Has your ABN been cancelled?  Confused about whether you’re entitled to an ABN?

If your ABN is cancelled the impact on your business and income can be significant and distressing. This is a hot topic right now for sole traders and contractors and businesses in Australia – see https://www.smh.com.au/money/tax/ato-abn-outscribe-tax-office-four-corners-20180404-p4z7rf.html

There is no automatic entitlement to an ABN. To be entitled to an ABN you must meet certain criteria – the Australian Business Register says:

“You should ensure you’re entitled to an ABN before you apply. If your employer has asked you to get an ABN it is highly likely you’re not entitled to an ABN. Typically, workers engaged under an ABN when they’re legally in an employment relationship are being underpaid and missing out on superannuation, paid sick leave and annual leave. They may also miss out on the safeguards of the Fair Work Act such as protection from unfair dismissal.

Employers that require their workers to be engaged under an ABN when they’re really employees are engaging in ‘sham contracting’ and can be penalised by the ATO, the Fair Work Ombudsman and state and territory revenue offices and workcover agencies.

Before applying for an ABN, you need to have settled on the right structure for your business (for example, sole trader or company).

If you get an ABN you must continue to meet the entitlement requirements. If your business situation changes you may need to update or cancel your ABN.

We regularly review people who have been issued with an ABN to check that they’re entitled and their details are up to date. Even if you’ve already been issued with an ABN, your entitlement may be reviewed” – source:  https://abr.gov.au/For-Business,-Super-funds—Charities/Applying-for-an-ABN/ABN-entitlement/

Still confused? Consult us to determine if you have an entitlement to an ABN.

If you’d like a free no obligation consultation to see how we can help, simply click here.