Australian Business Number (ABN) – what is it?
Australian Business Number (ABN) is your personal business registration, issued by the ATO. Having this number allows you to work as an independent contractor, rather than employee. This saves the employer a lot of paperwork, periodical processing or other costs related to your employment. Not all industries are keen on contracting via ABN, but e.g. in construction this setup is very popular.
Having an ABN really means you have your own business in Australia, and can conduct all kinds of business activities (subject to licenses etc.) and employ other people.
Business Tax & Money House can help you with applying for ABN and meeting all your taxation obligations. We support and advise many businesses, and we are efficient working online with our remote clients. We can also advise you once your business will grow and your needs will raise with your income.
Main tax obligations of Australian businesses
- Main taxation obligation is filing the annual Tax Return, business return is only part of the annual income declaration. More information and checklists to watch your business income and expenses can be found in the Tax Return section.
- You must also provide the ABN on your invoices, otherwise the payers can deduct 46.5% of your payment towards your Tax (it will be paid to the ATO).
- If your revenue exceeds $75,000 per year, you must also register for GST (Goods and Services Tax – equivalent to European VAT). You can register voluntarily when your revenue is less than that.
- Remember about insurances – Workers Compensation may be compulsory if you will employ someone. If you are Sole Trader, WC doesn’t cover you. Public Liability and Income Protection may also come handy from time to time.
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