What Is an ABN?
An Australian Business Number is an 11-digit number that identifies your business to other businesses and consumers in the marketplace. It also identifies you to the Australian Tax Office (ATO) and enables the tracking of your business activities.
Do you need an ABN?
It is not compulsory for businesses to register for an ABN, however getting an ABN makes running your business easier if you have to register for other taxes like GST and verify your business as legitimate to other traders and customers.
Why Apply for One?
If you use an ABN in connection with your business activities from the beginning, you are able to easily track income and expenses. This can save a lot of accounting headaches or reduces the cost of hiring an accountant down the track. It also allows you to:
Legitimately confirm your business identity to others
Avoid business clients withholding PAY tax on payments (47% of payment)
Claim back Goods and Services (GST) credits
Access government support and concessions for businesses
Acquire a ‘.com.au’, ‘.net.au’ or ‘.org.au’ domain name
Having an ABN is often a requirement if you are looking to work as a contractor for other businesses.
How Do I Apply for an ABN?
Lawpath can assist with our fast ABN registration service which allows you to complete your application in less than 5 minutes.
You may want to register a Business Name too- read more here: When to Register a Business Name