Australian Business Owners: Understanding the Australian Business Registry is a Must!
If you’re looking to buy a business in Australia, you may have heard of an Australian Business Number (ABN), which is simply a unique identifying number that is issued to all businesses registered in the Australian Business Registry (ABR).
The ABR
The ABR, which was established in 1999 by A New Tax System Act, is a database of information provided by businesses and other entities when they register for an ABN.
The main objective of the ABR is to make it easier for businesses and all levels of government to interact using the ABN as a unique identifier. These benefits include:
• More efficient communications with government entities
• Faster, even cheaper business interactions with government entities
• Seamless transactions with a variety of government agencies
Likewise, because the ABR can be accessed immediately via the telephone or electronically, access to ABR data and transactions will further streamline the way an entity does business with other entities, allowing it to check and verify information such as the goods and services tax (GST) registration status of other businesses for ordering and invoicing.
This efficient system will also allow an entity to register for an ABN and other tax obligations such as GST and pay as you go (PAYG), and transmit any updated business details to government agencies that access the ABR, making it a solid resource for business owners in Australia.
Applying for an ABN
You can apply for an ABN for your business online.
The steps you will need to complete include:
1) Select or Apply for ABN
2) Choose either NEW or RESUME APPLICATION
3) Input reference number
4) Create a password
5) Complete application questionnaire
6) Complete declaration
7) Submit application
The ABN application
You will need to complete all fields of the online application for it to be submitted. In the event you are unsure of certain information, you can simply click on the “?” button, which will assist you with further information or answer any questions you may have as you work to complete the application.
For ABN’s and tax file number (TFN) registrations, you have the option of saving the application as you work on it and returning to it later to complete it and submit it. If you choose to do this, you will be given a reference number and be able to create a password that will allow you to access the application at a later time.
Additionally, you have the option of printing the application once complete. You will want to do this so that you have a copy of the application in its entirety, in the event you need to refer to it later.
Changing your ABN
Australian legislation requires that the Registrar must be notified within 28 days when a change to the ABN details occurs. In all cases Proof of identity (POI) must be established before any updates to an ABN record is made.
Only the following details can be changed on the Australian Business Register (ABR):
• Names
• Addresses
• Authorized Details
• Business Details
Such changes can be made to your ABN online via the Internet using the ABR or through the www.business.gov.au website. Additionally, you can make these changes via fax, phone or by submitting a Change of registration details form or a signed letter containing the necessary information to make the change.
Canceling your ABN
Keep in mind that if your Australian business is sold, ceases to exist “is no longer carried on in Australia or not making supplies that are connected with Australia,” you will need to cancel your ABN.
You can do this by applying to the Registrar for cancellation of an Australian business number (ABN) in a form approved by the Registrar. Currently, the approved forms include those “electronically lodged via the Internet,” a cancellation form (NAT 2955), or a written request from the entity.
The entity may include any of the following:
An individual
A body corporate
A corporation sole
A body politic
A partnership
Any other unincorporated association or body of persons (excludes non-entity joint ventures)
A trust or A superannuation fund
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