What is an ABN and why should I get one?
This week, we’re exploring the acronym ABN, and learning how it can help your future.
ABN stands for an Australian business number. It’s a list of 11 digits that declares your business, side hustle or startup to the ATO (Australian Taxation Office).
Getting an ABN is an exciting milestone. Especially when you leave the 9am-5pm behind and start working for yourself. But did you know you can also register for an ABN while holding a full-time job. This may be the case if you work full-time and also...
• Sell your creative work to friends and family ($75 or more per item).
• Make money from your side hustle ($75 or more per transaction).
• Offer your skills in a freelance capacity.
• Plan to launch a startup.
Yes! Let’s get an ABN
Having an ABN is like wearing a good-quality blazer to a meeting. It not only makes your business look professional, but also signals your organisation, capability, and work-ready attitude. An ABN means you’re now playing in a bigger pond of fish. It gives you the privilege to earn extra money and be your own boss. When tax time rolls around, you can also claim deductions for any work-related expenses like tools and software.
No thanks, I’ll pass.
If you are earning a profit and operating as a small business but don’t have an ABN, your client can withhold 46.5% of the payment.
Honcho Hint - Business or a hobby? Check out these free resources to decide.
Register for an ABN with Honcho or from the Australian Business Register.
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