The Australian Business Number (ABN) is a unique identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). The ABN was introduced on 1 July 2000 by John Howard's Liberal government as part of a major tax reform, which included the introduction of a GST.
Australian Business Register[edit]
The Australian Business Register (ABR) is maintained by the Registrar of the ABR, who is also the Commissioner of Taxation.[1] The Registrar registers entities, issuing them with an ABN.[2]
Not everyone needs an ABN, so let’s take a look at why you need an ABN and how to apply for one. What is an Australian business number? Similar to a tax file number, an ABN is a unique 11-digit number that makes it easier for businesses to interact with the Australian government. It is free to register and your ABN details will be stored in the Australian Business Register.
Entitlement to an ABN[edit]
The Registrar issues ABNs only to entities who are entitled to an ABN.[3] Entities do not have to be individuals (natural persons) or companies (legal persons). An entity can be –
an individual,
a body corporate,
a corporation sole,
a body politic,
a partnership,
any other unincorporated association or body of persons,
a trust, or
a superannuation fund.[4]
For an entity to be entitled to an ABN, it must –
carry on an enterprise in Australia,[5] or
carry on an enterprise that makes supplies connected with Australia,[6] or
be a company registered under the Corporations Act 2001 (Cth).[7]
Whether or not an entity is carrying on an enterprise is a question of fact and there are many circumstances where an entity will be carrying on an enterprise. Without being exhaustive, an entity will be carrying on an enterprise if it –
is in the form of a business,
leases property,
is a religious institution,
is a superannuation fund,
is an arm of the government, or
is a charity.[8]
The Registrar of the ABR can refuse an entity's application to be registered.[9] Equally, the Registrar can cancel an entity's registration and thus their ABN.[10] Both of these decisions are reviewable taxation decisions.
Applying for an ABN[edit]
An entity can apply for an ABN:[11]
online through the Australian Business Register portal,
using the services of a Registered Tax Agent, or
lodging a paper-based application with the ATO.
Before applying for an ABN the entity must have a tax file number (TFN).[12]
Format of the ABN[edit]
The ABN is an 11-digit number where the first two digits are a checksum. Unlike with the tax file number (TFN), the ATO has publicised the formula for checking and creating valid ABN checksums.[13] Also, the nature of the ABN algorithm means that any 9-digit number can be made into a valid ABN.
In the case of companies, the ATO determines the ABN by using the company's Australian Company Number (ACN) to which the two-digit checksum is prefixed.
See also[edit]
References[edit]
^Section 28 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Section 11 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Section 8 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Subsection 184-1(1) of the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
^Paragraph 8(1)(a) of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Paragraph 8(1)(b) of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Subsection 8(1) of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Section 9-20 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
^Section 13 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^Section 18 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
^'Archived copy'. Archived from the original on 7 February 2016. Retrieved 10 September 2015.CS1 maint: Archived copy as title (link)
^'Australian Business Number (ABN) - Information Planet Australia'. www.informationplanet.com.au.
^'Format of the ABN'. ABN Lookup. Retrieved 3 January 2019.
External links[edit]
Australian Business Register
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