Advantages of Australian Business Number

The Australian Business Number (ABN) which refers to an identification number used on verification purposes of a particular business entity by providing the necessary details. The entities that apply for ABN include sole traders, limited companies and others. This identification number streamlines the communication lines between entities and governments agencies. Some of the advantages attributed to obtaining an Australian Business Number for companies that register an annual turnover of over $75,000 include; charity income tax exempt or qualifies an entity as a gift deductible receiving entity. The possession of an ABN exempts the entity from making payments due to other entities by preventing them from making deductions on the PAYG withholding tax otherwise the Pay-As-You-Go funds.

Energy grant credits can be claimed by entities enlisted as having ABN as prerequisite for the same. Through online access, any company intending or already in a business transaction with another can easily obtain relevant information regarding contacts and other company details essential in ordering processes and making of invoices. Through this, the company can equally conduct deals with the government due to transparency and credibility attributed to the company. Applying for an ABN has been made easy and registration can be made online without the need to visit the Australian Taxation Offices or the Australian Business Register’s office. No hidden charges are pegged on the online registration process upon visiting the Australian Business Register websites homepage.

However, it is optional to contact registered experts in this field who are equipped with the necessary information and tools with the guidance procedures in making successful Australian Business Number registrations. Distil Group founded by an accountant with experience offers reliable online registration facilities. Through this, one can actually concentrate on business affairs than running around working on regulatory requirements by simply letting registered personnel handle the ABN requirements.

Besides registration for an ABN, an entity making above $75,000 registers for the Goods and Services Tax (GST) as stipulated by the law. Getting an ABN is probably one of the most important phases of any business entity intending to indulge in extensive business affair at high levels with major tendering and contracting firms. For entities making less than $75,000, it is also wise to register for GST in order to maintain the current and prospective clients in order to remain competitive in the respective market. Non-profit organizations with turnovers above $150,000 have to register for GST but it also mandatory to have an ABN.

Entities to Make an ABN Application

Business institutions in Australia whether governmental or nongovernmental, are obliged to obtain the Australian Business Number (ABN) when the annual turnover of the particular institution hits a particular set threshold. Registration for ABN is available for companies, trusts, partnerships and other organizations. The process of making a valid application involves completing an ABN registration form online or by making the application through a reliable tax agent. The online registration is available at the Australian Business Register’s official website. Besides ABN registration for Companies, trusts, partnerships and other organizations, other options available for registration include; The Goods and Services Tax (GST), PAYG withholding Tax also called the Pay-As-You-Go withholding, Fuel Tax Credits, Wine Equalization (WET) and Luxury Car Tax. A File Tax Number (FTN) is also available for these entities as stipulated on the document NAT 2939.

However, this application is not legit for sole traders who need to get an ABN Number in Australia. The individual types of entities require completion of a different set of document (NAT 2938). Institutions representing a superannuation entity and when making an additional registration such as GST besides the ABN registration exempts the applicant from making this application. Government organizations and other agencies are also exempted from this registration form but should however; apply ABN from another set of documents specifically targeted for the governmental organizations.

The entities details should also be regularly updated incase of any changes in terms of contact details and on instances of relocation of the headquarters or institution premises. It is recommended that the changes be updated within 28 days. This can be made possible by contacting the relevant office and must only be done by contacts registered as legit entities’ contact by the Australian Taxation Office (ATO); otherwise the changes may not be effected.

All governmental organizations requiring registration information and services that include application forms, cancellation of existing registrations and updating of the registration details as recorded in the Australian Business Register must make contact with the Australian Taxation Office through official e-mail contact or by phone. It is worth noting that applying ABN in Australia has major advantages especially in streamlining communication with relevant government agencies and the general public during the process of making business transactions. In addition, if any details regarding a particular entity may result in safety issues, then making an online application is not the best way to go. Contac the ATO or the Privacy Commissioner’s website for further information regarding entity detail(s) suppression.