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.
Australian Business Register
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
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; or
- a body corporate; or
- a corporation sole; or
- a body politic; or
- a partnership; or
- any other unincorporated association or body of persons; or
- a trust; or
- a superannuation fund.[4]
For an entity to be entitled to an ABN, it must be:
- carrying on an enterprise in Australia;[5] or
- carrying on an enterprise that makes supplies connected with Australia;[6] or
- 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; or
- it leases property; or
- it is a religious institution; or
- it is a superannuation fund; or
- it is an arm of the government; or
- it 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
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
Format of the ABN
The ABN is an eleven 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. 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 is prefixed the two-digit checksum.
See also
References
- ↑ 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).
- ↑ http://abr.gov.au/For-Business,-Super-funds---Charities/Applying-for-an-ABN/Apply-for-an-ABN/