Definition
An ABN, or Australian Business Number, is an 11-digit number that identifies a business to the Australian government and other businesses. It is issued free by the Australian Business Register. Businesses quote their ABN on invoices, and it must appear on tax invoices issued by businesses registered for GST.
Also called: Australian Business Number
ABN in practice
Having an ABN is not the same as being registered for GST. Businesses register for GST separately once turnover reaches the registration threshold, or voluntarily before that. Only GST-registered businesses can issue tax invoices that charge GST.
If a supplier does not quote an ABN on its invoice, a business paying it may be required to withhold tax from the payment at the top marginal rate and send it to the Australian Taxation Office. Quoting your ABN avoids that.
Anyone can check an ABN, and whether it is registered for GST, using the free ABN Lookup service.
Example
A Melbourne graphic designer registered for GST issues a tax invoice for $1,100 showing her ABN, $1,000 for the work, and $100 GST.
Frequently Asked Questions
Do I need an ABN to send an invoice in Australia?
If you are carrying on a business, yes in practice. Without an ABN on your invoice, business clients may have to withhold a large share of your payment for tax.
Does an ABN mean I am registered for GST?
No. GST registration is separate. Only charge GST and label invoices "Tax invoice" if your ABN is registered for GST.
Related terms
- Tax ID A tax ID is the number a tax authority assigns to a business for reporting and collecting taxes.
- GST GST (goods and services tax) is a broad consumption tax applied to most goods and services, functioning like VAT.
- Tax invoice A tax invoice is an invoice that meets the legal requirements for the buyer to claim a tax credit, typically under a VAT or GST system.
- Withholding tax Withholding tax is an amount a client deducts from an invoice payment and pays directly to the tax authority on the supplier's behalf.
- No ABN withholding No ABN withholding is an Australian rule requiring a business to withhold 47 percent of a payment to a supplier that does not quote an Australian Business Number on its invoice or other documents.
- BAS A BAS (Business Activity Statement) is the form Australian businesses registered for GST lodge with the Australian Taxation Office to report and pay GST, PAYG withholding, PAYG instalments, and other taxes.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.