A lot of international students who come to Australia to pursue their higher studies find themselves constantly wondering about how to make the most of their time in Australia. To answer this most students look towards finding a job, but they’re only allowed to work for 40 hours a week. Many other students use their special skills and become sole business owners through offering some product of services to their clients.

Whichever path students may choose there is one phrase that they commonly search on internet, how to apply ABN for international students, when trying to earn money or doing business by themselves. An ABN number is a very important thing for any one in Australia, who runs their own business.

In order to learn how to apply ABN for international students, you must first understand what ABN actually is and what purpose does it serve. In this article we will tell you all you need to know about ABN and how to apply ABN for international student in Australia. We will also provide information about TFN and how both ABN and TFN differ from each other.

What is ABN?
ABN stands for Australian Business Number. The Australian Business Number is an important unique 11-Digit identification number, used to identify any business operating in Australia. ABN is important for all businesses as it is necessary for registering your business and for tracking your Tax obligations at the end of the fiscal year.

ABN came into effect on 1^st July 2000, by John Howard. It is issued by the Australian Business Register, which is governed by the Australian Taxation Office. The Australian Commissioner of Taxation is responsible for handling all operation by the Australian Business Register including the issuing of ABN.

ABN is issued to all businesses, start-up, entrepreneurs and self-employed individual as a mean for identifying the business profits and expenses in order to calculate their tax obligations. It is mandatory for all sole proprietors and self-employed individuals in Australia to have their ABN mentioned on the invoice generated by them at the time of payment.

Who can apply for an ABN?
ABN is not offered to every working individual in Australia. Anyone who performs any business or undertakes any commercial activity in Australia is required to have an ABN in order to be able to register for GST and various other benefits which we will discuss in a bit.

Here are the four major entities that are required to have an ABN:

Trusts: Any trust that engages in philanthropy or charity work for the benefit of the people of the community, or those who hold assets are required to have an ABN for generating valid invoice on their transactions.

Businesses: In order for any business operating in Australia to be able to register with the ASIC and be able to enjoy the advantages of its policies is required to have ABN.

Partners: Any business whose profits and losses are shared among its business partners are also required to have an ABN.

Self Employed:  Lastly, any sole trader or proprietor of a commercial activity is required by law to have an ABN in order to accurately report their financial details. This is where most international students fit in.

What is TFN?
Another legal identification number in Australia which most international students get confused with is the TFN.

TFN stands for Tax File Number. It is a unique number given to all individuals who are working in Australia. It is important as it allows the employers to deduct the suitable tax amount from their pay check regularly, as opposed to the yearly tax filings in ABN.

This makes the lives of working class people quite easy as it allows them to live free without worrying about their tax liabilities. As failing to correctly file your tax obligations, can have serious consequences including imprisonment for the responsible entity.

Difference between ABN and TFN
Many international students in Australia get confused by such terms and many even end up dropping their idea of filing for their ABN. Before they even learn about how to apply for ABN for international students they face the dilemma if they should file for a TFN or instead of it if they already have a TFN, do they need any other registration, or can you even have TFN and ABN as the same time?

International students commonly encounter such questions and doubts when they’re studying in Australia. This is because they come from a different land and are used to an entirely different legal framework for such processes. The best way to tackle this is to educate oneself and learn about the requirements and the differences between the two.

The Tax File Number is necessary for all individuals working in Australia, in order to pay their taxes regularly. Whenever you change a job or begin working for a new employer, they require your TFN number to include it in your legal employment documentation.

Whereas, when a person is an employer himself, or runs a business by themselves, or is deemed self-employed then they do not require any such employer to provide them their employment documentations. Such individuals are required to have an ABN number so that they can file their taxes. Let’s say you are a trader, or a yoga instructor, or a software developer providing your services directly to clients in exchange for money, then you need ABN while generating your invoice in order to get paid.

People having a TFN pay their taxes at the source as they get paid, whereas, business owners and freelancers with ABN pay taxes at the end of the financial year, for which they have to keep track of all of their business transactions and invoices for accurate filing.

Benefits of ABN
There are in fact a lot of benefits of getting an ABN. It provides you accessibility to various reforms and policies set by the government in order to facilitate industrial development and growth in the country. Your business can only take benefit from that if you have a legitimate business with ABN number.

Here are few of the features and advantages of having ABN that a person may get:

1. You can make your business legitimate

Any business won’t be acknowledged until and unless it is registered with an ABN number. Being a registered business opens up new possibilities for you to expand your operations to new horizons.

2. You can get an Australian domain name ending with .au for your business website

As since the corona virus outbreak, businesses all over the world are moving their business operations online and fortifying their online infrastructure. This involves having a well-made website. With the help of ABN, you are eligible to register for an .au website which can significantly increase your business reputation and credibility and drive in more clients and traffic to your website.

3. You can register with ASIC

Having ABN for business allows you to get registered with ASIC under the list of legitimate businesses operating in Australia. It also provides you protection as per the policies and frameworks of ASIC.

4. You can benefit from the energy reforms and policies made by the government

Government makes efforts to promote business growth inside a country. This is why they make policies to allow relaxation for a business on their energy consumptions.

5. You can get credit on your fuel tax

Fuels are levied on petroleum and other fossil fuel products. A business having an ABN can get credit on their fuels consumptions which can be helpful to the company.

6. You can get benefit on GST

Any business that is registered with the Australian business register and has an ABN gets to claim GST credit benefit if they have registered for the goods and services tax.

7. You are not required to pay taxes every time you get paid

This is one of the most beneficial aspects of ABN for a business. As a business it gets really tedious to file your taxes regularly each and every time you receive money. It just makes more sense for a business to file all of its tax obligations at the end of the fiscal year.

How to Apply ABN for International Student?
International students feel the most confused while thinking about how to apply for ABN. The sheer amount of questions you are required to answer can be quite large, but it is also very important to provide all of that information honestly.

You can apply for an ABN online through the official website of Australian Business Register by providing some personal information regarding yourself and the nature of the business you conduct.

Let us now have a step by step look at how to apply for ABN for international students in Australia:

Step one:  Website
All ABN applications are undertaken by the Australian Business Register. Therefore you need to go to their official website and find the suitable link to initiate your application process for ABN.

Step two:  Agreement.
Immediately on starting your application you will be presented with a disclosure agreement. Read this information carefully and select ‘Yes’ and press next after that.

Step three:  ABN Entitlement.
International students in Australia, if self-employed or working as a freelancer then you need to select yourself as a sole trader.

International students are not allowed to run a company in Australia.

You will be asked if your operations are conducted inside Australia then you need to select ‘Yes’.

Have you started taking a step to start an activity? Select, Yes.

After answering the questions you will be presented with a summary which tells you if you’re entitled to ABN or not.

Step four: Applicant details
You need to fill some details regarding your current status in Australia.  Such as:

 Have you ever held an ABN before? Probably not, so select ‘No’

Do you already have a TFN? Yes, if you do and have previously worked in the past.

Do you wish to apply for tax file number? You need to select no and get on to the next.

Step five: Business Information
This is the step where you provide details on the nature of your business. This is the longest part of your application.

 Are you a resident for taxation purposes? Yes

International students are considered to be resident for tax purposes which means you’re paying a lower tax we’re going to leave that tax agent’s registration number empty.

Select next and provide your personal details here. Your title, your first name, your middle name & your family name, date of birth and your TFN as well, you can leave that TFN box empty as well, if you don’t have one.

Select next for business activity details

When do you need the ABN? Provide the date. If you’re using ABN for less than three months provide the date as well, provide a business address details,

Country – Australia, provide your street address, your suburb your state and the postcode

If your postal and business address is same, Select Yes

Provide your email address. Is there multiple business locations? No

Then provide the contact details. The first part is pre-filled so no need to change that. Provide your business contact details, your mobile phone number, your email address, your preferred language

Select no to more contacts and press next.

Step 6: Reason for application
Here you need to tell why you need an ABN number.

Is this the first time you’re getting self-employed select YES and press next

Step 7: Declaration.
Read the declaration form and privacy statement carefully. Write your full name your position held which is sole trader and press submit after that.

Once you submit your application, you get your ABN number usually right away. Sometimes before issuing you an ABN number ABR may need to contact you for further details and in that case you will need to wait for your ABN number

This completes your applications process for ABN.

We hope the article helps you in understanding the importance of ABN number and how to apply ABN for international students!

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