More Info on Australian Local Businesses

Posted by on Dec 7, 2018 in Business | Comments Off on More Info on Australian Local Businesses

An Australian Business Number is a unique eleven-digit number issued for publication on the Australian Business Register (ABR). The ABR, in turn, is operated by the Australian Tax Office (ATO). Registration has a number of distinct benefits but the principle factor behind them allows for easier identification and improved interaction when businesses liaise with Governmental bodies. The Australian Business Number also allows for improved communication between different operational entities.

Although there are no legal requirements to possess an Australian Business Number, most Australians choose to apply for them because of the numerous benefits that they offer.

Withholding Taxes

If a business operates without a number, other organisations and businesses can apply a withholding tax of 46.5% to all transactions made as a means of recouping liabilities to the Australian Tax Office (ATO). By providing unique identification on all documentation, withholding taxes are waived and a business can register for PAYG (Pay as you Go) taxes independently.

Tax Registration and Credits

By possessing an Australian Business number, organisations can apply for PAYG and GST (Goods and Services Tax) registration. Additionally, there are a number of important tax credits that can be claimed (such as Fuel Tax Credits) which help businesses save money. Credits can only be claimed if a business has a unique identification number.

Activity Statements

When GST is declared or claimed back, businesses are required to complete a Business Activity Statement (BAS). A BAS will only be issued if you, or your business, have valid identification in place.

Easier Business Transactions

By displaying unique identification on invoices and order forms, other entities will be able to carry out transactions with you more easily.

Building Trust

When other companies see an Australian Business Number displayed on your documentation, your own reputation will become more credible. It will help your organisation to build levels of trust with other companies and this can ultimately result in an increased number of transactions and sustained profitability.

Showing Intent

Secure your own number, and you will be showing other organisations that you take your business seriously and this means that they will also treat your operation with the respect that it deserves. To obtain a number, there are certain federal eligibility requirements that have to be met. By meeting those requirements, your signal of intent within the business world is clear for all to see.

Encouraging Trade

Other business will have also signaled their intent as serious entities by applying for their own Australian Business Number. By having an Australian Business Number yourself, those businesses will be much more likely to consider your products and services.