Australian Business Number (ABN) and Do I Need One
An ABN (Australian Business Number) is a unique 11-digit identifier issued by the Australian Taxation Office (ATO) to businesses and organizations. It is used for tax and business-related purposes, such as dealing with the ATO, registering for GST (Goods and Services Tax), and interacting with other businesses. Having an ABN helps to streamline business operations and ensure compliance with Australian tax laws.
It is required if you want to operate a business or be involved in certain activities like working as an independent contractor, Online influencer or content creator, taxi or rideshare driver etc in Australia.
Though ABN is used for various tax and other business purposes, it is neither an alternative for and nor does it replace the tax file number. Both TFN and ABN can be applied at the same time.
An ABN is used in general for
- Confirming a business identity to others when doing business communication and transactions
- Claiming Goods and Services Tax (GST) credits
- Claiming energy grants credits and/or other government benefits
- Obtaining an Australian domain name
- Getting a myGovID to transact online with government agencies
- To book a website domain name that ends in .au
- Avoiding Pay as You Go (PAYG) tax on receipts
ABN is linked to a business entity and not to a business, and a business that applies for an ABN can operate as many enterprises as they like from the one ABN. For Example, a business can choose to operate a furniture shop, a separate curtain outlet and an online fabric supply outlet. But if any of these operations are run by a different business entity, that entity requires a separate ABN.
How to apply
Not everyone is entitled to an ABN. You may face prosecution or criminal charges if you apply for an ABN, register for GST and claim GST refunds when you’re not entitled.
There are three ways to apply for an ABN
- Through the Australian Business Register portal
- Using the services of a Registered Tax Agent, or
- A paper-based application via the ATO
Applying for an ABN is free, however there may be a professional fees associated when applying through a registered tax agent.
How long does it take to get an ABN?
Applicants providing all the required information when applying online will receive an online notification of the ABN immediately after submitting the application.
In cases where the identity cannot be confirmed or if any other documentation/details are needed, the ABR will review the application within 20 business days and may contact representative of the business if they need more information.
Australian Business Register
The Australian Business Register (ABR) is a comprehensive database that contains information about businesses and organizations registered in Australia. It is managed by the Australian Taxation Office (ATO) and provides a unique identifier known as the Australian Business Number (ABN) to each registered entity.
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