When should an artist apply for an Australian Business Number?
The ABN is important for identification purposes under the PAYG system. Since 1 July 2000, if an artist does not quote his or her ABN on invoices provided to other businesses, the service requirer may be required to deduct a withholding of 48.5% (the top marginal tax rate plus the medicare levy) from payments made to the artist. The ABN is also the GST registration number if an artist is required to be registered for GST. When an artist applies to the Australian Taxation Office for an ABN they will be required to prove that they are carrying on an enterprise. Only individuals, companies or partnerships operating an enterprise (a business that is a significant commercial undertaking operated with a view to making a profit) will be entitled to obtain an ABN.
