How to get an ABN

ABN stands for Australian Business Number. Just as an individual has a Tax File Number (TFN) a business  needs an  Australian Business Number (ABN).

Why do  you need an ABN

You  need an ABN because  businesses or organizations such as insurance companies, hospitals and clubs  will not  use your  services  if  you do not have an ABN.

This is because under the “pay as you go” taxation system in Australia, businesses receiving an invoice are required to “withhold tax” at the highest tax rate from their payments for goods and services if an ABN is not quoted.  Businesses do not want this headache of withholding tax.as they have to create withholding accounts etc – they do not mind doing it for employees but not for  suppliers etc.

Some of Assistanz’s organizational clients are insurance companies, hospitals and clubs. Typically they are paying the bill for an injured worker. (We call the jobs for these clients’ commercial jobs) if Assistanz’s service  providers  want to do these commercial jobs that pay better,then they should should get an ABN and   quote this ABN on a tax invoice and submit this invoice  when payment is being made by a company or business, i.e. when payment is not from the clients own personal money.

Advantages of having an ABN

1) When you have an ABN you can claim expenses on the job (travel costs, costs of clothes, materials and equipment… basically anything that was required to help you earn that income) as tax deductions.
2) Higher rates on Assistanz jobs-when jobs require an ABN Assistanzs rate is $29.00 per hour and you get to keep $24.00 per hour.

Disadvantages of having an ABN

More paperwork -You need to submit the equivalent of your tax returns – a Business activity statement every year. A transaction that involves an ABN can be better tracked by the ATO (Australian Taxation office)
Please note as your income is likely to be under 70K a year you need not register for “GST” when applying for an ABN.

How do you apply for an ABN?

You can apply for an ABN:
1) Electronically through the internet. Electronically you would get your ABN in one hour after applying.  Go to  www.ato.gov.au
2) On a paper application, available by phoning the ATO on 13 28 66, or
3) Through a Tax Agent, using the Electronic Lodgment System (ELS)

Please note the above is compiled by Mathew John and these are his understanding. Kindly discuss with your Tax Agent or Account or the ATO for a  100% correct understanding.

Steps for getting an ABN online  - ie through the ATO Website

This information below is not fully accurate as the web site form contents changes very often.. it is a good guide though. The answers are typical for  most of those who apply to register with ASSISTANZ, however your situation and circumstance may be different and you must answer what is appropriate to you.

• Go to Australian Taxation Office (ATO) web site….. www.ato.gov.au
• Select  the tab  called “Business”
• What do you want to do  - apply for  ABN, TFN or other registration
• Start here - ABN, TFN, GST,PAYG withholding 
• Apply online    
• Under registration on the Left hand side - Click on Apply for ABN
• Go to the bottom of Privacy statement for online transactions
• Click I’ve read this statement
• You will come ot a page starting with Apply for an ABN  under 
• At the bottom click on – Start a new ABN application.

 

• Create your own password
• Begin application
• Important information – go to the bottom and click next
• On page titled Apply for ABN – Application detail
• For taxation purpose which of the following is the applicant – Individual (Sole trader)
• Does  the applicant  currently have an  ABN – No
• Does the applicant wish to apply for an ABN - Yes
• Does the applicant have a TFN
• Does the applicant wish to apply for a TFN
• Does the applicant wish to apply for Goods and Service Tax – No
• Does the applicant want to register for fuel tax credits? – Select No
• Is the applicant required to register for Pay As You Go (PAYG) Withholding- Select No
• Description of  your business activity - Select Other

In page titled  Establishing an Enterprise

 

• *Have you started trading as an enterprise/business or undertaken activities in establishing your enterprise? -  Yes  (Important - do not write no)
•  *Are you applying for an ABN to operate as a contractor - yes
• Will your work agreement allow you to pay another person to perform work on your behalf - Yes
• Will you be responsible for providing heavy machinery to undertake your business activity - No
• Is the applicatnt a resident of Australia for tax purposes- yes
• Does the applicant want to register or be endorsed for any of the following? – leave blank
• If the Entity uses, or intends to use the services of a tax agent, what is the tax agent's registration number- leave blank
• Does the entity wish to register for access to the Tax Office's online services for business? – up to you

Then is applicant information which you can do yourself

• Your name should be exactly similar to your TFN Name
•  What is the Individual/Sole Trader's trading name? - put same as your name
• Does the Individual/Sole Trader have more trading names? - no
• What is the sole traders Tax file number

• Please  make sure you input you name correctly. It should be exactly as on your TFN ...
• One of my people whose name is Stephen Davies in TFN put his name as Steve Davies
• his application was rejected and he  took 28  days to get ABN. Normally it will come in 45 minutes when you apply online

Why is the individual applying for  an ABN -  to receive payment for services

 

• Is this your first time self employed providing personal services in Australia - yes
•  From what date does the Sole trader require an ABN – immediately ( todays date)
• Does the Individual/Sole Trader have more than one business location in Australia? No
• Does the Individual/Sole Trader have more than one business location in Australia
• In which States or Territories does the Individual/Sole Trader have business locations? Don’t select any
• What is the main Industry in which the Individual/Sole Trader operates? Other services
• Describe the main activity from which the Individual/Sole Trader derives the majority of its business Income.
• Does the Individual/Sole Trader operate an agricultural property
• Will the Individual/Sole Trader pay royalties, dividends or interest to non-residents OR report investment income paid to Australian residents – no
• Privacy – Name, Position held ( Sole trader)

Tax office Shop fronts:

If you find it too hard to get an ABN on the web site then please go to a Tax office shop front and they will help you.

Call 132861 to fix an appointment. Please  say  you want to get an ABN as you are running your own business (cleaning services) to get money.

Tax office shop fronts  are at the following suburbs

Sydney CBD,  2 Lang Street, Sydney NSW 2000
Chatswood :   Ground floor 501 Victoria Avenue  Chatswood NSW 2067
Parramatta  Commonwealth Offices, 2-12 Macquarie Street ,Parramatta NSW 2123
Hurstville  1st Floor, MacMahon Plaza,14-16 Woodville St, Hurstville NSW 2220