Holding an Australian Business Number (ABN) comes with a set of responsibilities that are crucial for compliance and the integrity of the Australian business landscape. Firstly, it is imperative to maintain accurate and up-to-date information on the Australian Business Register (ABR), including changes in business details or contacts, which must be updated within 28 days of any changes.
Businesses must also ensure they are meeting their tax obligations, which include lodging annual income tax returns and, if applicable, quarterly or monthly activity statements. This is essential regardless of the business's profit or loss status and is independent of the tax-free threshold.
For those registered for Goods and Services Tax (GST), it is necessary to lodge regular Business Activity Statements (BAS), and if participating in the Pay As You Go (PAYG) withholding system, businesses must report and remit payments collected from employees' wages.
Another key responsibility is the management of superannuation guarantee contributions for employees, which involves calculating the correct amount, reporting, and paying it to the appropriate super funds.
Businesses with an ABN must also be aware of their entitlement to the number; it is not a right but a privilege that requires the entity to be actively engaged in business activities. The Australian Taxation Office (ATO) may conduct reviews to ensure that the ABN holder is genuinely running a business and may request evidence to support this. Failure to provide such evidence can lead to the cancellation of the ABN.
Moreover, if a business decides to cease operations, it is responsible for cancelling its ABN and ensuring that all tax and reporting obligations have been met prior to cancellation. This includes lodging any outstanding tax returns and activity statements, and fulfilling any payment obligations.
In summary, an ABN is not just a number; it represents a business's commitment to operating within the framework of Australian law. It demands diligence in record-keeping, transparency in reporting, and punctuality in fulfilling tax and superannuation obligations. These responsibilities, while they may seem demanding, are fundamental to the fair and efficient functioning of Australia's economic system.