difference between TFN and ABN

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TFN and ABN are two different identification numbers issued by the Australian government to individuals and businesses for tax purposes. While both numbers are used for tax purposes, they serve different functions and are issued to different types of entities.

Main Differences between TFN and ABN

Differences between TFN and ABN:

  1. Purpose: A Tax File Number (TFN) is a unique identifier issued to individuals for tax purposes, such as for filing an income tax return or applying for government benefits. An Australian Business Number (ABN), on the other hand, is a unique identifier issued to businesses and organizations for tax and business purposes, such as registering for goods and services tax (GST) or invoicing customers.
  2. Issuing Authority: TFNs are issued by the Australian Taxation Office (ATO) to individuals, while ABNs are issued by the Australian Business Register (ABR) to businesses and organizations.
  3. Eligibility: All individuals who earn income in Australia are eligible to apply for a TFN, while not all businesses are required to have an ABN. Businesses with an annual turnover of $75,000 or more must register for an ABN and GST, while businesses with a lower turnover may choose to register voluntarily.
  4. Structure: TFNs are nine-digit numbers issued to individuals, while ABNs are 11-digit numbers issued to businesses and organizations.
  5. Usage: TFNs are primarily used for personal tax purposes, such as filing an income tax return or applying for government benefits. ABNs, on the other hand, are used for business-related tax and administrative purposes, such as registering for GST, invoicing customers, and conducting business with other organizations.

In summary, TFNs and ABNs are two different identification numbers issued by the Australian government for tax purposes. TFNs are issued to individuals and used for personal tax purposes, while ABNs are issued to businesses and used for business-related tax and administrative purposes. While both numbers serve important functions, they are issued to different types of entities and have distinct structures and uses.

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