The accuracy of the content is not guaranteed. Please rely only on the authorised document. Tax Commissioner Michael Carmody today launched a new guide to help business to understand the Australian Business Number (ABN) quotation requirements that apply from 1 July 2000 under the Pay As You Go system. "The latest Tax Office production, 'Should your suppliers quote their ABN? … a guide for business' takes a business through the steps it should follow before paying for business related goods or services," Mr Carmody said. "Businesses should now be well aware that under the new tax system, the ABN of a supplier should be secured before paying for those goods or services. If not, 48.5 per cent of the payment must be held back and sent to the Tax Office. "This new one page guide provides the simple steps to follow, including the manner in which a supplier can quote their ABN and what to do if the supplier does not quote an ABN. "Businesses need to be aware that there are some circumstances where they should not withhold from payments to a supplier. If the payment is $50 or less, amounts should not be withheld. Further, there should be nothing withheld if the supplier is under 18 years of age and the payment is less than $120 per week. I have exercised a discretion to vary the withholding requirements for under 18s to ensure that school students who sell newspapers, lollies and the like on commission or do other odd jobs for business do not need to register for an ABN," Mr Carmody said. The ABN quotation rules only apply to those suppliers who are eligible for an ABN. The guide also acts as a mechanism for other suppliers to state that they are not a business and therefore should not have any amount withheld. "If the supplier is selling an item in their private capacity, or is providing goods or services that arise through a hobby, they would not be entitled to an ABN," Mr Carmody said. "This guide provides these suppliers with a facility to make a statement to the purchaser to avoid having an amount withheld. A similar statement can be made by a non-resident supplier who is not entitled to an ABN." The electronic version of new guide and accompanying statement is available today on the Tax Office website at www.taxreform.ato.gov.au. The guide will be mailed to all registered businesses in the next few weeks and can be obtained from newsagents displaying the 'N' logo, banks and Tax Offices from 28 June 2000. CANBERRA Attachment: Should your suppliers quote their ABN? ...a guide for business - PDF
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