Entitlement To An ABN
The Registrar issues ABNs only to entities who are entitled to an ABN. Entities do not have to be individuals (natural persons) or companies (legal persons). An entity can be:
- an individual; or
- a body corporate; or
- a corporation sole; or
- a body politic; or
- a partnership; or
- any other unincorporated association or body of persons; or
- a trust; or
- a superannuation fund.
For an entity to be entitled to an ABN, it must be:
- carrying on an enterprise in Australia; or
- carrying on an enterprise that makes supplies connected with Australia; or
- a company registered under the Corporations Act 2001 (Cth).
Whether or not an entity is carrying on an enterprise is a question of fact and there are many circumstances where an entity will be carrying on an enterprise. Without being exhaustive, an entity will be carrying on an enterprise if:
- it is in the form of a business; or
- it leases property; or
- it is a religious institution; or
- it is a superannuation fund; or
- it is an arm of the government; or
- it is a charity.
The Registrar of the ABR can refuse an entity's application to be registered. Equally, the Registrar can cancel an entity's registration and thus their ABN. Both of these decisions are reviewable taxation decisions.
Read more about this topic: Australian Business Number