ABN vs ACN
What’s the difference between an ABN and an ACN (apart from the extra 2 digits!) and which should you use in your contract?
In one minute or less, I’ll tell you. Hi, it’s Simon here from the Contract Company. Contracts. That’s all we do all day, every day, and sometimes overnight. Right.
An ACN is an Australian Company Number, which is issued by ASIC. Every company that’s registered in Australia has an ACN. It is its primary identifier. What do I mean by that?
Well, once you form a company, you can change the name of the company as many times as you like, subject to paying the appropriate ASIC fee, et cetera. But the ACN number never changes. All right. That’s what an ACN is. It’s a number issued by ASIC for companies.
An ABN is an Australian Business Number issued by the tax office, and they are only issued to entities which have to register for GST, which are turning over more than 75,000, I think the current number is. So, that’s what an ABN is.
What should you put on a contract? Well, if the other party or you are a company, then you should always insert the ACN.
And if the other party or you are an individual or some sort of trust structure, then you should put the ABN.
I’m Simon from the Contract Company. If you have any questions, 1800-355-455. Or firstname.lastname@example.org. I hope that helps.