The Australian business number (Australian Business Number), is a set of 11-digit numbers, usually used by an organization to deal with Australian Taxation Office (ATO) or another organization, such as a company. Each enterprise has its own unique ABN, and ABN is not equivalent to the tax number (TFN), companies also need to apply for their own tax number.
Why do you need ABN?
ABN is the number of details that (Sole trader) facilitates each other's business or organization to confirm when dealing with other enterprises. And in self-declaration / payment of "pay-as-you-go" (PAYG), pension (superannation), goods and services tax (GST) and other commercial tax registration, ABN can avoid deducting the amount of payment paid to you.
What kind of people need to have ABN?
You're going to use ABN when the boss or the customer makes it necessary to deal with you with ABN. For example, when you go to a clean, a short, a taxi, or you have a small business, you need ABN when you need to invoice a customer.
Non-Australian residents engaged in business activities in Australia are also required to register ABN. Non-Australian residents are required to provide proof of Australian tax number (TFN) or business activity in Australia upon application.
What qualifications are required to apply for ABN
Strictly speaking, not everyone can apply for ABN. You must start or have started a similar business business in Australia in order to be eligible to apply for ABN. But in fact, many employers will ask you to work for them in the form of ABN. If you are providing services as an employee or carrying out activities as a hobby, you are not eligible for ABN. for these services and activities
Personally, owning ABN means you are a self - employed person.
The independent contractor means the following:
You have entered the business tax system and are no longer regarded as employees
May not receive the pension that the employer should pay (super)
Tax must be paid to the Inland Revenue Department on its own
If you are injured at work, you may not be protected from industrial injury compensation
You may need to buy your own commercial insurance.
When can I start applying for ABN
For an individual, it is best to apply again after you get a TFN. This will speed up the application speed of the ABN.
For companies or other forms of organization, you can apply for TFN and ABN. on ABR's website at the same time.
Where can I apply for ABN
The quickest way to apply for ABN is to apply (www.abr.gov.au) on the website and this method is free. If you request a registered tax agent to apply for you, you may be charged with a service charge. The on-line notification of the ABN will be received immediately after the application has been completed and after the review.
What should I pay attention to when applying for ABN
When applying for ABN, it is necessary to ensure that the information provided is sufficient, accurate and true, and that sufficient and accurate information can improve the success rate of the application.
If untrue or misleading information is provided when applying for ABN, each item of false information will be fined up to $10200. Exemptions from fines can be granted in the following two cases:
ABR thinks that when you make a mistake, you have taken reasonable attention to prevent it from happening;
· Information that is false or misleading before the ABR is in contact with you.
Results of submission of ABN application
After the application of ABN is successful, you will receive an 11-digit code immediately and start applying for other business registrations, such as GST. Download or save the ABN's confirmation and ABN's information.
If ABN's application fails, you will receive a rejection letter within 14 days, including the reasons for the rejection and other alternatives.
What obligations do ABN holders have?
At the request of law, if any information changes, such as name, address, contact information, etc., the ABN holder shall notify the ABR (Australian Business Register) of the change within 28 days and may update the information online. The names of enterprises and legal persons need to contact ATO or Australian Securities & Investments Commission (ASIC). Directly
When ABR writes asking you to provide information related to your ABN information or confirm your identity in registration, you must comply with this requirement.
Once you have stopped operating activities, the registration of ABN shall be applied immediately after the performance of all tax obligations.
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