In what ways does an ABN affect your tax?
I’m not 100% sure, how does an abn affect my personal income??
- 1 decade agoFavorite Answer
You need an ABN to be in business in Australia, whether as a sole trader, company or whatever entity you choose. If you are a sole trader (ie Joe Blow trading as...) then any income you earn using your ABN needs to be declared on your income tax return, in addition to any other income you have including wages, interest etc. All this income gets combined to reach your "taxable income" and it is this figure on which your tax liability for the year will be charged.
- 1 decade ago
It doesn't affect it at all.
An ABN is for a business what a tax file number is for an individual.
It just means you can sign up for cheap phone deals etc under a business name hehe.Source(s): I got an ABN so i could get an optus business plan.. saved me heaps compared to the regular plans they had :)