You are the Team Leader for the Accounts Receivable & Payable $($ARP$)$ Department for ABC Bookkeeping. It has come to your attention that over the past couple of weeks, the invoices issued by ABC Bookkeeping services did not display the company$$s Australian Business Number $($ABN$).$ The missing ABN from invoices means that ABC Bookkeeping Services is in breach of s$29\mathrm{.}70$ of A New Tax System $($Goods and Services$)$ Act $1999.$

The breach of s$29\mathrm{.}70$ entitles clients to withhold income tax at the highest marginal rate as per the Taxation ruling $2002/9($TR$2002/9).$ The current prevailing marginal rate is $47\%.$

The ARP department has $4$ team members:

$$ You $-$ Team Leader

Responsibilities $$ managing and guiding the team of AR associates, the execution of regular receivables and payables reports and analysis, and determination of the provision for doubtful debts.

$$ Kevin $-$ Receivables, payables, and reconciliation

Responsibilities $$ receiving and entering payments and performing daily reconciliation of the subsidiary ledgers

$$ Alison $-$ Reminders and debt recovery

Responsibilities $$ maintaining the aging debtors report, sending reminders for outstanding accounts and debt recovery

$$ Kate $-$ Invoicing

Responsibilities $$ issuing invoices

$6$ weeks ago, the ARP department migrated their data to a new cloud accounting system.

Kate has been processing and issuing the invoices for ABC since she started work at the beginning of the year. She has basic accounting and IT knowledge.

The non$-$compliant invoices have been going out since the migration to the new accounting software. This has gone unnoticed by Kate. Aside from this issue, she has been doing a very good job of managing the high workload.

Considering the recent reports of non$-$compliant invoices, the Financial Controller has asked you to review and amend the system for Accounts Receivable, in consultation with Kate and the AR team. All recommended changes should align with the Tax Invoice requirements, as outlined in the A NEW TAX SYSTEM $($GOODS AND SERVICES TAX$)$ ACT $1999-$ SECT $29\mathrm{.}70$