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Contractor - ABN needed?

Contractor - ABN needed?

Old Oct 5th 2007, 8:34 am
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Default Contractor - ABN needed?

Hi,

Just moved to Sydney, working as an IT contractor (software development) client in Europe (former employer). I will invoice the client in AUD (no GST as the customer is outside of Australia).

I've just applied for the Tax File Number (TFN). And was going to apply for a ABN once i recieve my tax file number. However, when I'm looking at the ato.gov.au website it states that registering for ABN "is not compulsory":

http://www.ato.gov.au/businesses/con...1/003&st=&cy=1

I will not hit $75.000 income this financial year so I would not have register for GST (and therefore ABN) for that reason.

Does this mean I can simply invoice my client quoting my personal TFN, and declaring all income at the time I'm doing taxes in Australia? Or will I need to register for the ABN?

Thanks,
Andy
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Old Oct 5th 2007, 9:37 am
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Default Re: Contractor - ABN needed?

Originally Posted by SEAndy View Post
Hi,

Just moved to Sydney, working as an IT contractor (software development) client in Europe (former employer). I will invoice the client in AUD (no GST as the customer is outside of Australia).

I've just applied for the Tax File Number (TFN). And was going to apply for a ABN once i recieve my tax file number. However, when I'm looking at the ato.gov.au website it states that registering for ABN "is not compulsory":

http://www.ato.gov.au/businesses/con...1/003&st=&cy=1

I will not hit $75.000 income this financial year so I would not have register for GST (and therefore ABN) for that reason.

Does this mean I can simply invoice my client quoting my personal TFN, and declaring all income at the time I'm doing taxes in Australia? Or will I need to register for the ABN?

Thanks,
Andy
Hi Andy,

Generally speaking, you are required to have an ABN so that companies you invoice know that you are an enterprise and don't withold tax at the top marginal rate. To put it another way, having an ABN identifies you as running a business... so yes, I would register for an ABN. It is free and easy to do. It will also benefit you down the road when you come to arrange credit such as mortgages, etc.

Cheers,
Mark.
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Old Oct 5th 2007, 10:13 am
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Default Re: Contractor - ABN needed?

Originally Posted by longreach View Post
Hi Andy,

Generally speaking, you are required to have an ABN so that companies you invoice know that you are an enterprise and don't withold tax at the top marginal rate. To put it another way, having an ABN identifies you as running a business... so yes, I would register for an ABN. It is free and easy to do. It will also benefit you down the road when you come to arrange credit such as mortgages, etc.

Cheers,
Mark.
Thanks for your reply and for clearing that up for me, Mark.

Cheers,
Andy
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