When you’re new to contracting, it’s important that you get yourself set up properly right from the start. Part of getting set up is registering yourself for an ABN. It’s not just an ATO requirement - there are also real benefits to registering for an ABN.
Here’s our quick guide to why you should register, and what it means for you.
It looks professional to your clients
Becoming an ABN Sole Trader mean that you’ll be able to put your ABN Number on any invoices or documents you send to your clients. Having an ABN Number is a sign of a professional individual or business, and means that you’ve actively taken steps to register yourself and be compliant.
Your information will be searchable on the ABN Register- so your prospective clients will be able to look you up and confirm that you’re fully registered.
Your clients won’t be required to deduct tax from you
If you invoice an organisation, and you don’t have an ABN, that organisation is required by law to deduct tax at the highest rate, as well as declaring your income through to the ATO. As an individual, you won’t want a big chunk of tax deducted before you get paid, so having an ABN can make sure it doesn’t happen.
You can get yourself a .com.au domain name
If you’re not an ABN Sole Trader, you won’t be eligible to get a .com.au domain name. This will mean that you’ll have to choose another domain like .com or .org - and the chances are that your chosen domain name might already have been taken by someone else.
Having a .com.au domain name can help you appear professional and locally relevant to your clients - so it can really pay off in the long run.
It’s free to register as an ABN Sole Trader
It’s totally free to register as an ABN Sole Trader, as long as you met the eligibility criteria. Check out the Australian Business Register’s website to help you determine whether you meet the criteria - it’s not expected that you’ll tick all the boxes, but the vast majority of people earning independent income will meet the base criteria required.