Australian Business Number
The Australian Business Number (ABN) is a unique 11-digit identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). The ABN was introduced on 1 July 2000 by John Howard's Liberal government as part of a major tax reform, which included the introduction of a GST.
The law requires each entity that carries on a business in Australia has an ABN and that the ABN appear on each tax invoice and other tax related documents issued by the entity.
Australian Business Register
[edit]The Australian Business Register (ABR) is maintained by the Registrar of the ABR, who is also the Commissioner of Taxation.[1] The Registrar registers entities, issuing them with an ABN,[2] while the Commissioner of Taxation issues the entity a tax file number.
Entitlement to an ABN
[edit]The Registrar issues ABNs only to entities that are entitled to an ABN,[3] which can be:
- an individual,
- a body corporate,
- a corporation sole,
- a body politic,
- a partnership,
- any other unincorporated association or body of persons,
- a trust, or
- a superannuation fund.[4]
For an entity to be entitled to an ABN, it must:
- carry on an enterprise in Australia,[5] or
- carry on an enterprise that makes supplies connected with Australia,[6] or
- be a company registered under the Corporations Act 2001 (Cth).[7]
Whether or not an entity is carrying on an enterprise is a question of fact and there are many circumstances where an entity will be carrying on an enterprise. Without being exhaustive, an entity will be carrying on an enterprise if it:
- is in the form of a business,
- leases property,
- is a religious institution,
- is a superannuation fund,
- is an arm of the government, or
- is a charity.[8]
The Registrar can refuse an entity's application to be registered.[9] Equally, the Registrar can cancel an entity's registration and thus their ABN.[10] Each of these decisions are reviewable taxation decisions.
Applying for an ABN
[edit]An entity can apply for an ABN:[11]
- online through the Australian Business Register portal,
- using the services of a registered tax agent, or
- lodging a paper-based application with the ATO.
Before applying for an ABN the entity must have a tax file number (TFN).[12]
Format
[edit]The ABN is an 11-digit number where the first two digits are a checksum. Unlike with the tax file number (TFN), the ATO has publicised the formula for checking and creating valid ABN checksums.[13] Also, the nature of the ABN algorithm means that any 9-digit number can be made into a valid ABN.
In the case of companies, the ATO determines the ABN by using the company's Australian Company Number (ACN) to which the two-digit checksum is prefixed.
See also
[edit]References
[edit]- ^ Section 28 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Section 11 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Section 8 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Subsection 184-1(1) of the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
- ^ Paragraph 8(1)(a) of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Paragraph 8(1)(b) of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Subsection 8(1) of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Section 9-20 of the A New Tax System (Goods and Services Tax) Act 1999 (Cth).
- ^ Section 13 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ Section 18 of the A New Tax System (Australian Business Number) Act 1999 (Cth).
- ^ "Apply for an ABN | Australian Business Register". Archived from the original on 7 February 2016. Retrieved 10 September 2015.
- ^ "Australian Business Number (ABN) - Information Planet Australia". www.informationplanet.com.au.
- ^ "Format of the ABN". ABN Lookup. November 2014. Retrieved 3 January 2019.