If you, like many others, do a little extra work on the side or even have your own weekend business to bring some extra money in, do you know how to calculate those profits when tax time rolls around? One of the easiest ways is to obtain an Australian Business Number, or ABN.

The ABN is an 11 digit number, which is unique to your business and comes with a range of benefits.

Free registration for your ABN and business name

As you complete the online registration process, you are also given the option of registering for a business name. This could be your own name or the name of your fledgling company for use in business transactions. The process essentially equates to less paperwork for both yourself and the ATO to complete, as you will be registering for your ABN and your business name at the same time.

Claim back business costs for EOFY

One of the biggest perks of having an ABN is the ability to apply for credits. Anyone with an ABN can try to claim GST credits and fuel credits. If you use a business car to travel between jobs or during business hours from one task to another, you should be able to claim a tax fuel credit. Unfortunately LPG isn’t included in the current fuel credit scheme, but petrol, diesel and kerosene can all be claimed. If you are aware of (or record) how many hours you have spent travelling for work in your car, then this information can help you claim the fuel credits and save money during the financial year.

One ABN for them all

If you are a business, in a partnership or a sole trader, then you only need to get the ABN once for all of your future transactions with your new business name. If you complete freelance work on the side for a range of clients, then you only need to provide the same ABN to each client, regardless of the type or duration of the task. It is also possible to manage a range of businesses under one ABN. You could freelance as a graphic designer and run an online store with your ABN whilst working part-time, should you choose to do so.
Having an ABN essentially opens up more self-employment possibilities and gives you the freedom to invest in your business while the government supports you through various benefits and concessions.

As small business specialists, Stone Accountants & Advisors can assist you with all your ABN queries, from setting up one to managing compliance issues going forward. If you would like more information contact us, or check out our page on business structure setup for more information on ABNs.

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