The Australian Business Number (ABN) is a unique identifier essential for businesses operating within Australia. It is an 11-digit number that serves various purposes, including tax and other business-related activities. The format of the ABN includes two leading check digits followed by a 9-digit identifier.
These check digits are crucial as they are used to validate the ABN using a modulus 89 calculation, ensuring the number's authenticity. This system of check digits helps prevent errors in transcription and fraud, providing a reliable means of confirming business identities in Australia. Entities eligible for an ABN include individuals, corporations, partnerships, trusts, and other forms of organizations that are active in business undertakings in the country.
The ABN is publicly accessible and can be verified through the ABN Lookup, which maintains a comprehensive database of all registered ABNs. This transparency aids in the ease of doing business and fosters trust in commercial transactions. For businesses, displaying their ABN on invoices and receipts is a legal requirement, which also simplifies the process of dealing with other businesses and government agencies.
The ABN is a cornerstone of the Australian business infrastructure, streamlining processes and ensuring a cohesive economic environment. It is a testament to the organized and systematic approach that Australia takes towards business registration and regulation, reflecting the country's commitment to a robust and transparent economy.