Task C1.2 Applying for an ABN as a sole trader

Step 1 of 1

Your new business is called Quik Chicken. Apply for an ABN using the ATO application form.

You are setting up a business called Quik Chicken which will sell tasty chicken and other snack products. The business is to be situated in a large, modern shop at 123 High Street, Newtown.

There are two ways of getting an ABN for your business. You decide to use the form option because you do not have access to a computer at your shop or home. This will change once you get the business up and running.

First, download the ABN application form for applying for an ABN registration as a sole trader.

As you fill in the form, use the information about your business to help you to fill in the details accurately. You will need to place an 'X' in all applicable boxes and fill in various parts. Use your own name and your address for the business.

Page 1   Are you entitled to an ABN?

  • You are running the business in Australia and intend to make a profit.
  • You have completed a business plan.

Page 2   Section A: Sole trader information

  • Fill in the information needed to complete your personal details and trading name (questions 1 and 2).
  • The business has only one name (question 3).
  • The sole trader has the TFN 123 456 789 (question 4).

Page 3   Section B: Phone and address details

  • Fill in questions 5, 6, 7 and 8. You will need to make up some of the information required to complete these questions.

Page 4   Section C: Contact details

  • You decide to have your accountant Janie Smith as an authorised contact person. Make up the information to fill in questions 9, 10 and 11.

Page 5   Section D: Reason for application

  • This is a new business and you have registered the business name.

Page 6   Section E: Business activity details

Use the following information to fill in questions 13–19.

  • You need an ABN from today and the business will continue for the foreseeable future. The business will only operate from one location. It will be in your home state or territory.

Remember the name of the business and try to think of how you would answer questions 17, 18 and 19.

Page 6   Section F: Taxation details

Use the following information to fill in questions 20 and 21.

  • You are an Australian resident for tax purposes and you do not want to register for anything under question 21.

Page 7   Section G: Goods and services tax (GST)

Use the following information to fill in questions 22–28.

  • The business needs to register for GST. Use today's date and make a guess at how much Quik Chicken will earn in sales revenue in a year. You intend to account for GST on a cash basis and you will not import goods into Australia.

Page 8   Section H: Fuel tax credits

  • The business does not own a motor vehicle.

Page 9   Section I: Pay as you go (PAYG) withholding

Use the following information to fill in questions 33–38.

  • The business will employ a number of people to work in the shop, preparing, cooking and serving the various fast food products it sells. You will employ employees on a full-time and part-time basis. The wages bill will be approximately $80,000 per year. In future you will lodge all of your forms electronically. The business will print its own payment summaries for its employees. Answer question 38 with 'No'.

Page 9   Section J: Financial account details

Use the following information to answer question 39.

  • The business banks with the ABC Bank; the BSB code is 103-338; the account number is 123 456 789; you hold the account in your own name.

Page 10   Section K: Declaration

  • Make sure you sign the form.

Final task

Reflect on these points, then print them or email them to your teacher.

How hard did you find it to fill in the form? Consider some people who might have problems completing the form. List some people you might go to for help.

  • Fact 10

    In 1936, at the request of the Australian Wool Growers Council, a wool tax was imposed to help the production of wool and to extend the use of wool throughout the world. It was levied at 6d (about 5c) per bale on all sales of shorn wool produced in Australia.

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