Checklist - ABN

The below checklist advises when the ABN rule applies and if the supply is excluded from the ABN rule.

When the ABN rule applies

If the entity supplying you with goods or services is an enterprise to which the ABN rule applies, follow the step by step guide.

If you withhold, you should call the Tax Office on 13 24 78 to register as a withholder. This is different to registering for an ABN. If you are withholding from employee wages, you are already registered as a withholder.

If the supply is excluded from the ABN rule

You should not withhold tax if:

• the total payment to the supplier is $82.50 or less (including GST)
• the supplier is an individual under 18 years of age, is not your employee, and the payments you make to that person do not exceed $120 per week, or
• the supply is wholly input taxed under GST - this includes most financial supplies, supplies of residential rent, residential premises and some precious metals and food supplies by school tuckshops and canteens that have chosen to be input taxed.

Contact the Tax Office if you are not sure if a supply is input taxed.

Also, you should not withhold if you are satisfied that:

• the supply is made in the supplier's private capacity or as their hobby
• the payment is exempt income for the supplier (for example, the supplier is a non-profit body)
• the payment is to a non-resident who is not carrying on a business in Australia or through an agent in Australia, or
• the supplier is not an enterprise because they have no reasonable expectation of profit or gain - for this exception to apply, the supplier must provide you with a written statement to this effect.

More information Definitions - what is an enterprise? PAYG Withholding Go to the Australian Business Register See Record keeping essentials Tax basics for small business (NAT 1908)