An Australian Company Number is a unique eleven-digit number issued for publication in the Australian Business Register (ABR). The ABR, in turn, is administered by the Australian Tax Office (ATO). Registration brings a number of benefits, but the main reason is easier identification and better interaction between businesses and government agencies. The Australian Business Number also allows for better communication between different operating entities.
Although having an Australian business number is not required by law, most Australians choose to apply for one because of the numerous benefits it offers. BAS Agent in Australia
Withholding taxes
When a business operates without a number, other organizations and companies may collect a 46.5% withholding tax on all transactions to settle their liabilities to the Australian Taxation Office (ATO). By providing a unique identification number on all documentation, withholding tax is waived and a business can independently register for PAYG (Pay as you Go) taxes.
Tax registration and credits
With an Australian company number, businesses can apply for registration for PAYG and GST (Goods and Services Tax). There are also a number of important tax credits that can be applied for (such as fuel tax credits) that help businesses save money. These credits can only be claimed if a business has a unique identification number.
Activity Statements
When GST is filed or reclaimed, businesses must complete a Business Activity Statement (BAS). A BAS will only be issued if you or your business has a valid identification. BAS Services in Australia
Simpler business transactions
By providing a unique identifier on invoices and purchase order forms, other businesses can more easily conduct transactions with you.
Build trust
When other businesses see an Australian business number on your records, your own reputation becomes more credible. This helps your business build trust with other businesses, which can ultimately lead to a higher number of transactions and sustained profitability.
Show Intent
When you secure your own number, you show other businesses that you take your business seriously, and that means they will also treat your business with the respect it deserves. In order to obtain a phone number, certain government requirements must be met. By meeting these requirements, you signal your intent in the business world for all to see.
Encouraging commerce
Other businesses have also signaled their intention to be a reputable business by applying for their own Australian company number. If you have an Australian company number yourself, these companies will be much more likely to consider your products and services.
