From Our Blog

ABN and Contracting

If someone has an ABN, they’re a contractor, right?

Wrong! An ABN is a tax identifier only, it has NO bearing in determining if someone is a contractor or not.

Be Certain.

The Australian Business Number (ABN) is a unique 11 digit identifier that makes it easier for businesses and all levels of government to interact.

  •  ABN registration is not mandatory
  •  Not everyone is entitled to an ABN
  •  Individuals must be able to establish they are operating an enterprise
  •  Contractors operating under “labour-hire” arrangements are not entitled.
  •  Some individuals provide their services as an independent contractor using their Tax File Number (TFN)

Having an ABN doesn’t make an individual an independent contractor. The specific circumstances of the working relationship are important in determining whether someone is an independent contractor or an employee.

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