What is the ABN Registration Service and What are its Benefits?

ABN is the abbreviation for Australian Business Number, it is a unique 11-digit number issued by the Australian Taxation Office (ATO) to each business in Australia who are eligible to have an ABN or for whom it is compulsory to have an ABN. ABN helps to differentiate your business from the other businesses in Australia. If you are running your business in Australia, then it is more likely that either you would have applied for the ABN or you will apply for it in the future. ABN is just not a licence or certification; it is much more than that, it authenticates and validates your business for schemes and benefits by the Australian Government.

What is the importance of getting an ABN?

If you are eligible to have an ABN then you must get an ABN in order to avoid legal problems and consequences. It also includes a lot of perks and benefits. We have prepared a list of benefits of having an ABN.

Benefit 1: You get easily identified

While operating a business, everybody wants to have a unique name, image and identity, that sets the business apart from others. ABN gives you the identity as a business and your ABN cannot be owned by another business, offering complete uniqueness. Once you get your ABN, you shall register your Business name on the national level. Registering your business name is like getting the ABN only. This makes it impossible for other businesses to register with the same name.

Benefit 2: No temporary pay cuts

Once you are registered with the help of ABN Registration services and you have received your ABN,  the government will be able to keep track of your taxes. Therefore, they won’t doubt and compromise your pay cuts. However, if you don’t have an ABN and a business decides to pay you, then they will have to pay 47% of the amount to the Australian business register Taxation Office, which is withheld temporarily by the Australian Taxation Office. Though you will receive the money, sometimes that withheld capital can pull you out of tough situations or can be a good investment. If you have an ABN, pass it to the business making the payment and you will be able to receive the full payment in Sydney and all of Australia. Another benefit is that it allows you to earn $18,200 AUD yearly without paying any taxes.

Benefit 3: Tax Deductions and Tax Credits

The payments made by the Australian businesses for running their business are completely tax-deductible. Having an ABN makes you eligible for claiming the Tax deductions; otherwise, you cannot claim them without having an ABN. Multiple purchases are made by any business to perform smoothly and uninterrupted during the course of a financial year, tax is paid every time on those goods and services. All the purchases made are filed for Tax deductions at the end of each financial year.

Benefit 4: Energy Credits

If you are a business that uses greener and cleans fuel as a source of energy for business, then you are eligible to receive money through the Energy Grant Scheme by the Australian government. Energy credits are given to the Business following the greener options to boost their contribution towards a better future. The eligibility criteria for receiving the Energy Grant Credit are that you shall use green and clean fuel options for your business and your business is registered with the Australian Taxation Office.

Benefit 5: Australian Domain Names

If you utilise ABN Registration service and have an ABN for your business, then you do have the access to register your business on the internet with domain names having suffixes as “.au’ or “.com. au”. This will not only give a platform and boost to your business but also provide authenticity to the business name on the internet. This benefit is definitely not a major one, but to avail the benefit you must possess an ABN or else you cannot access it.

What Things Do You Need Before Applying For An ABN?

There are some documents that must be available with your business before applying for an ABN registration and they are a must when applying for an ABN . We have listed those documents and things that you must prepare:

1: Australian Company Number (ACN), Director ID, and MyGovID

Any Company or Business that is based or providing services or products in Australia must register themselves with the Australian Securities and Investments Commission (ASIC) even before they apply for an ABN.

2: Legal Business Name, Main Activities and Location/s of the Business

You must disclose the legitimate name of the Business while applying for an ABN; also you must disclose the main activities of your business and also the permanent location or locations if you have business in multiple locations.

3: Tax File Number

Having your Tax File Number (TFN) can help you in getting the ABN for your business much faster. If you are aged 18 years or older and you do not provide relevant Tax Files, then you might face problems in getting an ABN.

4: Contact Details and Business Associates

You must mention a specific contact that can be contacted during issues and problems related to your business and ABN. You can also choose someone reputed as “Taxwin” or any Tax or BAS Agents in Sydney who can respond on your behalf. You can provide their complete contact details for contact.

5: Timeframe when you need the ABN

While applying for an ABN, you must mention the date or time frame when you need your ABN so that you can begin your business. Once that is mentioned, keep in mind that the date shall not be more than 6 months.