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You get an ABN by applying online through the Australian Business Register (ABR). The application is free, and most businesses get their new ABN straight away.
What is an ABN?
An ABN is a unique 11-digit number that identifies your business for tax purposes and government dealings. Itโs issued by the Australian Taxation Office (ATO) through the Australian Business Register.
Think of your ABN as your business identity. It links your business to all tax registrations, business registrations, and payments with the government. Every registered business in Australia needs one to operate legally.
What is an ABN used for?
Here are the primary uses of an ABN:
- Sending tax invoices to customers and claiming GST credits.
- Registering for GST, PAYG withholding, and other tax registrations with the ATO.
- Registering a business name with the Australian Securities and Investments Commission (ASIC).
- Identifying your business to other businesses, the government, suppliers, and partners.
- Processing tax returns and payments, including BAS lodgement through a BAS agent or registered tax agent.
- Setting up an Australian domain name for your website.
Without an ABN, other businesses can withhold tax from payments to you at the top rate. So getting an ABN protects your income and establishes your business identity from day one.
Does everyone need an ABN?
No, not everyone needs an ABN. You only need one if you are running an enterprise in Australia โ that is, a business activity made for profit, which includes being a sole trader, partnership, company, trust, or joint venture.
You donโt need an ABN for a hobby or one-off sale. An Australian resident who earns only a salary or investment income doesnโt need one either. If youโre unsure whether you need an ABN, applying to the ABR is free, so thereโs no cost to check and make sure.
Top tip: You must register for GST within 21 days of reaching the $75,000 turnover threshold.
Is ABN registration free?
Yes, itโs 100% free to get your ABN. Applying through the ABR website costs nothing. Be very wary of any third-party sites or physical mail that charges a fee for the same service.
How to apply for an ABN
Here are the 4 steps it takes to apply for an ABN:
Step 1: Check if you already have an ABN
Use the ABN Lookup function to search for any old ABN linked to your legal name or company. If you have an existing ABN, you can reactivate it rather than apply for a new one. Youโll receive a refusal number if your application is declined because an existing ABN is already in use.
Step 2: Decide on your business structure
Choose the most appropriate business structure: sole trader, partnership, company, or trust. Your structure impacts your legal entity status, tax obligations, and liability. A sole trader, for example, trades under their own name (e.g. John Smith), while a company has a separate Australian company number and legal name.
To help you choose, weโve got plenty of information on the different types of business structures.
Step 3: Gather your information
Youโll need the following personal details and business info to complete the form:
- Your tax file number (TFN) and the TFN of any partners.
- Your legal name, date of birth, and home address.
- Your proposed business name and business address.
- A mobile number, email, and other contact details.
- Your Australian company number (ACN) if you plan on registering a company.
- The date you want your ABN to start, and a description of your proposed business activities.
- Details of any other registrations you need โ think GST or PAYG withholding.
Step 4: Complete the online application
Visit the ABR website and click โApply or reapply for an ABNโ. You can also apply through theย Business Registration Service, which will let you combine your ABN application with a registered business name, GST, and other business registrations, all in one form.
The online application asks for your ABN details, a description of your business activity, and your reference number from a previous registration. Most businesses get their ABN straight away, although some applications are referred for review and might take up to 28 days for a final outcome.
What to do after you get an ABN
Once you receive your new ABN and ABN certificate, update your tax invoices, contracts, and website with your ABN details. If you plan to trade under a name other than your own (e.g. not just โJohn Smithโ), you will need to register a proposed business name through ASIC. Check for existing trade marks before locking in your name using the IP Australia Trade Mark Search.
Itโs also a good idea to consider setting up additional registrations, such as GST, PAYG withholding, and payroll. The good news is you can manage all of these through the ABR website.
For more help running your business and handling these administrative requirements, reach out to a tax or BAS agent, and use accounting software to keep your registered business compliant from the get-go.
