You may have heard about the new business tax system and wondered what if anything you should be doing about it.

The Government has taken into account the criticism it has received for requiring a lot of complicated paperwork from people in business and has moved to find a way to make this easier for everyone.

The solution they have come up with is the Business Activity Statement that will be used from 1 July 2000, and can be lodged over the internet by persons who have registered for an Australian Business Number.

It was hoped that the system would enable any person in business, anywhere in Australia, to go to the internet and press a few buttons and enter a few pieces of information once every three months. Doing this once every 3 months would be enough to fulfil all of all their responsibilities to all the Government departments to which they are required to give information. For example, the fisherman in Tasmania who is required to report to a whole lot of government agencies (Commonwealth, State and local) should in time be able to report to just one internet address and find there a file with all the questions he has to answer in one form.

The Goods and Services Tax (GST) was the main reason the Government finally got round to setting up this system and that had to be up and running by 1/7/2000, so some of the other government departments have been left behind, but will be added over time.

From November 1999, you can register and receive a Business Number. The Government has decided to use the internet as the main collection and dissemination point for this exercise, however if you are not yet comfortable with this you can use paper forms or get your accountant - tax agent to do it for you.

Once you have an Australian Business Number, you have a key to using the new system.