mind, we will, overtime, be looking at building on the progress we have made to date against our five key strategies.

1 Refining our existing servicesWe will:norganise access to the ABR online data download

service for interested agencies and seek their feedback on possible enhancements to this service

n implement a simplified encryption method that will make ABR data extract discs easier to use

n roll-out further system enhancements to the ABR website making it easier for businesses to transact online and improve the quality of data flowing into the register

ncontinue working on a design model that supports delivery of new ABR services in line with the requirements of the Government and the Council of Australian Governments.

2 Progressing new services that support whole‑of‑government projectsWe will:ncontinue to collaborate with a range of government

agencies on new services that support initiatives in the future, including standard business reporting and ABN and business name integration

ncontinue to work with government agencies to further embed the ABN as the identifier that businesses use when interacting with government.

3 Increasing agency awareness and engagementWe will:n introduce a simplified memorandum of understanding

process which will allow agencies to access ABR data and services more quickly

n implement a communication strategy focussing on recruiting new agencies and helping current partners gain greater benefit from ABR data.

4 Improving our governance and reporting processesWe will:nestablish a new ABR Advisory Board to oversee and

advise on the operation of the ABR and progress it as a whole-of-government resource

nestablish consultative forums in each state and territory, allowing partner agencies to learn more about how they can improve their use of ABR data and to identify and discuss possible improvements to the register.

5 Improving the integrity of ABR dataWe will:n integrate an online eligibility tool into the ABN

application process, allowing registrants to check if they are entitled to an ABN before applying

nexplore how we can improve our validation process to ensure more accurate business address data at the point of registration.

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2.1 SERVICE TO BUSINESS: OUR PERFORMANCE

In 2007–08, to progress services that help business interact online with government, we: ncollaborated with partner agencies on a review of the

strategic vision and technical design of the registern launched, in collaboration with other agencies,

the Superfund Lookup servicenparticipated in a project designed to allow businesses

to register for a business name and an ABN in a single transaction

nprogressed the ABN as the identifier that businesses use when interacting with government agencies, for example, dealings with the Australian Prudential and Regulatory Authority (APRA)

n investigated new services and improvements to enhance the business community’s interactions with the ABR, for example, improved system navigation

nensured the ABR website and ABN Lookup were accessible to the public.

Reviewing the strategic vision and technical designA core project which we began in 2006–07 considered how we could position the ABR to meet the future needs of government and the community. It takes into account other cross-agency projects which are looking at reducing red tape and improving services to business.

We conducted interviews with government agencies at all levels in an effort to better understand how our existing partners use the ABR and the ABN, and also how agencies would like to use these in the future. We documented these findings and will use them as a basis for decisions we make in relation to future changes to the ABR.

ABR services we will look to improve include:nonline access to data and servicesnour business processes and productsnsecurity and authenticationnbusiness user interactions and process design.

Superfund LookupThe ABR launched a Superfund Lookup service in conjunction with the Department of Innovation, Industry, Science and Research (DIISR) and APRA in July 2007.

This online tool provides a quick and easy way to check the contact details and complying status of superannuation funds. It provides the community with more up-to-date information, improved search capabilities and replaces the Register of Complying Super Funds.

In 2007–08, there was an average of 27,687 Superfund Lookup searches a month.

ABN and business name registrationThis project is designed to allow members of the community to register a business name and obtain an ABN in a single transaction. We collaborated with DIISR and other key agencies to progress the integration of ABN and state-administered business name registration processes.

This work is ongoing and will be reported to the Council of Australian Governments throughout 2008–09.

Progressing the ABN as the unique identifierIn 2007–08, we worked with the Treasury and APRA to progress the ABN as the unique business identifier for government.

From September 2008, all superannuation funds and superannuation fund trustees that want to be registered by APRA need to have an ABN. A separate identifier will no longer be used.

APRA-registered funds and trustees will need to display their ABN on certain documents they use when dealing with the public. This is a significant change that moves the ABN closer to its intended goal of being the unique identifier for business.

We will continue to work with other agencies to explore opportunities for the ABN to replace other government identifiers.

Helping members of the communityThis year, we implemented a number of enhancements to the ABR’s online functionality to improve the user’s experience. These enhancements focussed on improving useability of the service and will increase the proportion of ABNs issued to clients immediately.

We would like to make further enhancements to the transactional services offered by the ABR. These enhancements would make it easier to use the ABR and increase understanding of the obligations associated with establishing and running a business. A priority could be to focus on entitlement to an ABN for sole traders.

02 Report on performance

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Making the register accessible to the publicWe continued to provide members of the community with updated ABR information via the ABN Lookup website. In 2007–08, monthly ABN Lookup searches peaked at 11,134,386. On average, there were 6,819,356 searches a month to verify details of businesses. This is a 9.0% increase from the previous year and shows the community’s growing reliance on ABR data.

Table 1 shows the steady growth in popularity of the ABN Lookup facility.

ABN statisticsThere were 597,444 new ABNs issued in 2007–08, representing a 6.0% decrease when compared to the number of ABNs issued in 2006–07.

Reducing the number of ineligible registrants was a key focus in 2007–08. In January 2008, we introduced a web-based ABN entitlement tool that provides businesses with greater certainty of their entitlement to an ABN.

Records maintainedThe number of active ABNs on the Australian Business Register increased 5.0% in 2007–08. The total active ABN population is 6,087,516 in 2007–08, compared to 5,775,749 in the previous year. The growth of the active ABN population has slowed compared to the 7.0% increase in 2006–07.

We cancelled 177,321 ABNs from the register for those individuals, companies and superannuation funds that were no longer eligible to hold an ABN. This reduces the potential for misrepresentation and misquotation of ABNs within the community. This workload is in addition to the 91,719 cancellations initiated by businesses.

Table 2 shows key ABN registration and maintenance statistics.

We measure how we perform in the delivery of ABN registrations through the use of service standards. Table 3 shows how we performed against the service standard we set for ABN processing.

TABLE 1: Making the register accessible to the public

Measure Performance

2004–05 2005–06 2006–07 2007–08

Average monthly searches on ABN Lookup 2,595,938 4,176,734 6,259,149 6,819,356

TABLE 3: Our performance against service standards 2007–08

Service standard Standard 2007–08

Benchmark Achieved Volume

% %

Australian Business Number

Processed 28 days 93.0 97.1 597,444

TABLE 2: Our service to business: key statistics

Measure Performance

Australian Business Number 2006–07 2007–08 %

Issued 634,553 597,444 –6.0

Active ABNs 5,775,749 6,087,516 5.0

Cancelled (Registrar-initiated) 113,812 177, 321 56.0

Cancelled (client-initiated) 52,058 91,719 76.0

Updates to the register 3,467,496 4,275,095 23.2

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Registration trends 2007–08There was growth in the register for all entity types in 2007–08. However, the growth for all entity types (with the exception of government entities) was less than the growth recorded in 2006–07.

Table 4 and Figure 3 provide a breakdown of changes to the total ABN population (active and cancelled) by entity type over 2007–08.

TABLE 4: Total ABN population by entity type 2007–08: key statistics

Entity type Volume at the end of 2007–08 Growth rate 2007–08

%

Sole traders 3,622,109 5.5

Companies 1,699,978 3.3

Partnerships 1,003,449 2.6

Trusts 804,733 10.3

Superannuation funds 432,286 8.6

Government 15,396 2.3

ABN registration channels 2007–08Businesses can apply for an ABN:nonlinen through a tax agent, who can lodge the application

via the electronic lodgment servicenon a paper application.

Figure 4 provides a breakdown of ABN applications by channel in 2007–08.

In 2007–08, approximately 91.6% of ABN applications were lodged online compared to 89.7% in 2006–07. Approximately, 5.3% of ABN applications were lodged via the electronic lodgement service compared to 6.8% in 2006–07. Approximately, 3.1% of ABN applications were lodged on paper compared to 3.5% in 2006–07. These figures demonstrate the community’s continuing shift towards web-based transactions.

FIgURE 3: ABN population by entity type 2007–08

Government 15,396

Super funds 432,286

Trusts 804,733

Sole traders 3,622,109

Companies 1,699,978

Partnerships 1,003,449

FIgURE 4: ABN applications by channel

Paper 3.1%

Electronic Lodgment Service 5.3%

Online 91.6%

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TABLE 5: ABR partner lifecycle as at 30 June 2008

Recruitment phase Service phase Renewal phase

n7 new partnerships were in negotiation n80 agencies had access to ABR data via one or more delivery methods including:– 30 agencies accessing public data from

ABN Lookup– 4 agencies using the ABR data

download service– 52 agencies accessing the ABR data

extract disc service.

n7 existing partnerships were being renewedn14 partnerships had been renewed

To ensure government agencies are kept informed of the latest ABR developments and can contribute to advancing the whole-of-government intent of the register, we introduced a quarterly newsletter and are progressing new consultative arrangements.

On 30 June 2008, the ABR had partnerships with 80 government agencies1, providing them with information in accordance with the law. Table 6 on page 12 shows the list of ABR partner agencies as at 30 June 2008.

New partnershipsIn 2007–08, we established new partnerships which allow access to ABR data to:nProductivity Commission (Federal)nHurstville City Council (New South Wales)nDepartment of Justice (Northern Territory)nCairns Regional Council (Queensland)nQueensland Building Services AuthoritynDepartment of Innovation, Industry and Regional

Development (Victoria)

Feedback from our partner agenciesIn 2007–08, we conducted an extensive service review process with our partner agencies. Our partners requested that we:n improve our address data holdings, thereby,

significantly increasing the benefits ABR data provides government

n tell them more about how they can maximise the value they receive from ABR data

nprovide more information regarding our performance as administrators of the register.

We also learned that awareness of ABN Lookup web services was low, resulting in missed opportunities for red tape reduction by government agencies.

1 This figure has been updated since the release of the Commissioner of Taxation Annual Report 2007–08.

2.2 SERVICE TO gOVERNMENT: OUR PERFORMANCE

Although there has been strong take up of the ABN by the business community, we are seeking greater adoption of the ABN and the ABR by government agencies to progress the whole-of-government intent of the register. This view was supported by the Australian National Audit Office in their Audit report No.15 2007–08 which made some recommendations on how we could progress the ABR as the government’s business register. Consistent with these recommendations, we focussed on: noffering agencies access to a new, online data

download servicenmaking the ABR more accessible to agenciesnenhancing our reporting and governance arrangements

so we can clearly delineate the performance of the Registrar from that of the Commissioner of Taxation

ncollaborating with other agencies to progress the whole-of-government intent of the register.

Making the ABR more accessible to governmentTo increase take-up of the ABR and the ABN by government agencies, we expanded our partnership management team. This team supports our existing and potential partner agencies and enables us to broaden our consultative processes.

We have simplified our partnering processes by working more closely with agencies to define their requirements for ABR data and their eligibility for access. This has made it easier and quicker for government agencies to access ABR data and services.

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TABLE 6: ABR partner agencies as at 30 June 2008

JURISDICTIoN AND AGENCY NAME Public data access Non‑public data access

Federal

Australian Bureau of Statistics X X

Australian Securities and Investments Commission X X

Australian Taxation Office X X

Australian Trade Commission (AUSTRADE) X X

Centrelink X X

Department of Education, Employment and Workplace Relations X X

Department of the Environment, Water, Heritage and the Arts X

Department of Families, Housing, Community Services and Indigenous Affairs

X

Department of Finance and Deregulation X

Department of Infrastructure, Transport, Regional Development and Local Government

X

Department of Innovation, Industry, Science and Research (‘ABN Lookup‘ and AUSINDUSTRY)

X X

Productivity Commission X X

STATE oR TERRIToRY

Australian Capital Territory

Chief Minister’s Department (ACT Workcover) X X

Cleaning Industry and Long Service Leave Board X X

Construction Industry and Long Service Leave Board X X

Planning and Land Authority X X

Registrar-General’s Office X X

Revenue Office X X

New South Wales

Building and Construction Industry Long Service Payments Corporation X X

Department of Commerce (Government Licensing System) X

Department of Commerce (Office of Industrial Relations) X X

Independent Pricing and Regulatory Tribunal of NSW X X

Office of State Revenue X X

Sydney Harbour Foreshore Authority X

WorkCover NSW X X

Worker’s Compensation Dust Diseases Board X X

Northern Territory

Department of Business, Economic and Regional Development X X

Department of Justice X X

Territory Revenue Management X X

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TABLE 6: ABR partner agencies as at 30 June 2008 continued

Public data access Non‑public data access

STATE oR TERRIToRY continued

Queensland

Department of Education, Training and the Arts X X

Department of Employment and Industrial Relations X X

Office of State Revenue X X

Queensland Building and Construction Industry (Portable Long Service Leave) Authority – QLeave

X

Queensland Building Services Authority X X

Queensland Contract Cleaning Industry (Portable Long Service Leave) Authority – QLeave

X

Queensland Police Service X X

Queensland Rural Adjustment Authority X X

Queensland Transport X X

Queensland Treasury X X

Queensland University of Technology X

WorkCover Queensland X X

South Australia

Construction Industry and Long Service Leave Board X X

Department of Trade and Economic Development X X

Local Government Association of South Australia X

Office of Recreation and Sport X

Revenue SA X X

WorkCover Corporation of South Australia X

Tasmania

Department of Primary Industries, Water and Environment X X

Tasmanian State Revenue Office X X

Victoria

Department of Innovation, Industry and Regional Development X X

Department of Planning and Community Development X

Essential Services Commission X X

State Revenue Office X X

Western Australia

Construction Industry Long Service Leave Payments Board X X

Department of Consumer and Employment Protection X X

Department of Industry and Resources X X

Department of Treasury and Finance (Government procurement) X X

Department of Water X X

Small Business Development Corporation X X

State Revenue Office X X

Wheatbelt Development Commission X X

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TABLE 6: ABR partner agencies as at 30 June 2008 continued

Public data access Non‑public data access

LoCAL GoVERNMENT

New South Wales

Baulkham Hills Shire Council X X

Clarence Valley Council X X

Hurstville City Council X X

Kogarah Council X X

Liverpool Plains Shire Council X X

Parramatta City Council X X

Penrith City Council X X

Sutherland Shire Council X X

Queensland

Cairns Regional Council X X

Caloundra City Council X X

Council of the City of Gold Coast X X

Maroochy Shire Council X X

Noosa Council X X

Victoria

Whitehorse City Council X X

Western Australia

Belmont City Council X X

City of Gosnells X X

City of Subiaco X X

City of Stirling X

City of Swan X X

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Case study 1: Queensland Department of Education, Training and the Arts

Benefit: reducing time needed to validate data

Data validation, reduced from 35 days to less than 24 hours, is a big step improvement that the Department of Education, Training and the Arts (DETA) made with the help of ABR data.

To speed up the business processes used to manage training arrangements in Queensland, DETA needed to get reliable data from a single source. The ABR filled this gap by becoming their source of accurate information.

DETA match their records against details provided by the ABR and when there are no discrepancies, they lock their records down.

When employer information provided in training contracts matches DETA’s records, the training contract can be registered on the same day.

Another issue for DETA had been establishing a process that would allow them to identify legal entities when communicating electronically with partner business systems. With the cooperation of ABR staff, they explored the best way to use ABR data and were able to resolve this issue.

Registration of training contracts triggers a range of state and federal incentive payments.

By using ABR data in their registration process, DETA can now register training contracts and send data to state and federal agencies within 24 hours.

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Case study 2: New South Wales Office of Industrial Relations

Benefit: identifying clients of interest

Inspectors from the New South Wales Office of Industrial Relations (OIR) have an extensive program of workplace visits which they conduct across the state every year.

The aim of the program is to assist employers to understand their responsibilities under industrial relations laws and these visits also offer the opportunity for employers to ask questions to ensure they are meeting their obligations to their staff.

OIR inspectors use ABR information in planning their visits.

Richard McDonough-Glenn, Manager of Information and Research at the Office of Industrial Relations, said his agency identifies specific types of businesses within an area by combining ABR industry information, based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) codes, with business addresses and postcodes.

‘For example, we recently obtained a list of all businesses in Pitt Street, Sydney – Australia’s second-longest street,’ Richard said.

‘This was helpful as it was the first time that we could accurately identify businesses to this degree.’

‘Now our inspectors can request an up-to-date list of businesses in a region, suburb or even a street, which means that they can plan their programs more effectively’ Richard said.

OIR is also using the GST registration date to identify new businesses for field inspections. Businesses registering for GST are more likely to be active and if the turnover is greater than $75,000, they are more likely to be employing staff.

‘Our ABR interface gives us the ability to generate system reports on specific businesses and areas of interest, giving us more time to prepare for inspections,’ Richard said.

‘Staff confidence is also much higher knowing that their information comes from an authoritative source.’

The state agency is now considering using the ABR’s online service, which provides faster and more efficient access to information.

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Case study 3: offices of state revenue

Benefit: offering online registration services that are easier and quicker

Businesses in Western Australia and Victoria are getting better service with less red tape through the online registration services these states offer.

Ray O’Donoghue, from the Western Australian Office of State Revenue, said his agency’s revenue online (ROL) initiative allows businesses to automatically fill registration forms with ABR data and receive up-to-date revenue information.

‘Our ROL website integrates public data obtained from ABN Lookup into our online registration processes for payroll tax, duties and insurance,’ Ray said.

Businesses simply enter their ABN on the registration form and select the ABN Lookup button and the ROL interface automatically completes their legal name, trading name and Australian company number.

‘Our new service saves our clients time by speeding up the registration process and moves the Australian Business Number (ABN) closer to being their single identifier for interacting with government,’ Ray said.

‘For our agency, it ensures we receive valid and correct ABNs and provides an easy and unobtrusive way to gather these for future data-matching activities.’

Ingrid Mathias, from the Victorian State Revenue Office, said her agency introduced a similar online payroll tax registration service in June this year.

‘We have made it compulsory for businesses to provide their ABN when registering for payroll tax,’ Ingrid said.

‘When clients enter their ABN on their registration form, their legal name and trading name are automatically pre-filled using ABR data.’

‘Because data is automatically validated against ABN Lookup before being submitted to our agency, our staff spend less time confirming whether details are correct.’

This new service has received a positive response from businesses registering for payroll tax (about 350 registrations per month).

Other state revenue offices are also looking at introducing pre-fillable online forms.

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3.1 ESTABLISHINg NEW REPORTINg AND gOVERNANCE ARRANgEMENTS

In 2007–08, the Australian National Audit Office (ANAO) recommended that the ABR establish reporting, governance and administrative arrangements which are separate and distinct from those used by the Commissioner of Taxation. This was to enable a clearer understanding of how well we have performed as custodians of the register.

We progressed a number of changes that will deliver this outcome. These include:n internal and external reportingndevelopment of an ABR business plannstructural realignmentnconsultative arrangements.

We tested proposed changes to external governance, reporting and structural arrangements. These proposed changes have been received positively by key partner agencies.

3.2 PROVIDINg A TRUSTED SOURCE OF INFORMATION

In 2007–08, the ANAO reported upon the performance of the ABR. They acknowledged the ABR has performed well in implementing a number of recommendations from a previous audit, including those in relation to data integrity and quality assurance.

To further increase use and reliance upon ABR data and build upon the register’s reputation as a trusted source of information, we continued our data integrity program. A focus of our program has been on identifying and cleansing the register of clients who are not entitled to an ABN.

Key data integrity activities included:nan online self-help toolnABN post-registration reviewsnRegistrar-initiated cancellationsna range of data quality assurance processesnan annual survey of ABN holders.

Online self‑help toolWe introduced an online ABN eligibility tool in January 2008. This allows registrants to check if they are entitled to an ABN before applying. This tool can be accessed via the ABR and Tax Office websites.

The eligibility tool was accessed an average of 16,883 times per month in 2007–08.

We are assessing the tool’s contribution to reducing ineligible ABN registrations with a view to integrating it into the online ABN application process. This will minimise the possibility of invalid data being entered into the ABR.

ABN post‑registration reviewsOur ABN post-registration review program involved contacting a sample of 785 newly-registered businesses to confirm their entitlement to an ABN. We are using information gathered through this program to enhance the online ABN eligibility tool and improve our registration processes.

Registrar‑initiated cancellationsWe continued to build upon our 2006–07 investment in the Registrar-initiated cancellation program. This involved identifying select ABN holders and contacting them by mail to confirm their entitlement to an ABN. To date, we have focussed on individuals, deregistered companies and superannuation funds that have ceased to operate. In 2007–08, we cancelled 177,321 ABNs. This is on top of the 91,719 cancellations initiated by clients in 2007–08.

Quality assurance programRobust quality assurance processes continue to be a key element in our strategy to support the ABR as a trusted source of information. Our quality assurance processes use sampling techniques consistent with Australian standards to test the flow of new data entering the ABR. In 2007–08, we:nconsistently met quality levels for ABN registrationsncontinued to progressively improve results for industry

coding to the stage where they now meet acceptable quality levels.

As a significant user of industry coding information, the Australian Bureau of Statistics is assisting us to measure the quality of this data on an ongoing basis.

03 Management and accountability

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The quality of data on the register, when measured as fit for purpose, declined slightly in relation to four key indicators: entity legal names, business trading names, postal addresses and business addresses.

Approximately 6.2% of surveys were returned unclaimed. This represents a 0.8% increase in return unclaimed mail when compared to the previous year. Approximately 94.0% of the return unclaimed mail belonged to non-employing entities. Generally, these businesses do not have a tax role (for example, not registered for GST) and therefore have limited interactions with the Tax Office and less opportunity to keep their details up-to-date.

The survey questioned ‘main business activity’ (for example, house building) rather than industry coding (for example, construction of residential and commercial buildings). The ‘strict’ accuracy of main business activity data is consistent with previous surveys.

Figure 5 shows the accuracy of key data attributes from 2005 to 2008.

Annual survey of ABN holdersWe conducted our annual survey of ABN holders in March 2008 with positive results. The survey measured the register’s accuracy in relation to legal and trading names and business and postal addresses. The survey also measured the accuracy of main business activity descriptions, email addresses and details of parties associated with the entities.

Statistics provided for data attributes 1–4 in Table 7 show fit-for-purpose accuracy, that is, where the details printed on the survey contain only minor errors including misspelling, omissions, inclusions or formatting anomalies.

Statistics provided for data attributes 5–7 show strict accuracy, that is, where the ABN holder has indicated that no change is required to the data on the survey form and it also meets our keying standards.

Overall, there was little change in the results of the 2007–08 survey when compared to the previous year. Through refinement of our methodology, we could more precisely measure the accuracy of public officer and trustee names in 2007–08.

TABLE 7: Annual survey of ABN holders 2007–08: key statistics

Data attribute Accuracy 2007–08 Difference in accuracy compared to 2006–07

% %

1 Entity legal name 97.9 –0.6

2 Business trading name(s) 88.3 –1.2

3 Postal address 89.6 –0.1

4 Business address 76.1 –0.8

5 Email address 63.2 –10.1

6 Public officer or trustee 76.6 –18.0

7 Main business activity 90.1 1.5

FIgURE 5: Annual survey of ABN holders 2005–08: key statistics

%

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Entity legal name

Business trading name

Postal address

Business address

Email address

Public officer or trustee

Main industry description

2008

2007

2006

2005