Australian Business Number (ABN)

Do I need to have ABN?

Although most students do not need it to work in Australia, ABN can be very useful for self employer workers (for example architects, IT specialists, baby sitters, house cleanings or labours).

Most of the times it is the employer who asks you to work either under TFN or under ABN. We always recommend our students to apply for both these identification numbers after their arrival to Australia as the applications are free of charge and you will be able to provide your employer with the one that suits him better.

You can find at www.ato.gov.au all necessary information, in which cases you must have an ABN and ABN of what type.

 

What are the advantages of working under ABN conditions?

  • Get paid according to your tasks, not according the number of hours you have worked
  • Have more possibilities to deduct taxes, which you have to pay at the end of Australian financial year (for example phone bills, costs of keeping an Australian bank account etc.)

Remember if you are working under ABN you must declare all your income at the end of the financial year. The taxation office will analyse the data and they will inform if you should pay taxes on the top of your gross profit.

 

How can I apply for an ABN?

As the submission of and application for ABN is more difficult than the application for a TFN, we can always give you some advice. However, the best thing to do in this matter is to contact Australian Taxation Office (ATO). For more information, visit www.abr.gov.au.

Don't forget that you can apply for an ABN only if you already have a Tax File Number.

 

 



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