Australian Business Number (ABN)
The Australian Business Number (ABN) is a single identifier used for all dealings with the Taxation Office and other business entities and agencies.
Do I need an ABN?
Businesses need an ABN and GST registration to claim GST credits for any GST you have paid on goods/services you have used in your business. Where your business invoices for goods or services you will need to quote your ABN so that other businesses do not withhold tax at the highest marginal rate.
An ABN is necessary to interact with the ATO on GST, the Diesel and Alternative Fuels Grants Scheme, Luxury Car Tax and Wine Equalisation Tax. Also businesses that need to apply to the Tax Office for endorsement as gift deductible recipients or income tax exempt charities will need an ABN. You can also use an ABN to interact with the Australian Tax Office on the PAYG system and Fringe Benefits Tax.
To be entitled to an ABN, you must be:
- A company registered under Corporations Law in Australia and business entities carrying on an enterprise in Australia.
- A non-profit organisation with a turnover of $150,000+ (for GST purposes)
- A superannuation fund
Certain entities (sole traders, companies, partnerships, trusts and superannuation funds) can apply for an ABN on line
FURTHER INFORMATION:- Refer to the ATO website ABN Essentials
|IMPORTANT DISCLAIMER: This article is published as a guide to clients and for their private information. This article does not constitute advice. Clients should not act solely on the basis of the material contained in this article. Items herein are general comments only and do not convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.|