The effects of the 2013 federal budget on new businesses
The Australian Government pledged $7.8 million to support the national online business name registration system. In an effort to recoup the money, the Australian Securities and Investments Commission will slightly raise the price for both the one and three year business name registration. $1.3 million dollars of the money earned from the price increase will be used by ASIC to improve the registration system and to expand the support services of the call centre for the benefit of new business owners.
According to Start up Smart, the government has also made a promise to lessen compliance costs for new start-ups. The department of Finance and Deregulation and the ATO will receive $80 million from the government to re-examine the Australian Business Number system and to regulate the business name registration process.
By reforming the business registration system and putting in place more strict regulation at the ABN registration stage of business start up, the federal government hopes to generate a revenue of $106.4 million. According to legal experts, small businesses can expect a higher level of enquiry when registering their business, such as providing more documentation. Non- compliant businesses or start-ups which provided wrong or misleading information at the beginning phase of setup will be penalised. Making a false or misleading claim on an ABN application may cost the applicant $10,200 in penalties.
With the increased government funding the ATO will be much quicker at picking up and tracking down inaccuracies and false details on documentation.