Whether a sole trader will require an ABN depends on your personal circumstance.
If you are a sole trader
Some questions to consider include:
- Is the activity being undertaken for commercial reasons?
- Is your main intention, purpose or prospect to make a profit?
- Do you regularly and repeatedly undertake your activity?
- Is your activity planned, organised and carried out in a businesslike manner?
If you have answered YES to most of these questions, you will most likely be required to obtain an ABN to carry out your activity.
If you are a company
Most registered companies in Australia will be required to register for an ABN if they are carrying out business activities. This includes, but is not limited to:
- Handling invoices;
- Opening a business bank account;
- Paying employee salaries
Amongst other things
Furthermore, entities looking to register business names must also have a valid and active ABN.
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Updated — Mar 13, 2019