The Australian Business Number (ABN) is an identifier used by the Australian Taxation Office (ATO) and other government agencies in certain dealings.
Eligibility for an ABN
Unlike a Tax File Number (TFN), not all taxpayers are entitled to obtain an ABN. Section 8 of the A New Tax System (Australian Business Number) Act 1999 prescribes that to qualify for an ABN you must:
- be carrying on an enterprise in Australia;
- make supplies that are connected with an indirect tax zone in the course of, or furtherance of, an enterprise;
- be an Australian corporation;
- have undertaken sufficient activities to commence an enterprise; or
- be able to demonstrate that your business structure is in place.
Getting it right
Although applying for an ABN itself on your own may be pretty straightforward, there are many other factors to consider when starting a business. Ask yourself the following questions – if you’re not sure about your answers, you should seek advice from an Accountant, Business Advisor and Taxation Advisor.
- Are your operating under the most optimal business structure for your business?
- Should you also registered to collect Goods & Services Tax (GST)?
- Should you register for PAYG Withholding?
- Are there any other statutory registrations required for your business?
- Do you need to register a business name?
- Have you made adequate provisions to protect any Intellectual Property associated with your new business?
- Have you considered the short-term and long-term future tax implications of your new business?
Much cheaper over the long-run
Many people are tempted to DIY to save a few dollars when starting a new business, but in practice we often see costly mistakes down the track that could have been avoided by the business proprietor seeking advice before starting the new business.
We can help
Simply complete our simple new business registration online questionnaire and we can ensure that your ABN application is processed correctly.