Embarking on a business venture in Australia brings you face-to-face with the term ABN, or Australian Business Number. This unique identifier is a crucial aspect of setting up and operating a business in Australia.
An ABN is a unique 11-digit number that serves as a public identifier for your business. It's used by businesses to interact with various Australian government agencies and departments. The ABN is essential for accessing government services and support.
One ABN can cover multiple businesses, provided they all operate under the same business structure. If you establish a business under a different structure, you will need a separate ABN.
Details of your ABN registration are part of the Australian Business Register (ABR), maintained by the Australian Taxation Office (ATO) on behalf of the Commonwealth. This register is publicly accessible via the ABN Lookup website.
An ABN is publicly available and is different from your confidential Tax File Number (TFN). It's intended for use in situations where a TFN is not suitable or secure. You will typically need your ABN for:
In most cases, obtaining an ABN is necessary. However, businesses with a GST turnover of less than $75,000 are generally exempt. Despite this, not having an ABN can lead to complications such as an inability to claim GST credits and potential tax withholdings by other businesses during transactions.
Furthermore, to register a business name in Australia, an ABN is required. Without an ABN, you risk losing the right to your business name if another entity registers it.
In summary, an ABN is not just a formality but a fundamental component of legally and effectively running a business in Australia. It streamlines your interactions with government agencies and ensures your rights as a business owner are protected.