Registering for an Australian Business Number

The Australian Business Number (ABN) is an eleven-digit number that identifies you with the Australian Tax Office (ATO) and other government departments. Although it’s not compulsory to have one, you’ll need one when dealing with other businesses in order to avoid high withholding taxes. You need to put your ABN on your invoices or sales documents otherwise other businesses may withhold tax at the top marginal rate when they pay you.

An ABN also allows you to:

• complete a business activity statement
• avoid paying ‘pay as you go’ (PAYG) tax on payments you receive
• claim Goods & Services Tax (GST) credits for any GST you have paid for goods and services you have used in your business
• obtain an Australian domain name.

When you apply for an ABN, you’ll also have to decide whether to register for GST. If your business turns over more than $75,000 per year, then you must register for GST and will need an ABN to do this. If you don’t need to register for GST, you can still apply for an ABN.

How do I apply for an ABN?

There are a number of ways that you can apply for an ABN:

1. On-line: Register via the Business Entry Point website at www.abr.gov.au.
2. By phone: Ring the Business Infoline on 13 28 66.
3. By mail: Lodge a written application with the ATO. Most post offices have application forms.
4. Through your accountant or tax agent: They can lodge your application through the Electronic Lodgement System.

Once you’ve registered for an ABN, the tax office will provide you with your registration details.