What is ABN and Why I need an ABN?
The Australian Business Number (ABN) was introduced on 1 July 2000 to enable businesses in Australia to deal with a range of government departments and agencies using a single identification number.
ABN is useful to start and operate business in Australia for Taxation and others legal purpose. In certain dealing with ATO and other government agency, you need to have ABN. ABN is 11 Digit Number to identify your business. If you don’t, other businesses may withhold 46.5% from any payment to you for tax purposes. When you apply for ABN, same time you can apply for GST, PAYG withholding and TFN. As for example, if you operate a home based business, you may require to register business or company name, taxation and other licenses or permits.
Who can apply for an ABN?
Anyone who wants to start a business in Australia can apply for an ABN. ABN does not replace tax file number. It has many usefulness, including ordering and invoicing purpose, claim GST credits, purchase Australian domain name, facilitate single Business Activity Statement, and avoid PAYG tax on payments you receive.
What will happen, if I don’t have an ABN?
You will not be permitted to register a business name unless you have an ABN or are exempt from holding an ABN. If you do not have an ABN and are not exempt from the requirement to hold an ABN, you will not be able to register a business name and you will not be permitted to trade under a business name.
How much cost?
The Australian Business Register (ABR) does not impose a fee for applying for an ABN online or by paper application. But as a tax agent to complete an application for you we charge fee for service. So, all you pay is tax agent service Fee, there is no government charges.