Summary
- An ABN is compulsory for businesses with annual turnover exceeding $75,000 (at which point GST registration is also required), and is linked to the legal structure rather than the business name, meaning multiple business names can operate under a single ABN within the same structure.
- It is not possible to use the same ABN across different legal structures, as each entity is taxed separately, but it is theoretically possible to register more than one ABN to the same operating entity, such as a company running both retail and wholesale operations.
- Registering multiple businesses under the same ABN and legal entity means liabilities and risks are not legally separated, so claims against one business could affect the assets of the other, making separate legal structures with separate ABNs the preferred approach from a risk management perspective.
- This article is a guide to ABN registration for business owners in Australia, explaining the rules around having more than one ABN and the practical and legal implications of different registration arrangements.
- LegalVision is a commercial law firm that specialises in advising clients on business structures and corporate compliance matters.
Tips for Businesses
Register separate ABNs under separate legal structures if you operate distinct businesses to ensure liabilities and assets remain legally separated and to minimise operational risk. Update your ABN details with the Australian Business Register within 28 days of any changes to your business, including name changes, contact details, or authorised contacts. Seek legal advice before registering multiple ABNs to the same entity to understand the risk management implications for your specific circumstances.
Registering an Australian Business Number (ABN) is a fundamental step for most businesses in Australia, and is compulsory if your annual turnover exceeds $75,000, at which point you must also register for Goods and Services Tax (GST). However, the rules around having more than one ABN are less straightforward. This article explains the situations where you can have more than one ABN in Australia.
Applying for an ABN
Applying for an ABN is relatively straightforward, and you can do this through the Australian Business Register website. You must complete an online form and provide details, including:
- your personal or entity tax file number;
- general information about the business; and
- a list of authorised business contacts.
If your application is successful, you will be issued an ABN immediately. If you are not successful, you will receive a refusal letter outlining the reasons for the refusal and providing you with further options available to you.
Multiple Business Names Under One ABN
Additionally, you can have multiple business names registered to the same ABN. Some people start a business as a sole trader and then commence another small business under the same structure. There is no need to register an additional ABN as the registration is essentially linked to the structure rather than the business name itself. Likewise, using the same ABN is a way for the government and the public to clarify which entity is linked to which business’ trading name.
It is also not possible to use the same ABN for two separate businesses within different legal structures. The rationale underpinning this is that you use your ABN for keeping tax records of the business. Since each legal structure is taxed separately, it is not possible to use one number across multiple entities.
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Multiple ABNs Under One Business Structure
You might also choose to have more than one ABN linked to your operating entity. Theoretically, it is possible to do this. These circumstances might arise when you have a company incorporated with both:
- a retail store for selling your product, and
- wholesale manufacturing business where you sell products to other distributors.
Whilst this is possible, it is not best practice. The reason is that all liabilities and risks associated with each business are not legally separated when you register them to the same entity. Therefore, any claims against one business could potentially affect the assets of the other business. This could increase your losses and is not the best practice from a risk management perspective.
Updating or Cancelling an ABN
Your unique ABN enables various government departments and agencies to identify your business, including ASIC and the ATO. Therefore, if any changes to your business occur, you must update these details within 28 days. This includes amendments to authorised contacts, name changes and contact details. If you change your business structure, you may have to cancel your ABN entirely and apply for a new one using the new entity’s details.
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Key Takeaways
Registering more than one ABN to a business structure comes with potential risks and consequences. In some circumstances, it may be a relatively low risk to have more than one ABN registered to an entity type or individual. However, if you have incorporated a company with the view of limiting your risk as much as possible, intertwining the ownership, assets and liabilities for two separate businesses may expose you to unnecessary operational risk. It may be worthwhile to mitigate these circumstances by applying for two separate ABNs under two separate legal structures.
If you would like more information about registering for an Australian Business Number or your other corporate business obligations, LegalVision provides ongoing legal support for all businesses through our fixed-fee legal membership. Our experienced business lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 1300 544 755 or visit our membership page.
Frequently Asked Questions
An Australian business number is a unique number attached to your business. It enables you to be identified by various government departments and agencies such as ASIC and the ATO.
You need your personal or entity tax file number, general information about the business, and a list of authorised business contacts. Applications are submitted through the Australian Business Register website.
In Australia, you can choose to have more than one ABN linked to your operating entity. For example, you may have an incorporated company with a retail store and wholesale manufacturing business that sells your products.
Technically, yes. It can be common for individuals operating under a sole trader structure to run two separate small businesses. For example, one business making wedding invitations and another baking wedding cakes.
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