The ATO should improve its support for tax agents and taxpayers in helping them to include the correct ATO business industry code in the tax return form, such as by:
- enhancing communication regarding the importance of correct industry code selection and the impacts it may have in subsequent ATO compliance activities; and
- assuming the 5-digit Coder is made publicly accessible, seeking external user feedback on the coder’s operation to identify improvements required to make it more effective, including the code structure used for the fifth digit.
We agreed with this recommendation and implementation was completed on 28 August 2014.
Following the release of the Business industry code tool in January 2014, we contacted tax agents about how the tool could assist them to correctly include ANZSIC codes in company income tax returns due in March 2014.
There was further communication to business taxpayers and tax agents about the tool and the benefits of using correct ANZSIC codes during tax time 2014.
The 5th digit in the business industry code is an adjunct to the ANZSIC codes. We have no plans to modify the 5th digit, but we are committed to public consultation if there are any proposals in the future.