• New Wave Accountants

Our Guide to Your ABN and How It Impacts Your Tax Return

Spearheading a business in Australia undoubtedly requires wearing many hats as an owner, especially for start-ups who are still juggling different responsibilities on their plate to make it big in their niche. If you’re an aspiring entrepreneur, then one of the crucial factors you need to complete as early as possible is obtaining an Australian Business Number.


What is an Australian Business Number (ABN)?


If you’re a budding business owner who wants to solidify your foothold in the industry, then having an ABN is crucial in legitimising your venture—no matter the size or scale. In essence, an ABN is an 11-digit number that identifies and distinguishes your company in your community and the government.


Keep in mind that an ABN is different from Tax File Number (TFN), which is a document required by the Australian Tax Office (ATO) for every professional working in Australia. On the other hand, an ABN is a must-have for every owner operating a business in Australia, which allows your business to gain the following:


  • Uniquely identify your business to the market when ordering and invoicing for your goods or services;

  • When you receive payments for your goods or services, an ABN prevents you from getting a Pay-as-You-Go (PAYG) tax;

  • An ABN gives you the right to claim goods and services tax (GST) credits;

  • An ABN gives you the right to claim energy grants credits;

  • An ABN allows you to obtain an Australian domain name.


Registering for an ABN for Business Owners: the Basics


When registering for an ABN, you first have to know if you’re entitled to one. The following are the types of businesses that need an ABN:


  • If you’re running or starting an enterprise in Australia;

  • If you’re making supplies with Australia’s indirect tax zone for businesses operating outside and within Australia;

  • If you’re a Corporations Act company;


When you’ve confirmed your eligibility to obtain an ABN, then you can move forward with applying for one and other important business registration requirements through the Business Registration Service. You will have to know your business structure and show your proof of identity along with extensive details of your company’s operations.


The Bottom Line: Getting the Right Tax Documents for Your Business


If you’re an employee, freelancer, or contractor working in Australia, then you only need a TFN and not an ABN since the latter is restricted to professionals who are running their own business, enterprise, or organisation. So long as you handle business operations in Australia, then an ABN is necessary, so it’s easier to stay on top of your transactions for tax purposes.


How Can We Help You?


Running a business is often a balancing act, but we can help stabilise your strategy by offering financial mentoring services aimed to grow your venture. New Wave Accounting handles one of the best accountants in the Gold Coast, so get in touch with us for all your bookkeeping and accounting needs.


We understand that keeping tabs on your finances and taxes can be overwhelming, so check out our services and learn more about how we can help you today!


7 views0 comments
1564196690.png

5  WAYS TO SHRINK YOUR TAX THIS FINANCIAL YEAR

We have saved our clients $2 million in tax over the last 12 months with the 5 unbelievably powerful strategies outlined in this free report.
 
Download it now and implement the strategies before the ATO changes their rules. 
Thanks for submitting!
FREE GUIDE