Australian Business Number
The Australian Business Number (ABN) is a unique identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). The ABN is a component of the System introduced by John Howard's Liberal government on 1 July 2000.
Contents
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 and, in doing so, issues them with an ABN.[2]
Entitlement to an ABN[edit]
The Registrar issues ABNs only to entities who are entitled to an ABN.[3] Entities do not have to be individuals (natural persons) or companies (legal persons). An entity 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 of the ABR can refuse an entity's application to be registered.[9] Equally, the Registrar can cancel an entity's registration and thus their ABN.[10] Both of these decisions are reviewable taxation decisions.
Applying for an ABN[edit]
There are three ways to legally apply for an ABN:[11]
- through the Australian Business Register portal,
- using the services of a Registered Tax Agent, or
- a paper-based application via the ATO.
To apply for an ABN you will need as a prerequisite a tax file number (TFN).[12]
Format of the ABN[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.[citation needed] 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).
- ^ "Archived copy". Archived from the original on 2016-02-07. Retrieved 2015-09-10.
- ^ https://www.informationplanet.com.au/australian-business-number-abn
