If you're venturing into the business world in Australia, understanding the distinction between an ABN (Australian Business Number) and an ACN (Australian Company Number) is fundamental.
The ABN is a unique 11-digit identifier issued to all business entities, including sole traders, partnerships, and companies, by the Australian Taxation Office (ATO). It's a mandatory requirement for all businesses operating in Australia. You'll need an ABN to file Australian tax returns, open a business bank account, and it's essential for invoices and official paperwork. It's also used when applying for an Australian business license.
Registering for an ABN involves enrolling your business on the Australian Business Register. Once registered, your ABN remains valid throughout the life of your business unless canceled or deemed inactive by the ATO.
The ACN is a 9-digit number issued exclusively to companies by the Australian Securities & Investments Commission (ASIC). Unlike the ABN, the ACN is specific to companies and is a critical part of a company’s identification. A company in Australia is a specific type of business structure, legally separate from its owners (shareholders) and managed by directors.
Registration of a company and obtaining an ACN is legally required under the Financial Transaction Reports Act 1988 if you operate in Australia. Once you acquire your ACN, it should be displayed on business cards and invoice footers.
A TFN is a unique 10-digit number provided by the Australian Taxation Office to identify taxpayers. It's crucial for various purposes, including employment, applying for government benefits, setting up a business, banking, and filing tax returns. It's also necessary for paying employee wages and contributing to the ATO.
If you've misplaced your ABN, you can retrieve it using the Australian Government's ABN Lookup website. For your ACN, ASIC Connect, managed by the Australian Securities and Investment Commission, will have your details.