You may have heard about the program known as Modernising Business Registers (MBR) that was originally announced in 2019 by the Australian Government.
If you have had to use the Australian Business Register (ABR) or Australian Securities and Investments Commission (ASIC) portal, you will have found them to be very outdated and difficult to navigate. The proposed MBR Program aims to unify the ABR and ASIC registers into one modern platform that will be maintained by the Australian Taxation Office (ATO). Benefits of this program are:
- One locations for directors and business owners to meet all of its obligations, which allows you to spend more time focusing on the business and your clients;
- Information and updates will be distributed from one source;
- The efficiency of services provided by the support team will be improved.
A sub-initiative of the MBR Program is the introduction of unique Directors Identification Number (DIN) for each company director. The Australian Government has proposed the initiative to prevent the creation of fictitious directors and avoid illegal phoenix activity, whereby a new company is created to continue the operations of a company that has deliberately been liquidated to avoid paying debts.
The initial difficulties that may be faced by the Government in the implementation of DIN is that director information is known to currently be inconsistent across the various platforms, where first names have been shortened, middle names are missing, places of birth differ, residential addresses are incorrect and so on. Although there has not been a release date announced for the MBR Program and DIN initiative, our office is preparing its clients for a smooth transition by requesting a copy of their Australian Driver’s License or Passport we will use to ensure personal details are accurate across ATO, ASIC and ABR, for all related companies.
If you would like further details, please review the source material below, or contact our office.
Your trusted team at Archangel Wealth