What is the Australia Business Number? Why it’s Relevant for Australia PR Visa Holders?
When we talk about business migration to Australia, then it would be unjustified not to mention the importance of Australia Business Number (ABN). The majority of investors or high net worth individuals who dream of investing in Australia via Australia PR visa must understand the ins and outs of the process and what it actually takes to be an entrepreneur in Down Under.
In a nutshell, Australia Business Number (ABN) is a unique 11-digit identification number that allows business professionals to set up or manage a business in Australia. The number also makes it easier for them to interact with Australian government authorities-says Australian Taxation Office (ATO). The number is required by business owners only, and not by employees or people using resources of an employer to conduct business in Australia.
Issued by Australia Business Registrar (ABR), the number helps entrepreneurs identify their business with the Australian government as well as its community. An ABN cannot be replaced with your tax file number; however, it can be used for various tax and business purposes.
Who Needs an ABN?
Not everyone needs to apply for an ABN, but only those operating an enterprise in Australia.
With an ABN, you are entitled to do the following:
· confirm your business identity to others when ordering and invoicing
· avoid Pay as You Go (PAYG) tax on payments you receive
· claim Goods and Services Tax (GST) credits
· claim energy grants credits
· obtain an Australian domain name.
· Manage an infrastructure for your business
· Avail for rescue aids for your business in case of any disaster
How to Apply for an ABN?
Below mentioned are the ways through which an ABN can be applied:
· Australian Business Register official website
· Paper application
· Tax agents
There is no need to pay any fee, in case of independent application. However, if any tax agent is involved, then you are required to pay professional charges for the services taken.
The Australian Business Number is generated immediately, provided you have submitted complete and correct information. However, any mistake or lack of information may extend the process of your application for up to 20 days.
What Else You Should Know About Australia Business Number?
It’s worth mentioning that people holding ABNs have different tax and superannuation regulations. This includes declaring income, GST registration, and contribution to their own superannuation funds. ABN holders always keep their numbers updated on a regular basis as these numbers are required by government agencies to cater to the needs of demographically targeted communities in Australia. The number also allows entrepreneurs to connect with various government departments and agencies.
Business owners with Australia PR visa must note that all your ABN related details can be found in Australian Business Registrar. In case, there is a change in any of your details, make sure you inform at ABR within 28 days of the change. The ABR has complete authority to cancel your ABN in case you fail the meet the basic requirements of an ABR holder.
