If you are an independent contractor it is a requirement that you obtain an ABN. This is because independent contractors essentially work as a separate business. To be an independent contractor, rather than an employee, differing requirements must be met. For example, contractors must provide their own equipment/tools, be paid on an invoice based method and organise their own employee benefits.
Thus, in the ABN application form at the ‘What is the nature of your activity?’ question, contractor’s must select ‘In the form of a business’.
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Updated — Aug 30, 2018