Australian Business Number
What is Australia Business Number?
The ABN allows you to work as a freelance or to start a business in Australia. Unlike the TFN, which you need to work for someone else.
The advantage is you receive 100% of the salary without any tax eductions, but at the end of the fiscal year, it is necessary to file and pay all the taxes at once.
Keep in mind you have to pay your own contributions if working as a freelance.
How to apply for the ABN?
Compared to other countries and other official processes, getting your ABN Number is very easy.
It is very important that you already have the Tax File Number (TFN) before you start applying. If you have not already done so, I recommend that you read How to Obtain a TFN (Tax File Number) in order to do so.
Who needs ABN?
ABN is not mandatory to work in Australia, the ABN number can be very useful for self-employed people (e.g. architects, house or office cleaners, etc). You can find all the information you need about when you should have an ABN and what type of ABN you need at www.ato.gov.au.
Who can apply for ABN?
Although most people who come to Australia do not need to take out an ABN, it can be useful to take it out if you are going to work as an architect, baby sitter, cleaner or construction worker.
Usually the company will tell you if they want you to work using the TFN (Tax File Number) or the ABN.
When you use only the TFN it is because the company hires you as an employee. However, when you use an ABN it means that you will not have a time commitment with them, but that you will offer certain services that may be occasional or repeated over time, but are not subject to a contract.
You will need to bill the company for each service you provide. In these invoices you will have to include:
Your ABN number
The date on which the invoice is issued
The word “Invoice” used as a heading
The fiscal address of the company that hires your services
The “Description” specifying what services are charged for
Your bank details, i.e. the account to which the deposit will be made
The total amount of the invoice, since one invoice can be made for the collection of several services.
*We are not processing the ABN application, the link above leads to our partner, tax specialist company, processing the official tax file number registration on your behalf, not the government website. However the Australian business number you are going to receive, is the official document issued by the government.