Are you operating a business in Australia? If yes, this piece of information is definitely going to be beneficial for you. The first step to running a legal business in Australia is to identify it. As it’s unlawful to run a business in Australia without an ABN. ABN is a short form of Australian Business Number. Do you want to know how to get an ABN?
Well, it’s very important to know about the ABN (Australian Business Number) before you apply for it. If you’re doing an activity in Australia that helps you generate revenue, you must get an ABN. ABN is what you need if you’re operating a business on a commercial scale in a systematic manner. No matter how small or big revenue your business generates, you still need to get an Australian business number.
Let’s dive deeper and see, how to get an ABN, what is it and what happens if your application is approved or denied.
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What is an ABN Number?
The ABN is a unique set of 11-digits. It represents your business to the Australian government and community. You need an ABN to identify your business in Australia. Therefore, you must get it. Generally, ABNs are used for business transactions and other business dealings to verify your business identity.
For tax purposes, the Australian Business Number (ABN) is the most efficient way to keep track of your business transactions. As a business owner, you can also use your ABN to inform the public about your company.
ABN – Why do you need one?
If your business makes $75,000 or more a year, it’s mandatory by law for you to get an ABN. If your business GST income is less than $75,000, you are still eligible to apply for an ABN. As soon as your business has an ABN, you can register for GST.
The ABN enables your business to register to claim back GST credits. If you’re eligible and register to use the pay-as-you-go withholding system, you can claim fuel tax credits. Additionally, your business might be able to offer extra benefits to employees with the ABN.
If you get an ABN, it’ll make it easy for your business to deal with government agencies and other businesses as well. So, it’s essential to get an ABN to streamline your business dealings and keep tracks of business transactions.
How to Get an ABN? – 12 Thing You Need to Apply!
Check out the 12 most important things below which you must have to apply for an Australian Business Number.
- Tax file number (TFN) and the tax file numbers of any associates, such as directors, trustees, and partners.
- If you use a registered agent, provide with the tax or BAS agents registered agent number
- If you are using professional adviser services, you must have the Professional adviser number. You can provide their licence number such as the Australian Financial Services licence (AFS licence)
- Previously held an Australian Business Number
- Australian registered body number (ARBN) or Australian company number (ACN). Registrable organisations and companies can register for an ACN or ARBN by contacting the Australian Securities and Investments Commission (ASIC)
- ABN date must be provided. This is the date that you expect to start any business operations – for example, buying stock. Ideally, this date should not be beyond 6 months when you apply in the future.
- Legal name of the entity/company. It must appear on all the legal papers and official documents.
- Authorized contacts – this can be a registered tax or BAS agent who has the authority to amend or update information for the company.
- Details about associates – there’re different associate requirements for all types of entity
- Provide your business’s contact information, such as postal address, home address, email address and contact number. There are a few requirements for your email address. For example, it must be between 5-200 characters long, without spaces, and must not begin with ‘support@’, ‘Sales@’ or ‘info@’.
- Business activity – the primary source of income for your company, such as agriculture, manufacturing, construction, and investment. Self-managed super funds might not operate a business. Due to this, it may not have a main business activity.
- Business locations – You must provide businesses physical locations for all premises operated by your company. As long as there is no threat to the safety of people as a result of the disclosure e.g. a women’s refuge.
How to Get an ABN? – Application Process!
To apply for an ABN, you can visit the website of Australian Business Register. Fill out the online application form there. As the Australian Business Register manages the ABN registration process. So, you can apply through its website. It’ll take a few minutes to submit your application.
What is the fee for an ABN?
It’s totally free of cost. The Government doesn’t charge any fee to get an Australian Business Number. However, if an accountant or business manager handles it, they may charge you a fee.
Is It Possible to Use One ABN for Multiple Businesses?
Yes, you can use the same ABN. It’ll be possible if you’ve multiple businesses running under similar structures. As it highly depends on how your business is structured. However, you will need an ABN for each of them if the structure of your business and operations vary.
How to Get an ABN? – Importance of ABN!
It’s important to get an ABN for your business in Australia. As it makes it easier for you to keep track of your business transactions for taxes.
Though it’s required by law to get an ABN if your business earns around $75,000 or more a year. You can still apply for an ABN if your business GST income is less than $75,000. Registration for GST can be done as soon as your business has an ABN. Furthermore, if you pay GST on goods or services for your business, you must have an ABN and be GST registered to claim GST credits.
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What Happens After Your Application Gets Approved?
Once your application for ABN gets approve:
- Your 11-digit ABN will be sent to you right away.
- After you receive confirmation of your ABN and your ABN details, you must print them or save them.
- You may apply for other business registrations, e.g. GST.
- The Australian Business Register (ABR) will be updated with your details. If you have privacy concerns, you can request that certain details not be shared.
- Keeping your details up-to-date will be your responsibility.
- The Australian Business Register may need to check your application for details. It can request more information if you receive a reference number. Your application will be reviewed within 20 business days. Moreover, you’ll be contacted if more information is required.
What If Your Application Gets Rejected?
You’ll get a refusal number if your application gets rejected. In addition, within 14 days, you will receive a letter stating that your application was rejected. It’ll also include the reasons for rejection, as well as your options for appealing the decision.
How to Get an ABN? – Final Thoughts!
It’s very important to get your Australian Business Number to run your business lawfully in Australia. If you want to apply for an ABN, you must have certain things for your application. We’ve penned down the most important details of ABN. Still, if you don’t understand how to get an ABN, you can book a consultation with us right now!
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