Instructions and form for individuals (sole traders)

ABN registration for

individuals (sole traders)

Other ways you can apply

n online at www.abr.gov.au
n through your tax agent

NAT 293804.2008

Is this the right form for you?

See inside front cover.

Is this the right form for you?

Use this application to register for:
n an Australian business number (ABN)
n goods and services tax (GST)
n fuel tax credits
n pay as you go (PAYG) withholding
n fringe benefits tax (FBT)
n luxury car tax (LCT), and
n wine equalisation tax (WET).
Dont use this application if you:
n represent an entity such as a company, partnership, trust
or other organisation you need ABN registration for
companies, partnerships, trusts and other organisations
(NAT2939). Phone 1300720092 to order a copy
n represent a superannuation entity you need ABN
registration for superannuation entities (NAT2944).
Phone1300720092 to order a copy
n represent a government entity you need ABN
registration for government organisations (NAT2946)
phone 132866 between 8.00am and 6.00pm,
Mondayto Friday, to get the correct form
n have an ABN and want to add another registration
(forexample, GST) or need to change details
phone132866 between 8.00am and 6.00pm,
Mondayto Friday.

Our commitment to you

We are committed to providing you with advice and information

you can rely on.
We make every effort to ensure that our advice and information
is correct. If you follow advice in this publication and it turns out
to be incorrect, or it is misleading and you make a mistake as a
result, we must still apply the law correctly. If that means you
owe us money, we must ask you to pay it. However, we will not
charge you a penalty or interest if you acted reasonably and in
good faith.
If you make an honest mistake when you try to follow our advice
and you owe us money as a result, we will not charge you a
penalty. However, we will ask you to pay the money, and we
may also charge you interest.
If correcting the mistake means we owe you money, we will pay
it to you. We will also pay you any interest you are entitled to.
You are protected under GST law if you have acted on any GST
advice in this publication. If you have relied on GST advice in this
publication and that advice later changes, you will not have to
pay any extra GST for the period up to the date of the change.
Similarly, you will not have to pay any penalty or interest.
If you feel this publication does not fully cover your
circumstances, please seek help from the Tax Office or a
professional adviser.
The information in this publication is current at April2008.
We regularly revise our publications to take account of any
changes to the law, so make sure that you have the latest
information. If you are unsure, you can check for a more recent
version on our website at www.ato.gov.au or contact us.

PRIVACY

We are authorised by the tax laws, including the A New Tax

System (Australian Business Number) Act 1999, to ask for
information on this application. We need this information to
helpus administer those laws.
For more information about this application and your privacy,
see The Australian Business Register and your privacy on
page18.
If you need more information about how the tax laws protect
personal information, or you have any concerns about how
theTax Office handles personal information, phone 132861
between 8.00am and 6.00pm, Monday to Friday.

Commonwealth of Australia 2008

Published by

This work is copyright. Apart from any use as permitted under the Copyright Act 1968,
no part may be reproduced by any process without prior written permission from the
Commonwealth. Requests and inquiries concerning reproduction and rights should be
addressed to the Commonwealth Copyright Administration, AttorneyGenerals
Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at
http://www.ag.gov.au/cca

Australian Taxation Office

Canberra
April 2008
JS 10194

Contents
INTRODUCTION

About the ABN

Are you entitled to an ABN?

How to apply

Proof of identity

How to complete the form

THE AUSTRALIAN BUSINESS

REGISTER AND YOUR PRIVACY

18

Information available to the public

18

Your privacy

18

Information not available to the public

19

Government agencies givenABRinformation

19

Tax file numbers

19

HOW TO COMPLETE
THE APPLICATION FORM

What to do if you are concerned aboutprivacy issues

19

Section A: Sole trader information

USEFUL PRODUCTS ANDSERVICES

20

Section B: Phone and address details

Small business

20

Section C: Online (internet) services

Individuals

20

Section D: Contact details

Online services

20

Section E: Reason for application

Other services

21

Section F: Business activity details

MORE INFORMATION

22

Section G: Taxation details

12

Internet

22

Section H: Goods and services tax (GST)

13

Phone

22

Section I: Fuel tax credits

15

Fax

22

Section J: Pay as you go (PAYG) withholding

15

Free seminars

22

Section K: Financial account details

16

Advisory visits

22

Section L: Declaration

17

Other services

22

Lodging your application

17

ABN registration for individuals (sole traders)

INTRODUCTION
ABOUT THE ABN

The Australian business number (ABN) is a public number that

gives businesses in Australia a single identification number to
use when dealing with a range of government departments
andagencies.
An ABN does not replace your tax file number.
You normally need an ABN to register for:
n goods and services tax
n fuel tax credits, and
n pay as you go withholding.
When you receive your ABN, some of your business details are
placed on the Australian Business Register. This register is
administered by the Australian Business Registrar, who is also
the Commissioner of Taxation. See The Australian Business
Register and your privacy on page 18 for further details.

ARE YOU ENTITLED TO AN ABN?

You are entitled to an ABN if you are carrying on an enterprise

inAustralia (see checklist below).
You are NOT ENTITLED to an ABN if any of the following
statements are true:
Your activity is carried out as an employee or in
connection with earning payment as a company
director, office holder or under a labour hire
arrangement.
An employee is a person who receives a salary or
wagein return for work or services rendered.
You are not considered an employee for ABN
registration purposes if you have your own business
andyou receive a salary or wage from an activity
relatedto your business.
Your activity is a private recreational pursuit or hobby.
Your activity is conducted as a member of a local
government body, for example, as an elected member
of a city, town or shire council.
You ARE ENTITLED to an ABN if all of the following
statements are true:
Your activity is carried out in the:
n form of a business
n nature of trade, or
n form of a regular or continuous grant of a lease,
licence or interest in property.
Your activity is carried out in Australia or you make
supplies that are connected with Australia.
You have a reasonable expectation that a profit will
bemade from your activity.



ABN registration for individuals (sole traders)

INTRODUCTION

HOW TO APPLY

You can apply for an ABN and the other registrations listed
onpage2:
n online at www.abr.gov.au
n through your tax agent, or
n by using the application form and instructions in this booklet.
When you apply online, you will receive your ABN
immediately if your application is straightforward.

PROOF OF IDENTITY

You must provide proof of your identity with this application.

Youcan do this by:
n quoting your tax file number (TFN) at question 4 on the form,
or
n providing documents that prove your identity for registration
purposes.

If you have a tax file number

You can prove your identity by quoting your TFN, because you
provided proof of your identity when you applied for your TFN.
We are authorised by the A New Tax System (Australian
Business Number) Act 1999 to ask you to provide your TFN
onthis application. You are not required by law to provide
yourTFN. However, quoting your TFN reduces the risk of
administrative errors that could delay the processing of your
application.
If you choose not to provide your TFN:
n check you have completed question 1 on the form
n provide your residential address with your application: print
your name and residential address on a separate sheet of
paper and include with your application.

If you do not have a tax file number

If you do not have a TFN you can:

n apply for one, or
n include documents with your ABN application that prove your
identity.

How to apply for a TFN

If you choose to apply for a TFN we recommend you do it

before registering for an ABN. This will speed up processing
ofyour ABN application.
Complete and lodge one of the following application forms:
n Australian residents: Tax file number application or enquiry
for an individual (NAT 1432).
n Nonresidents: Tax file number application or enquiry for
individuals living outside Australia (NAT 2628). For more
information on residency see question 21 on page 12 of
theseinstructions.
n Permanent migrants and temporary visitors to Australia:
Ifyou have the right to work or stay permanently in Australia
you can apply online for a TFN any time after you enter
Australia. When you apply online you do not need
proofofidentity documents but you will need to provide
personal and travel document details instead.
To apply online go to our website and select For individuals
on the left side of the screen, Apply for a tax file number,
then Online individual tax file number (TFN) registration.
Only permanent migrants and temporary visitors to
Australia can apply for a TFN online. All other applications
are done on paper.

You can order a TFN application form by phoning

1300720092. For more information about TFNs see our
fact sheet Tax file numbers (NAT1753) which is available
onour website.

ABN registration for individuals (sole traders)

INTRODUCTION

Documents that prove your identity

If you choose not to apply for a TFN you will need to include
proofofidentity documents with your ABN application. The
documents you need to provide are listed on the following
TFNapplication forms:
n Australian residents or permanent migrants and
temporary visitors to Australia: Tax file number
applicationor enquiry for an individual (NAT 1432).
n Nonresidents: Tax file number application or enquiry for
individuals living outside Australia (NAT 2628). For more
information on residency see question 21 on page 12 of
theseinstructions.
We may contact you for further information.

HOW TO COMPLETE THE FORM

n Refer

to the instructions where a question shows a message

like this:
See instructions page 5
n Initial the form where directed.
n Print clearly, using a black pen.
n Use BLOCK LETTERS and print one character per box.

S M

n Place

S T

X in all applicable boxes.

n Do

not use pins or staples to attach any extra details you

mayprovide.

If you are unsure or need help completing your application,

seeMore information on page 22.

Permanent migrants and temporary visitors to Australia

with the right to work: If you are unable to provide the
documentation required, you have the option of applying for
aTFN online using your personal details and travel documents
to prove your identity. You can then quote your TFN to prove
your identity for this application form. See How to apply for
aTFN, on the previous page.



ABN registration for individuals (sole traders)

HOW TO COMPLETE THE

APPLICATION FORM
SECTION A: SOLE TRADER INFORMATION

This section collects information about your identity. See The

Australian Business Register and your privacy on page 18 for
details about the information that will be publicly available on
theAustralian Business Register (ABR).

SECTION B: PHONE AND ADDRESS DETAILS

Question 5
What are your contact phone numbers?
No additional instructions provided.

Question 1
What is your name?

Question 6
Where is your main business location or address?

No additional instructions provided.

This is the street address of the business and the place where
the main activity takes place.

Question 2
What is your trading name?

If there is no physical place of business then the place where

records are kept is considered to be the main place of business.

Most businesses will need to register their business or

tradingname.
You can carry on a business in your own name without
registering a trading name if you dont change or add anything
to your name. For example, if your name is John Smith, you
dont have to register a name to trade as J Smith or John
Smith. But ifyou trade as John Smith Landscaping, you need
toregister thename with the relevant government body in
yourstate.
When you apply for an ABN you are asked to supply
the trading name of your business. Trading names should
be registered with the relevant government body in your
state. Make sure you do this before you apply for an ABN.
Visit www.business.gov.au for more information.

Question 3
Do you have more than one trading name?

Provide a separate sheet of paper listing your other trading

names. Print your own name on the top of each separate sheet
of paper you include with your application.

Question 7
What is your postal address for service of
noticesand correspondence?
No additional instructions provided

Question 8
What is your email address for correspondence?

Where possible, we like to do business with you online, over

theinternet. If you would like to receive correspondence by
email, provide an email address here.
You must provide an email address if you:
n register for GST and your GST turnover is $20 million or more
n are an importer, intending to defer the payment of GST on
imported goods, or
n want to maintain your details in the Australian Business
Register over the internet.
Provide only one email address, for example:

N E

S @ A R T

C O M

A U

Trading names should be registered with the relevant

government body in your state. Make sure you do this
before you apply for an ABN (see question 2).

Question 4
Do you have a tax file number?

If you do not have a tax file number (TFN), you will need to
provide documents that prove your identity, see Proof of
identity on page 5.
If you choose not to provide your TFN, you must provide
yourresidential address. Print your name and residential
address on a separate sheet of paper and include it with
yourapplication form.

ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

SECTION C: ONLINE (INTERNET) SERVICES

SECTION D: CONTACT DETAILS

Question 9
Do you wish to register for access to the
TaxOffices online services for business?

Question 10
Give details of any person (other than yourself) you
wish to nominate as an authorised contact person.

You must answer YES to this question if you:

n register for GST and your GST turnover is $20 million or more
(activity statements are required by legislation to be lodged
electronically)
n are an importer, intending to defer the payment of GST on
imported goods, or
n want to maintain your details on the Australian Business
Register over the internet.
For other sole traders the decision to use our online services
isoptional.
To access many of our online services you will need a free ATO
digital certificate so we can ensure we maintain your privacy.
If you answer YES to this question, we will send you three
separate items:
n an email
n a password and PIN letter, and
n an Online services setup CDROM.
The information contained in these items allows you to install
your ATO digital certificate.

The person nominated as an authorised contact must be able

to deal with any issues that may arise regarding your Australian
business number or business accounts. This person must be
authorised to make changes or update information on your
behalf, for example, your tax agent.

Preferred language

If an authorised contact person has difficulty communicating

inEnglish, you can indicate their preferred language. If an
authorised contact person is hearing impaired and wants to
usethe TTY service, print TTY as their preferred language.

Question 11
If your tax agent is your authorised contact,
providetheir registration number.
No additional instructions provided.

Question 12
Do you want to nominate other contact people?
No additional instructions provided.

SECTION E: REASON FOR APPLICATION

See Useful products and services on page 20 for
more information.

Question 13
Why are you applying for an ABN?

The answer to this question will help us establish whether you

are starting a new business or not. It will also help verify details
held in the Australian Business Register.
If you already have an ABN, phone us to see if you
need to complete this application. See page 22.



ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

SECTION F: BUSINESS ACTIVITY DETAILS

Question 14
From what date do you require an ABN?

This date should be when you first had, or will have,

transactions in setting up the business, and would generally
bebefore the day you open the doors. Set up transactions
include events such as leasing premises, buying in stock
andprinting business cards.

Question 15
If you intend for your business activity to be
forlessthan three months, on what date do
youexpect to cease business?
No additional instructions provided.

Question 16
Do you have more than one business
location in Australia?
No additional instructions provided.

Question 17
In which states or territories do
you have business locations?
No additional instructions provided.

Question 18
What is the main industry that you operate in?
Following are examples of activities associated with
eachindustry.

Agriculture

Growing of crops (for example, wheat and canola growing),

vegetable growing (for example, outdoor vegetable or under
cover growing of herbs), breeding and farming of livestock (for
example, dairy cattle farming or beef cattle feedlot operation),
services to agriculture (for example, shearing, mustering).

Forestry

Forestry and logging, reforestation services, forest nursery,

timber plantation operation, firewood collection.

Fishing

Commercial fishing (for example, prawn trawling, line fishing,

ocean or freshwater fishing).

Aquaculture

Mining

Mining minerals (includes milling, dressing and beneficiation of

ores), oil and gas extraction, exploration for minerals, petroleum
and natural gas, contract mining services.

Manufacturing

Manufacture of goods, including parts and components (for

example, food, beverage, textile, clothing, footwear and leather,
wood and paper products, printing, reproduction of recorded
media, petroleum, coal, chemical and associated products,
machinery and equipment).

Electricity, gas, water and waste services

Electricity and gas supply (for example, generation, transmission

and distribution of electricity, on selling of electricity via power
distribution system operated by others, gas distribution through
the mains system), water supply system operation, operating
sewerage and drainage systems, sewerage treatment plant
operation, waste collection, treatment and disposal services.

Construction

construction construction of residential and

commercial buildings, civil engineering construction (for
example, roads, bridges, telecommunications towers and
infrastructure)
n construction trade services installation trade services
(forexample, kitchens installing, electrical services, plumbing
services, air conditioning and heating), concreting services,
roofing services, bricklaying services, carpentry services,
sitepreparation services (for example, earthmoving services,
demolition services and bobcat trench digging).
n general

Wholesale trade

Purchasing and onselling new or used goods to other

businesses (for example, selling meat purchased from other
businesses to butchers, selling mobile phones and other
telecommunications goods to retailers, selling stationery
tonewsagents, selling of goods on commission such as
auctioningof livestock).

Retail trade

Purchasing and onselling new or used goods mainly to the

general public (for example, grocery store, supermarket,
furniture retailing, florist, antique shop, buying and selling of
goods via internet to the general public).

Accommodation and food services

Hotels, motels, pubs, takeaways, taverns and bars, cafes and

restaurants, clubs (hospitality).

Controlled farming of fish, molluscs and crustaceans (for

example, longline mussel, caged salmon or pond prawn farming).

ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

Transport, postal and warehousing

Transporting of passengers (including tour bus, taxi owner or

operator, taxi driving for owner or operator), livestock and/or
goods by road, rail, water or air, services to transport (for
example, terminal facilities for road and freight, freight
forwarding services, customs agency service, warehousing
andstorage of goods).

Information media and telecommunications

Publishing and broadcasting (including internet, motion picture

and sound recording, mobile telecommunications network
operation, internet service providers, pay television broadcasting
network operation, web search portals and data processing
services, library and other information services).

Financial and insurance services

Provision of finance (for example, banks and credit unions),

investing own money in financial assets (for example, shares,
securities, bonds and bills), provision of services to lenders,
borrowers and investors (for example, commodity futures
broking, stock broking, mortgage broking, financial advisory
service), insurance and superannuation funds, provision of
services to insurance businesses (for example, insurance
agencyservice, insurance broking service).

Rental, hiring and real estate services

Rental and hiring (for example, machinery and equipment

andother goods), real estate services (for example, property
operators and developers, real estate agents).

Professional, scientific and technical services

Scientific research services, architectural, engineering and

technical services, legal and accounting services, advertising,
market research and statistics, management and consulting,
veterinary services, other professional, scientific and technical
services (for example, photography), computer systems design
and related services (for example, web design consulting).

Administrative and support services

Administrative services (for example, office administration,

employment and travel agencies), office cleaning, pest control
and other support (for example, gardening and packaging).

Public administration and safety

Government administration (for example, Australian, state

andlocal government administration, justice, member of
parliament), defence forces, public order and safety services
(forexample, police, investigation and security, fire protection
and emergency services, correctional and detention services)
and regulatory services.

10

Education and training

Preschool education, school education (including primary,

secondary and special school), tertiary education, adult,
community and other education (for example, arts or sports
education, continuing education).

Health care and social assistance

Health services (for example, GPs, hospitals and nursing

homes, retirement villages, medical and dental services),
community services (for example, child care, soup kitchens,
welfare counselling and aged care services).

Arts and recreation services

Heritage activities (for example, museums, parks, and gardens

operations), creative and performing arts (for example, dance
company, songwriter, musician, theatrical company), sport,
recreation and gambling activities (for example, swimming pool
operation, sports stadium, fitness and leisure centre operation).

Other services

Repair and maintenance (for example, repair of cars, machinery

and equipment), personal services (for example, hairdressing
services, diet and weight reduction centre operation, funeral
directors, church operation, business and professional
associations, community interest groups).

Question 19
Describe the main activity from which you derive
themajority of your business income.

Based on your answer to question 18, describe the main goods

produced or main services provided in generating the majority of
your business income.
For example, if you are an internet service provider, place an X
in the box against the Information media and
telecommunications industry description at question 18 and
atthis question answer INTERNET SERVICE PROVIDER.
Following are examples for specific industries.

Construction

construction if you are in the construction industry,

provide details of the types of construction activities that are
being carried out (for example, house building, office
construction, telecommunications infrastructure construction,
roadworks)
n construction trade services if you are in the construction
trade services industry, provide details of the types of
construction activities that are being carried out (for example,
carpentry services, bricklaying services, concreting services,
fence erecting service, plumbing services, earthmoving
services).
n general

ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

Wholesale or retail industries

Wholesaling is the purchasing and onselling of new or used

goods to other businesses (for example, selling meat purchased
from other businesses to butchers, selling purchased mobile
phones and other telecommunications goods to retailers, selling
purchased stationery to newsagents, selling of goods on
commission such as auctioning of livestock).
Retailing is the purchasing and onselling of new or used goods
mainly to the general public (for example, grocery store,
supermarket, furniture retailing, florist, antique shop, buying
andselling of goods via internet to the general public).

Education and training

If you provide education, describe the type of education you

provide. Examples include preschool education, combined
primary and secondary school education, technical and further
education, university education, adult education operation,
lecturing in law, dance teacher.

Health care and social assistance

If you provide health or social assistance services, describe

thetype of service provided (for example, dental surgery,
occupational therapy service, general medical practitioner,
chiropractor, welfare counselling services, nursing home, aged
care home).

Manufacturing

If you are in the manufacturing industry, describe the types of

products you manufacture (for example, poultry products
manufacturing, textile weaving, clothing manufacturing, hearing
aids manufacturing, baking of bread on the premises, pesticide
chemicals manufacturing, wine manufacturing). You also need to
provide details of the types of materials used for metal, aluminium,
wood and plastic products manufacturing (for example, steel pipe
manufacturing, aluminium door manufacturing, metal washer
stamping, steel wire extracting, wooden furniture manufacturing,
granite benchtop manufacturing).

Service entities

If you provide services to only one other entity, describe the

services you provide to the other entity (for example, supply staff
to a related entity and pay the wages of the staff, supply
administrative functions to the related entity such as
bookkeeping services and pay the expenses of the entity).

Question 20
Do you operate an agricultural property?
No additional instructions provided.

Agriculture

If you obtain your main income from growing crops or grazing

animals, describe the type of agriculture. Examples include
wheat farming, salmon fish farming in ponds or tanks, vegetable
growing in greenhouses, dairy cattle farming, beef cattle feedlot
farming.
Farming methods include undercover farming, for example,
greenhouses, and onshore and offshore fish farming. If a mixture
of activities are undertaken which contribute similar income, list
all the main activities, for example, grainsheep or grainbeef
farming, sheepbeef cattle farming or apple and pear growing.

Mining

If you are in the mining industry, describe whether the mining

activity involves extraction or exploration for minerals, oil or gas.
Also describe the types of material mined or explored for (for
example, coal mining, oil and gas exploration, gold mining,
silverleadzinc exploration, stone quarrying, gravel and sand
mining).

ABN registration for individuals (sole traders)

11

HOW TO COMPLETE THE APPLICATION FORM

SECTION G: TAXATION DETAILS

The information you provide in this section indicates to us

whether you need to register for other business accounts.

Question 21
Are you a resident of Australia for tax purposes?

The standards we use to determine your residency status are

not the same as those used by the Department of Immigration
and Citizenship or Centrelink. Generally, we consider you to be
an Australian resident for tax purposes if:
n you have always lived in Australia or you have come to
Australia and live here permanently
n you have been in Australia continuously for six months or
more and for most of that time you worked in the one job and
lived at the same place, or
n you have been in Australia for more than half of the financial
year unless your usual home is overseas and you do not
intend to live in Australia.
For detailed information about Australian residency,
visitwww.ato.gov.au
To locate this information select For Individuals,
nonresidents and visitors.

Question 22
Do you want to be registered for any of
thefollowing?
Fringe benefits tax

Employers that provide fringe benefits to their employees or

associates of their employees (typically family members) pay
thistax. Fringe benefits include rights, privileges and services,
for example, a car, a cheap loan or payment of private health
insurance.
If you place X in the box, one of our customer service officers
will contact you.

12

Luxury car tax

If you are registering for GST and intend to sell luxury cars,
place X in this box.
A luxury car is a car with a retail price, including GST, that
exceeds the luxury car tax threshold.
This threshold is the car depreciation limit for income tax
purposes. To find out the current car depreciation limit,
contactus.
A car includes passenger vehicles designed to carry a load of
less than two tonnes and fewer than nine passengers.
Examples include station wagons, four wheel drive vehicles,
light trucks, motor homes and camper vans.
If you are not sure whether this question applies to you,
see More information on page 22.
If you place X in the box, one of our customer service officers
will contact you.

Wine equalisation tax

Wine tax is a valuebased tax that is levied at the wholesale

level. Wine manufacturers, wholesalers and importers collect
thetax and remit it to the Tax Office.
Wine tax applies to the following alcoholic beverages:
n grape wine
n grape wine products such as marsala, vermouth, wine
cocktails and creams
n other fruit wines and vegetable wines
n cider and perry, and
n mead and sake.
If you are not sure whether this question applies to you,
see More information on page 22.
If you place X in the box, one of our customer service officers
will contact you.

ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

Section H: Goods and services tax (GST)

We recommend that you read GST for small business
(NAT3014) if you are unfamiliar with GST. See page 20.

Question 23
Are you required by law to register for GST?
No additional instructions provided.

Question 24
If you are not required to register for GST,
are you volunteering to register?

If you choose to register, you will be expected to stay registered

for 12months. If you apply for cancellation of registration within
12months of being registered, the registration may or may not
be cancelled. Cancellation will depend on your circumstances.

Question 25
What is your date of registration for GST?

If you backdate your registration more than 21 days you may

beliable for:
n failure to register on time penalties
n failure to lodge on time penalties, and
n general interest charge (GIC) on GST owed.

Question 26
What is your GST turnover?

Your GST turnover is the greater of your current and

projectedGST turnovers.

Definitions
Current GST turnover is the value of all supplies made or
likely to be made in the current month plus the previous
11months.
Projected GST turnover is the value of all supplies made
orlikely to be made in the current month plus the next
11months.
When working out your current or projected GST turnover,
exclude the following supplies:
n input taxed supplies
n supplies for no consideration (and that are not taxable
supplies to associates), and
n supplies not in connection with the enterprise,
forexample, private sales.
The value of supplies in both calculations excludes GST.
Projected GST turnover does not include supplies made
orlikely to be made:
n by transfer of capital assets, or
n as a result of ceasing an enterprise or substantially and
permanently reducing the size of the enterprise.
We use GST turnover to determine a number of threshold
events. Turnover thresholds are GST exclusive.
Your GST turnover meets the registration turnover
thresholdif your:
n current GST turnover is at or above the threshold
(unlessyou satisfy us that the projected GST turnover
isbelow the threshold), or
n projected GST turnover is at or above the threshold.
The GST registration turnover threshold is $75,000
(or$150,000 for nonprofit entities).

ABN registration for individuals (sole traders)

13

HOW TO COMPLETE THE APPLICATION FORM

Question 27
How often will you lodge your activity statements?
If your GST turnover is:
n $20 million or more, you must lodge monthly and
electronically

You must select Monthly and provide your email

address at question 8.
n less

than $20 million, you can choose to lodge monthly or

quarterly, or
n expected to be less than $75,000, you can choose to lodge
monthly, quarterly or annually (once a year).
Taxi and limousine drivers and agents for nonresidents
must lodge monthly or quarterly.
If you elect to report GST annually and have other obligations
such as PAYG withholding for employees, you will still need to
report those obligations either monthly or quarterly.

Question 28
Do you intend to account for GST on a cash or
noncash (accruals) basis?
Cash accounting

If you issue or receive an invoice but do not account for the sale
or purchase until the payment is received or paid, you are using
a cash accounting method.
You can choose a cash basis of accounting for GST if:
n your business has an annual turnover of less than $2 million
and is a small business entity
n you are not operating a business but are carrying on an
enterprise with a GST turnover of $2 million or less, or
n you are accounting for your income on a cash basis properly
for income tax purposes.
Refer to www.ato.gov.au to determine if you are a
small business entity.

If you do not meet any of the criteria above and want

toaccount for GST on a cash basis, this may be possible.
You will need to seek permission from us to do so.
SeeMore information on page 22.

Noncash accounting (accruals)

You are accounting for GST on a noncash (accruals) basis

ifyou account for the GST on your sales when you issue
aninvoice or receive any part of the payment, whichever
occursfirst.

Question 29
Do you import goods or services into Australia?

You may be eligible for the Deferred GST on imports scheme,

which allows you to defer payment of GST on imports. To be
inthe scheme, you must be prepared to lodge your activity
statements monthly over the internet.
There are also other requirements to qualify for the Deferred
GST on imports scheme. For further information or to apply
tojoin the scheme phone 1300130915 between 8.00am
and6.00pm, Monday to Friday.

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ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

SECTION I: FUEL TAX CREDITS

Fuel tax credits help reduce your fuel costs by providing a credit
for fuel tax (excise or customs duty) included in the price of fuel.
From 1 July 2008, most fuel used in your business is eligible
forfuel tax credits including fuel used in equipment, tools,
machinery and heavy vehicles (for example, lawn mowers,
chainsaws, brush cutters, backhoes and forklifts).
There are two exceptions:
n fuel used in vehicles of 4.5 tonne gross vehicle mass (GVM)
orless travelling on a public road (such as passenger cars,
small delivery vans or utes), and
n alternative fuels.
Alternative fuels include:
n liquefied petroleum gas (LPG)
n compressed natural gas (CNG)
n liquefied natural gas (LNG)
n ethanol, and
n biodiesel.
Alternative fuels used in vehicles of 4.5 tonne GVM or more
travelling on a public road may be eligible for a fuel grant under
the energy grants credits scheme.
For more information about fuel tax credits or the
energy grants credits scheme, visit www.ato.gov.au or
phone 132866 between 8.00am and 6.00pm, Monday
toFriday.

Question 30
Do you need to register for fuel tax credits?
No additional instructions provided.

Question 31
From what date are you eligible for fuel tax credits?

This is the date you first purchase fuel for a use which is eligible
for fuel tax credits. This date cannot be before the date you
have provided at question 25 (date of GST registration) or
1July2006 (when fuel tax credits commenced).

Question 32
Which fuel do you use in your business activities?
No additional instructions provided.

Question 33
Do you use fuel in a vehicle with a GVM greater
than4.5 tonnes travelling on a public road?

You cannot claim fuel tax credits for fuel used in a vehicle with
aGVM of 4.5 tonnes or less travelling on a public road.

ABN registration for individuals (sole traders)

SECTION J: PAY AS YOU GO (PAYG) WITHHOLDING

About PAYG withholding
Under pay as you go (PAYG) withholding, you may be required
to withhold amounts from payments to employees and others.
You send the withheld amounts to us.
Register for PAYG withholding if you make payments to an
individual, other than yourself, for:
n salary and wages
n returntowork payments
n superannuation income streams or annuity
n employment termination payments
n unused leave
n sickness payments, or
n accident payments.
Other payments that require withholding include payments:
n made under voluntary agreements
n made under labour hire arrangements
n made to suppliers who do not quote their ABN in relation to
asupply they make in the course of their enterprise
n that are specified by regulation, and
n that are personal services income attributed to an individual.

Explanations
n Individual

may be an employee, office holder, director,

pensioner or contractor.
n Voluntary agreement agreement between a payer and
independent contractor (a payee) for the payer to withhold
amounts from payments made to the payee for work and
services. The payee must be an individual who has an
ABN and the payments must not be subject to any other
PAYG withholding.
n Labour hire arrangement an arrangement under which
the individual performs work or services directly for a
client of a labour hire firm (or a client of another entity).
Under these types of arrangements, the worker is not
anemployee of either the labour hire firm or the client.
The labour hire firm is required to withhold amounts from
payments to these workers.
n Payer The business that withholds amounts from the
payments.
Examples of less common types of payments where
withholdingis required are:
n dividend, interest or royalty payments made to nonresidents
n mining and natural resource payments
n payments to religious practitioners, or
n certain payments to foreign residents.
We may contact you after we have received your application
tosee which type of withholding payments you may be making.
See More information on page 22.
15

HOW TO COMPLETE THE APPLICATION FORM

Question 34
Are you required by law to register
forPAYGwithholding?

If you make payments where withholding is required, you

mustregister by answering YES to this question.
Examples of payments where withholding is required
includepayments:
n to employees
n to labour hire workers, or
n of interest, dividends, royalties or fund payments to
nonresidents.
You must:
n register for PAYG withholding before you withhold from
anypayments
n commence withholding from the first payment you make.
The date that withholding commences is the date the first
payment will be made and an amount withheld.

Question 38
How will you provide payment summaries to
yourpayees?

A payment summary is a form you give to each of your payees

(including employees) showing the total amount you paid them
and the total amount you withheld from their payments for the
year. If you choose to report electronically, you may:
n print your own payment summaries, or
n use the Tax Office payment summary forms.
For more information about reporting electronically,
seepage20.

Question 39
Will you pay royalties, dividends or interest to
nonresidents, or are you an investment body that
will pay investment income to Australian residents?
Investment income includes interest and dividends.

If you backdate your PAYG withholding registration

youmay be liable for:
n failure to lodge on time penalties, and
n general interest charge (GIC) on amounts withheld.

Question 35
How many employees do you estimate you will pay?
No additional instructions provided.

There are special annual reporting obligations for these types

ofpayments:
n Investment bodies are required to report all payments of
investment income.
n Other payers only report payments that require an amount to
be withheld, for example, payments to nonresidents.
We may contact you after we have received your application to
discuss the type of reporting obligations you may have in
relation to investment and royalty payments.

Question 36
What amount do you expect to withhold from
payments to your payees each year?

SECTION K: FINANCIAL ACCOUNT DETAILS

Question 37
How will you provide your PAYG withholding
payment summary annual report to the Tax Office?

No additional instructions provided.

No additional instructions provided.

Question 40
What are your financial institution account details
for Tax Office refunds?

No additional instructions provided.

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ABN registration for individuals (sole traders)

HOW TO COMPLETE THE APPLICATION FORM

SECTION L: DECLARATION

LODGING YOUR APPLICATION

In signing the declaration you are stating that:

n you, if you are not the person making the application,
areauthorised by that person to make this application
n you/the applicant is entitled to an ABN, and
n the information provided in the application is accurate and
complete.

Send your completed application, including any attachments,to:

Australian Taxation Office
PO Box 3000
ALBURY NSW 2640

Once you have completed this application, you are required

toread and sign the declaration.

Authorised person

Check that you have signed and dated the declaration. If it is

unsigned, we will return it to you for signing.

Make a copy of your application for your own records

before you send it.

If you are not an authorised person, ensure that you get an

authorised person to sign the declaration.
If you have not verified your entitlement to an ABN, do so before
signing the declaration. See page 1 of the application form.
Penalties may be imposed for making a false
declaration.

ABN registration for individuals (sole traders)

17

THE AUSTRALIAN BUSINESS

REGISTER AND YOUR PRIVACY
We are authorised to collect the information in this application
by one or more of the following Acts:
n A New Tax System (Australian Business Number) Act 1999
n Income Tax Assessment Act 1936
n Taxation Administration Act 1953
n A New Tax System (Goods and Services Tax) Act 1999
n A New Tax System (Wine Equalisation Tax) Act 1999
n A New Tax System (Luxury Car Tax) Act 1999
n Fringe Benefits Tax Assessment Act 1986
n Fuel Tax Act 2006
The information you provide will help us to administer these Acts
and other tax laws.

INFORMATION AVAILABLE TO THE PUBLIC

Some of the information collected in this application will appear

on the Australian Business Register (ABR). Some information on
the ABR is publicly available. This includes:
n ABN
n ABN status (date of effect of the ABN registration)
n entity name
n entity type (such as superannuation fund, company, trust)
n trading name
n state (from the address provided as the main businessaddress)
n postcode (from the address provided as the main
businessaddress)
n GST registration status and date/s of effect (if applicable)
n deductible gift recipient status and date/s of effect (ifapplicable)
n tax concession charity status and date/s of effect (ifapplicable)
n income tax exempt fund status and date of effect (ifapplicable)
n Australian Company Number or Australian Registered Body
Number (if applicable)
n the date of an ABN change if the Registrar has changed
theentitys ABN, and
n the date of ABN cancellation if the Registrar has cancelled
the entitys registration.
This information will allow members of the public to find out
whether:
n they are dealing with registered entities
n those entities are registered for GST
n those entities are endorsed to access charity tax concessions,
and
n gifts made to those entities are tax deductible.

A printout of this information is also available as a certified

extract of the ABR.
If an entity requests a certified copy of its own register details,
this will be provided free of charge. The extract will contain all
ofthe information set out above, plus additional information
including the full address for service of notices, correspondence
and email addresses.
If you request a certified copy of another entitys register details,
you will be charged a fee of $20 for the first page (a standard
certified extract is usually one page), and 10cents for any
subsequent pages. You will be provided with the same
information that is available to the public online (for free) at
www.abr.gov.au
All requests for certified extracts need be in writing and sent to:
The Director, ABN Details
Australian Taxation Office
Locked Bag 9500
VIRGINIA BC QLD 4014
Further information about the ABR can be obtained from
www.abr.gov.au or by phoning 132866 between 8:00am
and6:00pm, Monday to Friday.

YOUR PRIVACY

In exceptional circumstances, you can request that certain

information that would otherwise be made available to the
public, be suppressed. These circumstances include cases
where a person has fears for their safety or that of their family,
inmuch the same way as people can have their details
suppressed from the Electoral Roll.
If you want to apply to the Registrar to withhold some of the
details available to the public about the entity, provide a letter
detailing:
n the information to be suppressed
n a copy of any supporting material, and
n the reasons for the suppression.
You can enclose this information with the application and
mailitto:
The Assistant Registrar
Australian Business Register
PO Box 9977
Newcastle NSW 2300

Some or all of this information may be regularly provided in bulk

to third parties using internet or alternate electronic means.
Afee to cover the administrative costs of providing this
information may be charged to those third parties for this
service.

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ABN registration for individuals (sole traders)

THE AUSTRALIAN BUSINESS REGISTER AND YOUR PRIVACY

INFORMATION NOT AVAILABLE TO THE PUBLIC

Information you supply on this application that will not be

available to the public via the ABR include:
n the name and contact details of authorised contact persons
n tax file numbers
n telephone numbers
n all business activity details (such as staffing and ownership
details)
n all taxation information (such as financial institution account
details for Tax Office refunds, GST details, including GST
turnover), and
n details of individuals and organisations associated with the
entity.

Government agencies
givenABRinformation

Tax file numbers

We are authorised by the A New Tax System (Australian

Business Number) Act 1999 to ask you to provide your tax file
number on this application. We use your tax file number to
correctly identify you. You are not required by law to provide
your TFN. However, quoting your TFN reduces the risk of
administrative errors that could delay the processing of your
application.

What to do if you are concerned

aboutprivacy issues

If you have privacy concerns you can obtain further

informationfrom the Privacy Commissioners website,
www.privacy.gov.au or you can phone the Tax Office
on132866 between 8.00am and 6.00pm, Monday to Friday.

The ABN has been implemented in response to requests from

business for a single number to streamline their interactions
withall levels of government. To help businesses and
government interact more easily, the Registrar may under some
circumstances, disclose information provided by the entity to
other Commonwealth, state, territory and local government
agencies including bodies established by law for a public
purpose or specifically prescribed by regulation. Examples
include Commonwealth and state departments, statutory
agencies, local councils and other authorities such as the
Workplace Authority, the Australian Trade Commission and
thevarious Work Cover organisations.
Details of the government agencies regularly receiving
information from the ABR can be found at www.abr.gov.au
Ifyou need a printed version of this information phone 132866
between 8.00am and 6.00pm, Monday to Friday.

ABN registration for individuals (sole traders)

19

USEFUL PRODUCTS
ANDSERVICES
The Tax Office produces a number of products that may be
useful to your business.

ONLINE SERVICES

SMALL BUSINESS

The ABR is a database of identity information provided

bybusinesses when they register for an ABN. The ABR
makesiteasier for businesses and all levels of government
tointeract using a unique identifier the ABN. The ABR
provides instant online access to ABN details and transactions
at www.abr.gov.au

You can get the following forms and publications from

www.ato.gov.au/business or by phoning 1300 720 092:
n Tax basics for small business (NAT1908) provides an
overview of the tax system for small businesses
n Record keeping for small business (NAT3029) describes
therecords you need to keep and how to keep basic
paperrecords
n GST for small business (NAT 3014)
n Fuel tax credits expanded from 1July2008 (NAT 15231).

INDIVIDUALS

You can order the following forms and publications by

phoning1300 720 092:
n Tax file number application or enquiry for an individual
(NAT1432)
n Tax file number application or enquiry for individuals living
outside Australia (NAT2628)
n Tax file numbers (NAT1753).

Australian Business Register (ABR)

Visit the ABR website to:

n register for an ABN and other tax obligations, such as GST
and PAYG withholding
n access and update your own business details (to update your
ABN details via the ABR you will need to register for a free
digital certificate, go to www.ato.gov.au/onlineservices)
n check information, such as the GST status and ABN of other
businesses, for ordering and invoicing purposes by selecting
the Search for an ABN using ABN Lookup link, and
n apply for a tax file number. This service is not available to
individuals (sole traders).

Business Portal

The Business Portal is a free, secure website that allows you

toperform a variety of electronic transactions. You can:
n lodge an activity statement and view details of previously
lodged activity statements
n register for other tax obligations, such as GST and PAYG
withholding
n view your business account information, and
n update some business registration details (address,
contactdetails).
The portal is a secure website and to access it you will need to
identify yourself using a free ATO digital certificate. Your digital
certificate will ensure the security of your online transactions.
For more information visit www.ato.gov.au/onlineservices

eRecord

A userfriendly, free electronic record keeping package, available

in both PC and Macintosh versions. You can download a copy
from www.ato.gov.au/erecord or phone 1300139051 to
order a CDROM.

Registered Software Facility Product Register

Before making a decision on a taxrelated software package,

refer to the register at www.ato.gov.au/rsf/business to find
acommercially available package that meets your business
needsand the requirements of the Tax Office.

20

ABN registration for individuals (sole traders)

USEFUL PRODUCTS ANDSERVICES

OTHER SERVICES

Government organisations also have products that you may

findhelpful.

Business Enterprise Centres

Business Enterprise Centres are located in city and country

areas throughout Australia to help you to expand your existing
business or to explore new business ideas. They offer:
n free practical business assistance
n referral to specialist advisers such as accountants and lawyers
n help through the maze of government departments and
regulations
n business workshops
n business information, and
n problem solving.
For more information visit www.beca.org.au

Business website

www.business.gov.au is an online government resource for the

Australian business community. It provides business with a wide
range of services and information about startup, tax, licensing
and legislation, as well as significant transactions such as tax
compliance and licence applications.
The site enables businesses to comply with government
requirements more simply and conveniently by providing free
online access to essential information and services.

New Enterprise Incentive Scheme (NEIS)

NEIS is run by the Department of Employment and Workplace

Relations. It helps eligible unemployed people to establish
commercially viable new businesses through a comprehensive
package of assistance. Assistance includes:
n training in small business management, business skills and
business plan development
n NEIS Allowance for up to 52 weeks following training,
equivalent to the basic adult rate of Newstart Allowance, and
n business advice and mentor support during the first year of
business operation.
For more information visit www.workplace.gov.au

ABN registration for individuals (sole traders)

21

MORE INFORMATION
INTERNET
n Visit

www.ato.gov.au download publications, rulings and

other general tax information for businesses.
n Business website www.business.gov.au this is an
interactive service providing easy access to business
information and transactions with government.

Seminars on tax basics for small business which cover GST,

PAYG, activity statements and record keeping. For more
information, visit our website at www.ato.gov.au or phone
1300661104.

ADVISORY VISITS

PHONE

n General

business enquiries phone 13 28 66 between

8.00am and 6.00pm, Monday to Friday.
You can order the correct ABN application form, update
information or get advice about your old ABN.
You can also get advice on most small business tax issues,
including GST rulings, Australian business number (ABN),
PAYG instalments, PAYG withholding, amounts withheld
from employees wages, business deductions, preparation
of activity statements, account information for activity
statement lodgment and payment, fuel tax credits, wine
equalisation tax, luxury car tax, fringe benefits tax and
fuelschemes.

n Superannuation

FREE SEMINARS

enquiries phone 13 10 20.

n Personal

tax enquiries phone 13 28 61 for individual income

tax, tax file number and general personal tax enquiries.

You may like to have a tax officer visit you at work or home
toexplain various aspects of tax for your business. Phone
132866 to arrange a confidential visit.

OTHER SERVICES

If you do not speak English well and want to talk to a tax officer,
phone the Translating and Interpreting Service on 131450 for
help with your call.
If you have a hearing or speech impairment and have access to
appropriate TTY or modem equipment, phone 133677. If you
do not have access to TTY or modem equipment, phone the
Speech to Speech Relay Service on 1300555727.
Our phone services are available from 8.00am to
6.00pm, Monday to Friday.

FAX

Get information faxed to you about business and individual

taxes and superannuation. Phone 13 28 60 and follow the
instructions to order a catalogue or to be sent information.

22

ABN registration for individuals (sole traders)