When thinking of starting business or organisation it is important to consider the requirements upon establishing such. One of these is registering your business for an Australian Business Number.
An Australian Business Number (ABN) is a unique 11 digit number, issued by the Australian Business Register (ABR), which identifies your business or organisation and makes interaction easier between businesses and all levels of government (Australian Taxation Office, 2015).
[ctt template=”9″ link=”wzmpT” via=”no” ]The ABN is a unique 11 digit number, issued by the ABR, which identifies your business or organisation.[/ctt]
How can I be entitled to ABN?
In order to be entitled to get an ABN: you must be able to demonstrate that your business structure is in place, you must also be carrying on an enterprise in Australia, in the course of carrying on an enterprise connected with Australia or have undertaken sufficient activities to commence an enterprise (Australian Business Register, 2015).
Registering for an ABN enables you to operate in the GST system, including claiming GST credits, avoid Pay as You Go (PAYG) tax on payments you receive, confirm your business identity to others when ordering and invoicing, get an AUS key to transact online with government agencies and be endorsed as a gift deductible recipient or an income tax exempt charity (Australian Taxation Office, 2015).
What are benefits of having ABN?
The benefits for having an ABN is that it helps government to guide service delivery, plan and manage infrastructure and provide disaster recovery for you and your community (Australian Business Register, 2015).
If you enter into business with another person an you do not have an ABN then the other party is obligated to deduct 46.5% of the invoice and remit it to the ATO directly.
To register go to https://abr.gov.au/For-Business,-Super-funds—Charities/Applying-for-an-ABN/Apply-for-an-ABN/
For a step-by-step guide on how to register your ABN correctly, click here to get access to a free course.