MANY contractors are grumbling the Australian Business Number is an attempt to draw them into the Pay As You Earn tax net. However, this may not be the case.
In November application forms will be sent out to organisations the Australian Tax Office believes to be businesses.
Registration for an ABN is voluntary unless the organisation needs to register for GST.
Companies operating with an Australian Company Number will not be given a new number. Their ABN will be their ACN with two digits added to the front.
Small Business Development Corporation managing director George Etrelezis said one positive of the ABN was that each business entity would finally be identified.
“It is in their interest to make sure all suppliers do so as well. The ABN is important for recouping GST input tax credits.”
Mr Etrelezis said the ABN would only expose those that were not true contractors.
Combined Small Business Associations of WA president Oliver Moon said he believed the ABN would not upset the balance.
“It will only pick up those people not covered by the tax laws now,” Mr Moon said.
