ABN vs TFN: Which One Do You Really Need?

Understanding the difference between an ABN and TFN is essential for staying compliant in Australia’s tax system.

TFN (Tax File Number):

• Needed by individuals earning income from employment or investment

• Required for lodging tax returns

• Helps avoid higher tax withholding

ABN (Australian Business Number):

• Needed if you run a business, freelance, or invoice clients

• Enables you to register for GST

• Required to issue invoices legally

Common Scenarios:

• Employee only? Just a TFN.

• Side hustler or freelancer? You need an ABN.

• Earning interest/dividends? You’ll still need a TFN.

Godspeed Accountants can help you register correctly and ensure you meet all obligations, whether you're working casually, contracting, or launching your own business.