The 7 Best Things About Registering Australian Business Number

What Is Australian Business Number or ABN?

An Australian Business Number (ABN) is a unique number issued by the Australian Taxation Office (ATO) to businesses operating in Australia. The ABN is used to identify businesses for tax and other purposes.

Businesses can apply for an ABN online or through their registered tax agent. Generally, a business must have an ABN to register for goods and services tax (GST), to be paid wages, to import or export goods, and to receive certain payments from the government.

The ABN is also used as a key identifier for the Business Portal on the ATO website. This portal provides a range of information and services for businesses, including registration for GST, payment of invoices and access to a range of business forms.

The ABN is an 11-digit number that is unique to each business. It is made up of two parts: the Business entity identifier (BEI) and the Unique taxpayer reference (UTR). The BEI is a six-character alphanumeric code assigned to each business when it registers for an ABN.

The UTR is a five-digit number generated from the business’s Australian Company Number (ACN) or Australian Registered Body Number (ARBN).

The ABN will be progressively replaced by the Tax file number (TFN) over the next few years. businesses will still need an ABN until 31 December 2020. After this date, businesses will need to quote their TFN instead of their ABN on all transactions.

If you’re an Australian business owner, then you need to register for an Australian Business Number (ABN). An ABN is a unique 11-digit number that identifies your business to the government and other businesses. It’s free to register for an ABN, and it only takes a few minutes.

7 Best Things About Registering Australian Business Number

Here are seven reasons why registering for an ABN is a smart move:

  1. An ABN makes it easy for customers to find you. When customers see your ABN on invoices, quotes, or other paperwork, they’ll know that you’re a legitimate business. This can help build trust and encourage repeat business.
  2. An ABN makes it easier to claim tax deductions. If you’re registered for an ABN, you can claim tax deductions on business expenses such as travel, office supplies, and advertising.
  3. An ABN makes it easier to get paid. When you provide your ABN to customers, they’ll know that they can pay you electronically without having to worry about processing fees. This can save both you and your customers time and money.
  4. An ABN helps you stay compliant with Australian tax laws. By registering for an ABN, you’re declaring that your business complies with all Australian tax laws. This can help protect you from penalties down the road.
  5. An ABN gives you access to government resources and funding programs. The Australian government offers several resources and funding programs for businesses, and having an ABN makes you eligible to apply.
  6. An ABN allows you to trade internationally. Once your business is registered for an ABN, you can start doing business with companies in other countries. This can help expand your customer base and grow your business.
  7. An ABN is free to register for and takes only a few minutes. There’s no reason not to register for an ABN, so why not get started today?

Need more convincing? Check out the Australian government’s website for more information on registering for an ABN. And when you’re ready, head over to the Australian Business Register and create an account. It’s fast, easy, and free!

Check also on this website for their explanation on how and when to register ABN. 

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