Australian business numbers (ABN’s) were introduced on 1 July 2000 to enable businesses in to deal with a range of government departments and agencies using a single identification number.
Do I need an ABN?
If the invoice is made in the course of an activity that is of a private or domestic nature, then you do not need an ABN to invoice.
You need an ABN if you invoice businesses.
If you are invoicing a business and you don’t include an ABN on your invoice then the business must withhold 47% (from 1 July 2017) from any payment they make to you and send the withheld amount to the ATO. Office.
Not everyone is entitled to an Australian business number (ABN).
Companies registered under the Corporations Law and business entities (including individuals) carrying on an enterprise are entitled to an ABN.
Employees and hobbyists are not entitled to an ABN as they are not carrying on an enterprise.
Self-funded retirees do not need an ABN. They continue to use their tax file number when reporting their annual income to the Tax Office.
An ABN is usually required if you are registering for:
> goods and services tax
> fuel tax credit, or
> pay as you go withholding.
The ABN is a public number which does not replace your tax file number. When you receive your ABN, some business details will be placed on the Australian Business Register. This register is administered by the Australian Business Registrar, who is also the Commissioner of Taxation.
Refer to the links below for more details about ABN's & ACN's.