Some employers will require their Working Holiday Makers employees to apply for an Australian Business Number (ABN). By applying for an ABN you are registering yourself as a 'business' i.e self-employed.
An ABN is not the same as a Tax File Number (TFN). The TFN is your personal number for dealings with the ATO. An ABN, whilst 'attached' to your TFN on ATO systems, is a public number used in business dealings.
The ABN:
• helps you claim goods and services tax (GST) credits
• facilitates a single business activity statement
• lets you claim any energy grants credits that you qualify for
• stops businesses deducting pay as you go (PAYG) withholding tax from payments to you
• allows businesses to easily confirm your details for ordering and invoicing purposes
If your business has an annual turnover of $75,000 or more, you must register for GST and you'll need an ABN to do this. If your business has a lower annual turnover, it's up to you whether you register.
How do I apply for an ABN?
You can apply for an ABN online for free from the Australian Business Register (ABR) web site
www.abr.gov.au. If you require further assistance with your application, please call the ATO on 13 28 66.
Provided you have supplied all the information required, you will usually receive on-line notification of your ABN immediately upon completion of the ABN application.
Where all the required information has not been provided, or where further verification action is necessary, an ABN will not be allocated immediately. Under these circumstances your application will be processed manually by the ATO.