Purpose of ACNs and ABNs
Prior to the introduction of the 9 digit ACN, company information was filed under the company name, which might vary from 1 to 80 characters. This is an inefficient way to run a filing system, and can lead to problems, particularly if two company names differ in one of the middle digits, for example: Strudle Pty Ltd and Stradle Pty Ltd.
Unique identifiers, like the ACN, help reduce fraud by firstly clearly differentiating companies and/or subsidiaries with similar names, since companies with similar names will tend to have completely different ACNs.
Also if a company changes its name for any reason, including phoenix company, the ACN remains the same.
Read more about this topic: Australian Company Number
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