We want to make sure all of our businesses are as genuine and as committed to quality customer service as we are. So we’re making it compulsory for all new businesses to supply us with a valid Australian Business Number (ABN). With the introduction of this new function, we thought we’d give you a quick run-down (or refresh your memory) about the ins and outs of ABNs and what it might mean for you.
Many freelancers who earn under the $75,000 threshold assume that an ABN will force them into paying extra tax. This just isn’t true. In fact, there are tax claim benefits to having an ABN. An ABN allows your business to claim back GST credits, claim fuel tax credits you may be eligible for, offer fringe benefits to employees, and register to use a PAYG (pay as you go) withholding system.
However, you don’t need to worry because you can claim it back at the end of the year. Everybody likes steady cash flow.
You can apply online via the Australian Business Register website. If you have all your information ready to go (i.e. your tax file number and business details), your ABN should be allocated immediately.
Not only does it help you deal with government agencies and departments, it also makes it easier to deal with other businesses.
You must have an ABN to do so.
When you have a valid ABN, customers will see you as a more trustworthy and legitimate business.