An ABN does not replace a TFN and will not cover all your dealings with the ATO - you will still need to quote your TFN when lodging your income tax returns.
The combined fee for a paper file TFN and ABN is $130. Taxback.com can organise both for you.
If you've got any questions that aren't answered here, or you'd like to talk to someone about your refund now, Chat Live online with our staff visa instant messenger.
The Australian Business Number (ABN) is a unique 11 digit identifier for all business dealings with the tax office and for dealings with other government departments and agencies.
What is an ACN or ARBN?
Australia Company Number's (ACNs) and Australian Registered Body Number's (ARBNs) are 9 digit numbers issued by Australian Securities & Investments Commission (ASIC).
An ACN is issued to an entity when it registers as a company under corporations law.
An ARBN is issued to an entity when it registers with ASIC other than as a company, for example, foreign companies and registrable Australian bodies.
Is an ABN the same as a TFN?
An ABN is not the same as a Tax File Number (TFN).
The TFN is your personal number for dealings with the ATO.
An ABN, whilst 'attached' to your TFN on ATO systems, is a public number used in business dealings.
I am an individual; can I obtain an ABN?
You are entitled to an ABN if all of the following statements are true.
form of a regular or continuous grant of a lease, licence or interest in property.
Your activity is carried out in Australia or you make supplies that are connected with Australia.
You have a reasonable expectation that a profit will be made from your activity.
You are not entitled to an ABN if any of the following statements are true.
Your activity is carried out as an employee or in connection with earning payment as a company director, office holder or under a labour hire arrangement. An employee is a person who receives a salary or wage in return for work or services rendered.
You are not considered an employee for ABN registration purposes if you have your own business and you receive a salary or wage from an activity related to your business.
Your activity is a private recreational pursuit or hobby.
Your activity is conducted as a member of a local government body, for example, as an elected member of a city, town or shire council.
are in a position to make a profit or loss.
In many cases, the income you receive for your work may be classified as personal services income (PSI). PSI is income that is mainly a reward for personal efforts or skills and is generally paid either to you as a contractor or to a personal services entity (a company, partnership or trust). In any one contract, if the majority (more than 50 per cent) of the income you derive from delivering services comes from the use of your skills, knowledge, expertise or efforts, rather than the materials supplied and/or tools and equipment you use to complete the job, then the income for the contract will be classified as PSI.
I want to obtain an ABN for an entity - what are the requirements?
To qualify for an ABN you must meet one of the criterion in each of the below lists.
a religious institution in Australia.
Its activity is carried out in Australia or it makes supplies that are connected with Australia.
Its activity is not a private recreational pursuit or hobby.
There is a reasonable expectation of a profit being made (only for partnerships where all or most of the partners are individuals).
Can I obtain an ABN without having a Tax File Number (TFN)?
If you represent an entity, you can apply for an ABN without having an entity TFN, however you will need to provide the entity's public officer TFN and all entity associates TFN’s and addresses. You can apply for an entity TFN along with your entity's ABN application.
If you are an individual, you can apply for an ABN without having a TFN; however this will slow down the processing of your application.
You will also have to provide certified identification documents. If you have a TFN, there is no need of identification documents, because you have already provided identification when you applied for your TFN.
Can I obtain a TFN along with my ABN registration?
If you are an individual you cannot obtain a TFN along with your ABN. You will need to file a separate TFN application. Applying for an ABN without having a TFN may slow down the processing of your application. We recommend you obtain your TFN before your ABN.
If you represent an entity, you can apply for entity TFN along with your ABN registration. Along with your ABN you can also register about GST and PAYG Withholding.
In Australia, goods and services tax (GST) is charged on the supply of most goods, services and other things - for example, supplies of rights or the sale of certain property. The GST rate is set at 10%.
You may voluntary register for GST only if you are carrying an enterprise or intent to carry an enterprise and your GST turnover is $75,000 or less. If your GST turnover is more than $75,000 you are required by law to register for GST. If you provide taxi or limousine travel for fares you are required to register for GST irrespective of your GST turnover amount.
Pay as you go (PAYG) withholding is a system for withholding amounts from payments you make to employees and other businesses so they can meet their end-of-year tax liabilities.
* make payments to other businesses that do not quote their Australian business number (ABN).
* provide us with a PAYG withholding payment summary annual report.
Every company is required to appoint a public officer (for tax purposes only) within three months of commencing a business. A public officer must be at least 18 years of age, who is appointed by a company and answerable for all actions on behalf of the company for tax-related purposes. Examples include record keeping and submitting company tax returns. The public officer should be an Australian resident for tax purposes.
Who is an Australian resident for tax purposes?
not incorporated in Australia, but carries on business in Australia and has either its central management and control in Australia, or its voting power controlled by shareholders who are residents of Australia. For shareholders, partners or other entity associates individual residency requirements apply.
A non-profit organisation is an organisation that is not operating for the profit or gain of its individual members, whether these gains would have been direct or indirect. This applies both while the organisation is operating and when it winds up.