What is the difference between an ACN and an ABN?
An ACN is your Australian Company Number, issued by ASIC the moment the company is registered — it identifies the legal entity. An ABN is your Australian Business Number, issued by the ATO, and it is what you use to trade, invoice, and register for GST. A company gets an ACN first and then applies for an ABN, which incorporates the ACN digits. Sole traders have an ABN but no ACN, because there is no company.
Do I need a Director ID in Australia?
Yes, and it must be obtained before you are appointed as a director. The Director Identification Number is a permanent identifier that stays with you for life, across every company you ever direct. It was introduced to stop illegal phoenix activity, and applying is done personally through Australian Business Registry Services — no one can apply on your behalf.
When does an Australian business have to register for GST?
Once your annual turnover reaches A$75,000, or A$150,000 if you are a non-profit. Registration is also mandatory from day one if you provide taxi or ride-sourcing services, regardless of turnover. Below the threshold it is optional — worth registering if you have significant input credits to claim, though it commits you to lodging BAS regularly.
Can a foreign resident set up an Australian company?
Yes, foreign residents can own an Australian company outright, but a Pty Ltd needs at least one director who is ordinarily resident in Australia. That resident director requirement is the practical hurdle for overseas founders, and it is a genuine legal responsibility rather than a formality — directors carry personal duties under the Corporations Act.
What is the company tax rate in Australia?
25% for base rate entities, meaning companies with aggregated turnover under A$50 million that earn no more than 80% of their income from passive sources. Everyone else pays 30%. Australia's dividend imputation system then allows franking credits to be passed to shareholders, so tax paid at company level is not taxed twice.