difference between Abn and Tfn

by

ABN and TFN are two types of identification numbers used in Australia. ABN stands for Australian Business Number, while TFN stands for Tax File Number. Both of these numbers serve different purposes and are issued by different authorities.

Below are the main Differences Between Abn and Tfn

Difference between ABN and TFN:

  1. Purpose: The ABN is used to identify a business or organization in Australia. It is a unique 11-digit number that is used for various business purposes, such as registering for GST, invoicing, and applying for government contracts. On the other hand, the TFN is used to identify an individual for tax purposes. It is a unique 9-digit number that is issued by the Australian Taxation Office (ATO) to all individuals who earn income in Australia.
  2. Issuing Authority: The ABN is issued by the Australian Business Register, which is a division of the Australian Taxation Office (ATO). The ATO is responsible for maintaining the register of all ABN holders in Australia. The TFN, on the other hand, is issued directly by the ATO to individuals who apply for it.
  3. Eligibility: To be eligible for an ABN, a person or organization must be carrying on an enterprise in Australia. This includes running a business, providing services, or engaging in commercial activities. On the other hand, all individuals who earn income in Australia are eligible to apply for a TFN.
  4. Format: The ABN is an 11-digit number, with the first two digits representing the entity type, followed by a nine-digit unique identifier. The TFN, on the other hand, is a 9-digit number that is unique to each individual.
  5. Usage: The ABN is primarily used for business purposes, such as invoicing, registering for GST, and applying for government contracts. The TFN is used for personal income tax purposes, such as filing tax returns, receiving government benefits, and applying for a tax file number declaration.

Conclusion: In summary, the primary difference between ABN and TFN lies in their purpose, issuing authority, eligibility, format, and usage. The ABN is used to identify a business or organization in Australia, while the TFN is used to identify an individual for tax purposes. The ABN is issued by the Australian Business Register, while the TFN is issued directly by the ATO. Eligibility for an ABN requires carrying on an enterprise in Australia, while all individuals who earn income in Australia are eligible for a TFN. The format and usage of these two numbers also differ, depending on their respective purposes.

Leave a Comment