Trading Name Changes Affect Suppliers
Council wishes to remind its suppliers about the current changes affecting business trading names that came into effect on 1 November 2023, and the actions required to ensure Council is able to continue to process and pay suppliers' invoices.
Since July 2000, suppliers have been able to register trading names on the Australian Business Register (ABR). This process stopped in 2012 and suppliers were required to register Business Names with ASIC if they wanted to trade under a name other than their legal entity name.
Subsequently, it was announced that trading names would be deleted from the ABR from 2018; that date was then deferred until 31 October 2023. More information can be found on the ABR website.
A supplier's tax invoice is valid if it has the supplier's legal entity name and an ABN.
Currently, however, a tax invoice is also valid if the supplier's legal entity name is not included, but the tax invoice contains a trading name registered on the ABR, or a business name registered with· ASIC. In both of these cases, the trading name or business name can be traced back to ownership by a legal entity with an ABN and GST registration.
It is important to note that when the trading names disappear from the ABR on 31 October 2023, as planned, the connection back to a legal entity with an ABN and GST registration will no longer exist.
What tax invoices will Council not accept?
After the trading names disappear from the ABR, Council will not accept an invoice that only has a trading name without the supplier's legal entity name, even if the tax invoice contains the supplier's ABN.
What tax invoices will Council accept?
After the trading names disappear from the ABR, Council will accept tax invoices that contain the supplier's legal entity name, or a business name registered with ASIC, together with the supplier's ABN.
What should suppliers do?
Suppliers who want to continue doing business with Council under a name other than their legal entity name, need to register that name as a business name with ASIC. The ASIC registration fee is $98 for 3 years, after which the registration needs to be renewed.
If you require any further information in relation to this change, please contact email Council at firstname.lastname@example.org