ABN is a legal requirement for you if you are running a business or planning to start a new business in Australia. It is a unique 11 digit number that serves as the identification of the business and used in all commercial transactions. ABN is an acronym that stands for Australian Business Number that allows Australian Taxation Office to identify and easily deal with any businesses operating in the country.
It can be confusing for the authorities to identify a business because of similar names. ABN is an identification tool that solves the problems of business owners and the authorities for the purpose of taxation and transactions with other businesses and clients. Registering your business with the authorities is a simple and quick process. It is also free of cost. In this guide, you will learn about the importance and usefulness of ABN and also the process for registering your business with the authorities.
Why do you need an ABN?
It is very difficult for anyone to carry out his business in Australia without having this unique identification number. You will be asked for this identification number when you place orders with other businesses. It is also necessary when sending invoices to your clients. You will need ABN whenever you want credit for GST or wish to apply for a grant from any government agency. You cannot set up your business website or even get a domain name without having an ABN.
You can apply for ABN for your business by visiting the official website of Australian Business Register. This website can also be used to register the name of your business. Once you provide all the details and information about your business such as owner’s name, address, and GST registration, and contact details, work on your application for ABN begins. The process of registration is faster if the authorities can easily identify your business on the basis of details you have provided. You can apply for ABN even before you have received your GST number.
The important thing to remember here is that you need to file your income tax returns annually once you get ABN for your business. This is necessary whether you are making a profit or registering losses from your business. Filing of income tax returns is essential even if you fall below the income tax free threshold.
Not every individual needs to get an ABN. It is necessary only for those individuals who are running a business in Australia. To know whether your venture qualifies as a business and whether you are entitled for ABN or not, you need visit to the official website of Australian Business Register.
ABNs are for life. It is a proof that you are running your business and filing your annual income tax returns. If there are any changes in your business details, it is your responsibility to update the authorities about the same. It is only when you decide to wind-up your business that you must apply for the cancellation of your ABN number.