Every Thing You Should Know about ABN Number in Australia

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Australian Business Number (ABN) is an 11-digit unique number. ABN Number in Australia launched on 1 July 2000 by the liberal government of John Howard's.

It is an identity of the business to deal with many government departments, agencies and the community of Australia.

The ABN number is obtained when starting a business in Australia. However, this number does not replace the tax file number.

 


Why do you need an ABN?

 

Firstly, it is recognized as illegal to trade in australia without an ABN.

Therefore, if any business without an ABN enters a transaction, then the payment should be subtracted by 47% and afterwards deposited with the Australian tax office (ATO).

 

Uses of ABN Number

 

  • Avoid paying taxes as you travel (PAYG) in accepting payments
  • Recognizing the business to others while placing orders
  • Invoicing
  • Claiming GST credits
  • Obtaining an australian domain name

 

Registration of ABN Number in Australia

 

You can apply for an ABN by different platforms, for instance:

Above all, a tax file number (TFN) is a must before applying for an australian business number (ABN)

No fee is charged to apply for an ABN online, although if you take help from a registered tax agent so they may charge a fee for their services.

 

ABN application status

 

The application for ABN is processed faster if you have a tax file number. Most importantly the information is successfully verified.

  • As soon as the application is successful, you will instantly get the 11-digit ABN. Moreover, now you can save your ABN details and proceed with further business registration such as GST (ABN and GST number are not the same). Although, you can ask not to reveal particular data due to privacy concerns.
  • Meanwhile, if you receive a reference number instead of ABN it means more information is needed. Therefore, it may take up to 20 business days for the officials to contact you for the information needed. After that when the reviewed information is checked, you receive a letter with your ABN details within 14 days. Additionally, you can also check ABN lookup to know the status of your application anytime.
  • Similarly, if the application is not successful, you receive a refusal number. Secondly, a letter confirming your application refusal with the reasons and alternative available for you. However, you can always reapply for the ABN.

 

Entitlement of an ABN

 

A resident may qualify for ABN if:

 

  • Starting a business in australia
  • Manufacturing goods related to Australia's indirect tax range
  • Owning corporation’s act organization

 

Non-resident may qualify to ABN if

 

  • Starting a business in australia
  • Manufacturing goods related to Australia's indirect tax range

 

12 things you need to apply for an ABN Number

 

  • Tax file number
  • Tax agent number (if you are using one)
  • Number of a professional advisor (if you use a professional advisor, you can grant his / her AFS license)
  • Previous ABN (if any)
  • The ACN stands for “Australian Company Number” and ARBN stands for “Australian Registered Business Number”. You can appeal for ACN or ARBN by the australian investment and investment commission (ASIC)
  • Date by which you require ABN (this should be the day when you expect to start your business no more than 6 months of application)
  • Official business name
  • Approved contacts
  • Associated data
  • Business contact information (including address, email address, postal address and telephone number)
  • Source of income for the enterprise
  • Business physical locations

 

Difference between ABN and ACN:

 

ABN stands for Australian Business Number & ACN stands for Australian Company Number.

ABN and ACN are two different identity numbers with different purpose.

In other words, every australian business needs an ABN however only businesses registered as a company needs an ACN.

In conclusion, the company's ABN will always contain its two-digit ACN.

 

ABN cancellation

 

ABN cancels if your business:

 

  • Is sold
  • Closed down
  • Is no longer operating in australia

Most importantly before cancelling your ABN, firstly ensure to complete any lodgements, reporting and payments with any government agencies you have been dealing with.

Secondly, if you want to cancel your pay as you go censorship, you should cancel it before you cancel your ABN.

 

How to cancel your ABN

 

You can cancel your ABN online using your mygovid login.

Your mygovid associates with your ABN using relationship authorization manager (ram). All changes you make online to your ABN takes effect immediately.

If you're unable to cancel your ABN using the link above, you can lodge a form by mail.

 

Cancelling an ABN further cancels:

 

  • Registrations for GST, LCT, WET and FTC.
  • All authorized linking among your mygovid and your ABN.

 

Important facts of ABN

 

  • If your business structure changes, cancel your ABN and apply for a new one.
  • You must renew data within 28 days of becoming aware of any changes to your ABN details.
  • Most importantly if you are an individual trader expecting an annual income of more than $75k then you must apply for an ABN number in Australia.

Also read about how to register a new business in India.


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