What is an ABN in Australia?

An ABN in Australia is an 11 digit number identifying a business. ABN stands for Australian Business Number.

An ABN in Australia is an Australian Business Number. In theory, this is something only businesses need to worry about. In practice, many sole traders and freelancers end up getting one to make form-filling and contracts easier.

When do you need an ABN in Australia?

An ABN in Australia is an 11 digit number used to identify your business both to the government and other businesses. Any business with a turnover of more than $75,000 has to register to pay GST (Goods and Services Tax). Similarly, any business reaching that GST threshold must have an ABN. If you’re running an enterprise in Australia and look even vaguely close to breaking the GST threshold, it’s strongly advisable to get an ABN sorted.

The basic purpose of an ABN is to keep track of business transactions for tax purposes. But having one also allows you to avoid Pay As You Go tax on payments you get. It also allows you to get an Australian domain name and claim GST credits against goods and services used for the business.

Many sole traders and freelancers don’t technically need an ABN as their turnover is under the $75,000 GST threshold.

Applications for an ABN should be made via the Australian Business Register.

Are you entitled to an ABN in Australia?

There is no single test of whether someone is entitled to an ABN, but the following factors are taken into account.

There is significant commercial activity of reasonable size and scale.
It is not a hobby. There is an intention to make a profit from the activity, preferably backed up by a business plan.
Records are kept, and the activity is conducted in an organised, business-like way.
The activity is repeated.
The applicant has relevant knowledge or skill.

What is an ABN in Australia?

When do you need an ABN in Australia?

Are you entitled to an ABN in Australia?

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