There are a few key differences between an ABN and an ACN that business owners should be aware of. An ABN is issued to Australian businesses and is used for tax purposes, while an ACN is issued to Australian companies and is used for registering the company with ASIC.
Additionally, an ABN must be quoted on all invoices and quotes, while an ACN does not need to be mentioned unless it is being used as a trading name. If you’re unsure which number to register for your business, speak to an accountant or business advisor for help.
What is ABN?
The ABN is a unique 11-digit number that identifies your business to the government and others you deal with. It’s free to apply for an ABN. You can apply when you register your business name. An ABN is not the same as a business name or company number. A business can have more than one ABN. You may need an ABN if you: want to register for GST; claim fuel tax credits; claim other government entitlements; are tendering for contracts, or are selling to the public.
If you don’t have an ABN, you may pay more tax. Suppliers may withhold 46.5% from payments made to you, rather than the usual 10% withholding rate for ABN holders. This is called ‘Non-Compliance Tax’. You can search the ABN Lookup website to find someone’s ABN.
What is ACN?
ACN is the Australian Company Number. ACN is a unique nine-digit number issued by the Australian Securities and Investments Commission (ASIC) to every company registered in Australia. The ACN must be quoted on all documents lodged with ASIC, as well as on any public documents relating to the company such as the company’s annual reports. ACN is also used by banks and other financial institutions when verifying company details. In addition, ACN can be used by businesses when applying for tenders or contracts.
Difference between ABN and ACN
ABN stands for Australian Business Number. An ABN is an 11-digit number that is assigned by the Australian Taxation Office. ABNs are used by businesses to identify themselves for tax and superannuation purposes. ACN stands for Australian Company Number. An ACN is an 8-digit number that is assigned by the Australian Securities and Investments Commission.
ACNs are used by companies to identify themselves for legal and financial purposes. ABNs and ACNs are two different numbers that serve different purposes. businesses need both an ABN and an ACN to operate in Australia.
ABN and ACN are both numbers that identify your business. An ABN is an Australian Business Number and is used by businesses that provide goods or services to other businesses or the government. An ACN is an Australian Company Number and is used by companies who have a share capital, are registered with ASIC, and have at least one shareholder.