What is ABN (Australian Business Number)?
The Australian Business Number is an 11-digit identifier issued to businesses by the Australian Business Register. Without an ABN, payers must withhold 47% from your invoice. Required for GST registration, business name registration, and most B2B trading.
Example
A new freelance designer applies for an ABN free via abr.gov.au, receives it within minutes, and quotes it on every invoice. Without the ABN, clients would withhold 47% of payments.
Related terms
The Australian Company Number is the 9-digit identifier ASIC issues to every registered Australian company. It must appear on company stationery, websites, and public documents. Companies also have an ABN; the ABN typically incorporates the ACN.
The Tax File Number is a 9-digit personal tax identifier issued by the ATO. Every Australian taxpayer needs one to lodge tax returns, receive Medicare, and avoid having tax withheld at the top marginal rate (47%). Companies have a separate company TFN.
GST is a flat 10% tax on most goods, services and other supplies in Australia. Businesses with turnover of A$75,000+ (A$150,000 for non-profits) must register and remit GST quarterly via the Business Activity Statement (BAS).
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