What is a TFN & ABN?

In Australia, a Tax File Number (TFN) and an Australian Business Number (ABN) are two distinct identifiers used for different purposes within the tax and business systems. Here’s a breakdown of each:

1.  Tax File Number (TFN):

A TFN is a unique number issued by the Australian Taxation Office (ATO) to individuals and organizations for the purpose of identifying them within the tax system.

Who Needs One:

Individuals: Australian residents, temporary residents, and even foreign residents who earn income in Australia need a TFN.

Businesses: Businesses and other entities also require a TFN for tax purposes.

Uses:

Tax Returns: Required for filing tax returns and ensuring the correct tax rate is applied.

Employment: Employers need your TFN to withhold the correct amount of tax from your wages.

Government Benefits: Required for receiving certain government benefits and services.

2.  Australian Business Number (ABN):

An ABN is a unique 11-digit identifier issued by the Australian Business Register (ABR) to businesses and entities operating in Australia. It is used for business and taxation purposes.

Who Needs One:

Businesses: Sole traders, partnerships, companies, and trusts need an ABN if they are carrying on an enterprise in Australia.

Non-Business Entities: Some non-business entities, like certain charities and not-for-profits, may also require an ABN.

Uses:

Business Transactions: Required for invoicing and transactions, especially for dealing with other businesses and the government.

GST Registration: Necessary if your business is registered for Goods and Services Tax (GST).

Tax Reporting: Used for reporting income and fulfilling other tax obligations.

At YS Accounting, we specialize in assisting with your TFN and ABN. Please feel free to schedule an appointment with us on our website at www.taxbne.com.au/. We look forward to providing you with the support you need.