If you have questions about how to apply for a Tax File Number (TFN) or how to apply for a ABN number (Australian Business Number), then you have come to the right place. Here at Tim Nash & Associates, you can find out more about these two tax numbers.
These are not the same numbers, and they can sometimes become confused. That is why you want to know the difference. Read on to discover what these numbers mean and how they are used.
First, there is the ABN, or Australian Business Number. What exactly is it?
It is a number that takes the place of your business name when dealing with government departments. It’s used by many more departments than just the Australian Tax Office (ATO). The purpose is to give your business a unique number that can’t be confused with any other business.
There is no cost to apply for a ABN number. However, you will need to know the appropriate business structure under which to file. That is where having an accountant can help you. Depending on your business structure, you will be registered as a sole trader, a partnership, or a company.
The tax implications when you apply for a ABN number are different for each one. You can end up paying more taxes than you need if you apply for a ABN number under the wrong business structure. That is why is advisable to consult an accountant prior to registering for this very important number.
The next important number to discuss is the TFN, or Tax File Number. When you apply for a Tax File Number, it allows you to file your taxes with the Australian Tax Office (ATO). The TFN is a unique number that identifies you on all correspondence with the ATO. It is also used when lodging a tax return.
It is free to apply for a Tax File Number. Again, it is important to properly file the registration and understand the consequences of the business structure.
That is why it is advisable to consult an accountant before you apply for a Tax File Number. They will be able to advise you to implement registration of these numbers during the course of business or personal activities that affect your taxes.
While registering these numbers is free, it can cost you later on if filed improperly. If you would like to obtain assitance for properly filing these numbers, then give us a call today. Your accountant can help you apply for a ABN number and/or apply for a Tax File Number. You’ll feel better knowing it’s done right the first time.