What is the Australian Business Number (ABN)?
The Australian business number (ABN) is a unique 11 digit identifier that makes it easier for businesses and all levels of government to interact.
Is an ABN mandatory?
It is not compulsory to have an ABN, but it is an essential component for businesses to operate within the goods and services (GST) system. If you are registered for GST, you will need to put your ABN on your invoices to make them 'tax invoices'.
When will you use your ABN?
Examples of when you may need to use your ABN include:
- when dealing with the ATO (the ABN is quoted as a reference)
- in the future, when dealing with other government agencies subsection 3(1) A New Tax System (Australian Business Number) Act 1999
- so that other businesses will not withhold tax at the top marginal rate from payments they make to you
- when supplying goods and services to other businesses (and other entities carrying on enterprises)
- if you want to be endorsed as a deductible gift recipient and/or you want to be endorsed as a tax concession charity or income tax exempt fund
- to account for or offset your taxation obligations on an activity statement.
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