TFN,ABN and GST, are often needed to live and work in Australia, so it is important to understand these three tax concepts and the difference between them.
TFN is the tax number (Tax File Number), which is the only number assigned to an individual (individual) by the Australian Inland Revenue Service ATO, which is usually 9-digit and is mainly used to manage personal taxes.
ABN is an Australian business number (Australian BusinessNumber), is a unique set of 11-digit numbers usually used by an organization to deal with the Inland Revenue Authority or another organization such as a company.
There are generally four forms of organization in Australia: corporate (company), partnership, (partnership), trust, (trust), self-employed business, (sole trader). When doing business, such as invoice (invoice), you usually need ABN number. Application for ABN is not mandatory, but if GST (goods and Services tax) is required, there must be ABN. ABN is administered by the Australian Inland Revenue Authority (ATO) and the Australian Business Registration Office (ABR).
GST:, Australia, goverment, Australia. For 10% of the price of the goods. GST is levied on almost every commodity in life (buying behavior in all respects, including bus tickets, etc.)
The difference between TFN and ABN
TFN
Usually at work, as an employee, (Employee) is required to withhold personal tax hours at the employer's (Employer) (PAYGW--PAYG withholding tax), when the employee and the boss are in an employment relationship, and the employee generally enjoys all the rights of the employee (for example, The boss will pay the employees, and if you are satisfied, the boss will have to pay you a pension, superannuation, annual leave, and so on.
If you need to use the ABN number, then you basically belong to the self-employed (Sole trader), which belongs to the business (Business) category, and the relationship with the boss is business-to-business (business to business). Then your relationship is not between employees and employers. According to your agreement / contract, the money (contract) gives you is all your income (equivalent to contracting / subcontracting, etc.).
The boss has no obligation to be responsible for the individual tax of the employee, and the employee needs to declare / pay the "pay-as-you-go" (PAYG), pension (superannation), goods and services tax (GST) and so on. In this case, when you file your taxes at the end of the year, your total income (total income) will include the income from working as an employee, (employee), and the income from doing an individual business, (sole trader).
GST
In general, personal income (income tax) is required to pay personal income tax. GST is a goods and services tax (Good and Service Tax), GST has no direct relationship with personal direct income.
"GSTis a broad-based tax of 10% on most goods,services and other items sold orconsumed in Australia." GST is a tax other than personal income tax that requires payment of GST, when goods, services, or related activities are sold in Australia This tax is generally 10% of sales.
GST can also be deducted, that is to say, when providing sales in business, (GST collected), can reduce the tax (GST paid), paid when buying goods or services from others. What ultimately needs to be handed over to the IRD ATO is that you charge someone else's tax (GST collected) minus the tax (GST paid). Paid on the purchase of goods or services In addition, if the annual income does not exceed $75000 per year, you can not register GST.
Registered ABN
Materials required to register Australian business number ABN, excise tax GST declaration:
Company's Australian company number ACN;
Personal tax number Tax File Number; for head of the company Director and secretary Secretary
(B) personal information on Director and Secretary, secretary of the company's registrar (year of birth, place of birth, current address, contact number and e-mail address);
The nature and direction of the company's business in Australia;
The company's registered address in Australia, contact phone number, fax and e-mail address;
Choose the way to declare GST: monthly, quarterly or annual;
If you are not familiar with it, it is recommended to find a professional accountant for registration.
