One of the advantages of doing an exchange program in Australia is the possibility of working while on a student visa. In order to enter the job market, the exchange student must obtain the Tax File Number (TFN)The Australian Taxation Office (ATO) is the agency responsible for the country's finances and tax system. With this number, the student can be registered as an employee, i.e. they will have rights and obligations with the hiring company, such as working hours, vacations, superannuation, sick leave and more.
It is also possible for those who are thinking of starting a business and/or providing services, even if they are still a sole trader. Under this condition, it is necessary to have the Australian Business Number (ABN), which is the registration of a company, similar to the CNPJ in Brazil.
Documents and information required
To apply to ABN as a sole proprietor, you need to have your hands full:
- Tax File Number;
- Contact information (telephone, e-mail);
- Details of commercial activity;
- Business address.
Even if you have all of the above, you still need to know if you really meet the requirements to be considered self-employed, provides a specific service, charges based on a budget previously submitted and approved by the client, has autonomy, does not work on an hourly basis, does not receive all their income from just one source, among others.
Many employers require a person to have an ABN even if they don't need to, which is considered fraudulent hiring and risks being penalized by the ATO, the Fair Work Ombudsman and state and territory revenue bodies and employment coverage agencies.
Before applying for registration, you need to provide the correct structure for your company, fulfill the legal requirements and, if the situation of your business changes, it is recommended to update or cancel the ABN.
When applying online, you will be asked questions to check whether you are eligible for registration. The applicant should be aware that fines of up to $ 12,600 can be imposed for each incorrect or false piece of information. Applicants can find out whether they are entitled to registration before starting their application on the government's official website.
With the ABN in hand, entrepreneurs must remember that when they provide a service, they will be responsible for issuing invoices and keeping track of them. It is also necessary to pay attention to the sequence of invoices, necessary when filing tax returns, length of service (students are only allowed to work 40 hours every two weeks) and amount received. If you exceed the annual ceiling of $75,000, you must apply to the GST (Goods and Services Tax), 10% tax on goods and services sold and consumed in Australia.
The ATO regularly reviews the people who have issued the ABN and can ask for proof at any time to make sure that the company is indeed genuine.
Are you ready to start your own business in Australia? And to find out more about exchanges, contact us!
