Australian Business Number (ABN)

Definition

The Australian Business Number (ABN) is a unique 11-digit identifier issued by the Australian Government to organisations engaging in business activities within Australia. 

What is an Australian Business Number?

The ABN is used to identify businesses when dealing with government agencies, suppliers, customers, and other organisations. It helps streamline business transactions and reduces the need for multiple identifiers. Having an ABN is essential for businesses to register for the Goods and Services Tax (GST). Businesses with an annual revenue of $75,000 or more are required to register for GST.

Sole traders, partnerships, companies, trusts, and other organisations operating in Australia are eligible to apply for an ABN. Each organisation is issued a unique ABN that remains unchanged even if there are changes in business structure or ownership.

To get an ABN, businesses need to apply through the Australian Business Register (ABR). The application process is relatively straightforward and can be done online. However, certain eligibility criteria must be met, and accurate information must be provided.

Businesses with an ABN have certain obligations, including maintaining accurate records, filing tax returns, and complying with taxation laws and regulations. Failure to meet these obligations can result in penalties or the cancellation of the ABN.

Example of an Australian Business Number

Let’s say there’s a small catering business called “Delicious Bites Catering.” When they register their business with the Australian Taxation Office (ATO), they are issued an Australian Business Number (ABN). The ABN for Delicious Bites Catering might look something like this:

ABN: 12345678901

With this unique identifier, Delicious Bites Catering can conduct business transactions, register for GST, and interact with government agencies, suppliers, and customers across Australia.