Do I need an ABN?
When completing a task, a Task Poster may request the person completing the task (the Airtasker) to provide an ABN.
An ABN is an Australian Business Number, which businesses and independent contractors use when dealing with the Australian Tax Office (ATO) or other government departments. If the Task Poster is asking you to get an ABN, it is possible that he or she is hiring you as an independent contractor.
Many tasks on Airtasker are done on an independent contractor basis. If you’re not familiar with what it means to do work as an independent contractor, we suggest doing some research to learn more. Being independently employed means having the freedom to do different kinds of work for lots of different people, and that involves managing your time, obligations, and income on your own.
Whilst not an absolute rule, you are generally considered an independent contractor if you decide how and when you want to complete a task and if you use your own tools rather than the equipment of the Task Poster.
Remember: Airtasker is an open marketplace for people to outsource tasks, find local services or complete flexible jobs to earn money. Our users have the freedom to work with people or businesses in the structure that suits the individual circumstances of the task or job – whether as an independent contractor or as an employee. If you’re not sure whether the Task Poster is assigning you to a task as an independent contractor or as an employee, it’s always best to ask them.
How to apply for an ABN – instant registration for FREE:
It’s simple to apply for an ABN through the Australian Government business website at business.gov.au and if you supply all the info required, you should receive online notification of your ABN straight away. You can also apply via snail mail (paper forms) by phoning 13 28 66.
It doesn’t cost anything to apply for an ABN (ie. it’s FREE) and if you have your TFN (Tax File Number) handy, you can apply for an ABN straight away here:
Good reasons to apply for an ABN:
An ABN can assist you and help you get more work by:
> allowing you to easily confirm your details for ordering and invoicing purposes
> claiming GST credits
> claiming fuel tax credits qualified for
> limiting amounts that the Task Poster may otherwise withhold from payment under PAYG withholding
> dealing with the ATO and other government departments and agencies.
For more information visit:
> The ATO website has a great resource on getting started with an ABN.
> The Fair Work Ombudsman also has a fact sheet that helps explain the differences between an employee and an independent contractor.