Item 2 - Description of main business activity
A description of the main business activity and an ANZSIC Code are mandatory for all Company returns. The description will default from the ANZSIC Code Index at label B. This description is modifiable if required.
For a Consolidated or MEC group, choose the business activity from which the Group derived the largest amount of gross income.
Industry code
Select from the list at label B the code whose description most accurately describes the business activity from which the company derived the most gross income, e.g. beef cattle breeder, vegetable grower, clothing manufacturer, confectionery wholesaler, electrical goods retailer. Do not use general descriptions such as farmer, manufacturer or wholesaler.
For a consolidated or MEC group, show the business activity from which the group derived the greatest amount of gross income.
If the company has applied for an ABN, its industry code appears on the ABN notification of registration. If the company has not applied for an ABN or has not received notification of its ABN, select the appropriate business code for the company from the index of codes at this label.
If the company has changed its main business activity since receiving its ABN notification of registration the company's industry code number is no longer valid. Describe and code the business activity as accurately as possible.
For a consolidated or MEC group show the industry code for the business activity from which the group derived the greatest amount of gross income.
An incorrect code may result in clients not receiving a necessary service or material from the ATO, or could lead to incorrect targeting of audits. In addition, the ATO provides the Australian Bureau of Statistics (ABS) with aggregated client records for the preparation of national accounts and related economic surveys. Industry codes are an important part of the information the ATO gives to the ABS.
Percentage of foreign shareholding
Examine the top 10 shareholders of the company at the end of the income year. From these top 10 shareholders, identify the foreign shareholders and aggregate their percentage of shareholding held in the company. Show this percentage in whole numbers at label A. If this aggregate percentage is less than 10%, disregard this label.
For this purpose, a foreign shareholder includes (but is not limited to) a shareholder:
Whose address in the share register is shown as being outside Australia.
Who has directed that their dividends be paid in a place outside Australia.
Who is entitled to dividends from a foreign dividend account (FDA).
Who is not a company incorporated in Australia.
That is a company that does not have an Australian Company Number.