The key difference is the type of businesses each identification number is used for. An ABN applies to all business types, whereas ACN is only used for companies.
Australian Business Number (ABN)
Your ABN is a unique 11-digit number that identifies your business in Australia. It allows the Australian Taxation Office to keep track of your business activity and taxes and acts as an identifier for other businesses you may work with.
If you run a business and do not have an ABN, you may be charged 47% tax rate.
If your business earns over $75,000 per year, you legally must register for an ABN.
Lawpath can assist with our fast ABN registration service which allows you to complete your application in less than 5 minutes.
Australian Company Number (ACN)
An ACN is a 9-digit number issued by ASIC when you successfully register a company. It serves as an identifier for monitoring company activities and showcases the business's structure. ACN should be cited in all important business correspondence.
Most companies will have both an ABN & ACN number.
Finally
Having the right identifiers is crucial for your business. Not having them puts you at risk of breaking company and tax laws. Remember, all registered businesses need an ABN, but only companies require an ACN.
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