An Australian Buisness Number (ABN) is a unique 11 digit number that identifies your business to deal with the Australian Taxation Office (ATO) and other government agencies with one identifier.
In order to be eligible for an ABN you must be able to demonstrate that your business structure is in place. You must:
- Be carrying on an enterprise in Australia, or
- In the course of carrying on an enterprise make supplies connected with the indirect tax zone, or
- have undertaken sufficient activities to commence an enterprise
Different business structures can meet the above elibility to obtain an ABN, and these include:
An ABN is not compulsory and not everyone is entitled to an ABN however you will need an ABN to comply with other tax obligations such as GST. If a business makes supplies of goods or services to another business, the supplier would need to quote an ABN. If the supplier does not quote an ABN, the payer may need to withhold tax from the payment.