An ABN is not compulsory and not everyone is entitled to an ABN. The following entities will need an ABN to comply with other tax obligations:
- Businesses with GST turnover of $75,000 or more must register for GST and need an ABN to do this
- Non-profit organisations with GST turnover of $150,000 or more must register for GST and need an ABN to do this
- Entities seeking to be endorsed as a deductible gift recipient need an ABN to obtain that status
- Charities seeking exemption from income tax need an ABN.
Other eligible entities may choose to register for an ABN:
- Companies registered under the Corporations Law
- Business entities carrying on an enterprise
- Trustees of self-managed superannuation funds should obtain an ABN for the fund.
If an entity makes supplies of goods or services to a business, the supplier entity generally needs to quote an ABN. If the supplier does not quote an ABN, the payer may need to withhold tax from the payment.
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