How to Get an ABN in Australia (Step-by-Step Guide)

Delivery rider on a scooter riding through a city street at night

If you have been offered work as a “contractor”, signed up for a delivery app, or want to start a side hustle, someone has probably asked you for an ABN. This guide explains how to get an ABN in Australia in plain English: what it is, who is allowed to have one, what you need before you apply, and the steps to follow on the official website. It also covers the traps that catch many working holiday makers and international students, like being paid as a contractor when you are really an employee.

Good news first: applying for an ABN through the government is free. You do not need to pay an agent or a “registration service” to get one.

Quick Summary

QuestionShort answer
What is an ABN?An 11-digit Australian Business Number that identifies your business
Who can get one?People running (or starting) a business or other enterprise in Australia
Who can’t?Employees, for work they do as an employee
CostFree through the Australian Business Register (ABR)
Where to applyabr.gov.au (or through a registered tax agent)
What you needYour TFN, proof of identity, business details and a start date
How long it takesOften instant; if checked, the ABR aims to review within 20 business days
GSTNeeded if turnover is $75,000 or more, or if you drive rideshare/taxi

What Is an ABN?

An ABN (Australian Business Number) is a unique 11-digit number that identifies a business or organisation to the government, other businesses and the public. Think of it as your business ID.

An ABN is not the same as a Tax File Number (TFN). Your TFN is your personal tax number and you keep it forever. An ABN sits on top of it when you run a business. You will need a TFN first, so if you don’t have one yet, read our guide on how to get a Tax File Number in Australia.

With an ABN you can:

  • Put your business number on invoices and quotes
  • Avoid having tax withheld from payments when you quote your ABN to the businesses that pay you
  • Register for GST and claim GST credits (if you need to)
  • Register an Australian (.au) domain name

If you work as a sole trader, payments you receive under your ABN usually come to you in full, with no tax taken out. That sounds nice, but it means you are responsible for setting money aside and paying your own tax later.

Do You Actually Need an ABN?

This is the most important question in the whole guide. Not everyone is entitled to an ABN. You can only get one if you are carrying on (or starting) an enterprise in Australia, such as a business.

You are likely an employee if…

The ABR is clear that employees are not entitled to an ABN for the work they do as employees. This includes jobs such as labourers, trade assistants and apprentices, even if the employer calls it “contracting”. An employer should not make having an ABN a condition of getting the job.

According to the Fair Work Ombudsman, signs that you may really be an employee include:

  • The business tells you how, when and where to do the work
  • You work set hours or shifts
  • The business supplies your tools and equipment
  • You can’t send someone else to do the work for you
  • You don’t carry any financial risk of making a profit or loss
  • You do the same job as the business’s employees

If this sounds like your job, you should be paid as an employee, with at least the minimum wage, super and leave. See our minimum wage in Australia guide for current pay rates.

You may be running a business if…

The ABR looks at several signs of a real business. There is no single test, but common signs are:

  • You sell goods or services and aim to make a profit
  • You do it repeatedly, not as a one-off
  • You run it in an organised way and keep records
  • You choose your own hours and methods, and you can work for several clients
  • You have relevant skills or knowledge for the work

Common examples for newcomers include freelance work (design, photography, web development, cleaning, tutoring), some trade work done on your own account, and gig work such as food delivery or rideshare driving through an app.

If you are not sure, use the ABN entitlement tool on the ABR website before you apply. Applying when you are not entitled can lead to serious trouble, including prosecution in some cases.

ABN Scams and Sham Contracting: What to Watch Out For

Sham contracting is when a business tells a worker they are an independent contractor, but in reality the work is set up like a normal job. Businesses sometimes do this to avoid paying employee entitlements like super, leave and penalty rates.

Being asked for an ABN and invoices does not make you a contractor. What matters is how the work is actually done. If you think you are in a sham arrangement, you can contact the Fair Work Ombudsman for free advice.

Also be careful of websites that look official and charge a fee to “register your ABN”. Some are private services that simply fill in the free government form for you. Always check that you are on abr.gov.au or business.gov.au before you enter your details.

What You Need Before You Apply

Gather these things first so the application goes smoothly. Depending on your situation, the ABR may ask for:

  • Your TFN – the application is processed faster when the ABR can identify you from your TFN
  • Proof of identity
  • Your business structure – most newcomers choose sole trader (you and the business are the same legal person)
  • The date you need the ABN from – usually the date you start business activities; it can’t be more than six months in the future
  • Your contact details – address, postal address, phone and email
  • Your main business activity – for example, food delivery, cleaning or graphic design
  • Where you will do business – your business location(s)

If you are applying as a company or with partners, you will also need details (and TFNs) of associates such as partners or directors, plus a company number if relevant. Most readers of this guide will be sole traders, which keeps things simple.

How to Get an ABN in Australia: Step by Step

Step 1: Check your entitlement

Go to the ABR website and use the entitlement tool. Answer the questions honestly about the work you plan to do. If the result says you are an employee, don’t apply.

Step 2: Choose your business structure

For most individuals doing freelance or gig work, sole trader is the usual choice. It is the cheapest and simplest structure. Partnerships, companies and trusts have more paperwork and extra costs, so get advice before choosing one of those.

Step 3: Start the online application

Click “Apply or reapply for an ABN” on the ABR website. You can also apply through a registered tax agent if you prefer someone to do it for you (they will charge for their time, but the ABN itself is free). You can save the online form and come back later if you need to find more information.

Step 4: Fill in your details carefully

Enter your personal details, TFN, contact details, business activity and start date. Make sure your name matches your official documents. Small mistakes are a common reason for delays.

Step 5: Decide on other registrations

At the end, the application lets you apply for other registrations, such as GST. Only register for GST if you must (see the next section) or if you have a good reason to do it voluntarily.

Step 6: Submit and save your confirmation

If your application is approved straight away, you will receive your 11-digit ABN immediately. Save or print the confirmation. If you get a reference number instead, the ABR needs to check something; it aims to review applications within 20 business days and will contact you if it needs more information. You can check ABN Lookup at any time to see whether your ABN is active.

If your application is refused, you will receive a refusal number and a letter explaining why, along with your review options.

Do You Need to Register for GST?

GST (Goods and Services Tax) is a 10% tax on most goods and services in Australia. Having an ABN does not automatically mean you must register for GST.

According to the ATO, you must register for GST if:

  • Your GST turnover is $75,000 or more (or you expect it to reach that in a year)
  • You provide taxi, limousine or rideshare (ride-sourcing) services, regardless of how much you earn
  • You want to claim fuel tax credits

This is why rideshare drivers need GST from their first trip, while for most freelance work the $75,000 turnover threshold is the key rule. The ATO’s GST registration page also lists income earned through the sharing economy or digital platforms (for example, food delivery) and points to its sharing economy guidance, so if you work through an app, check the ATO’s current guidance or ask a registered tax agent before you start. Once you have to register, you need to do it within 21 days.

If you register for GST, you must add GST to your prices, lodge business activity statements (BAS) and pay the GST you collect to the ATO. It is extra admin, so keep good records from day one.

Tax and Super When You Have an ABN

Income tax

When you work under an ABN, the businesses or apps that pay you usually don’t take tax out. You still have to pay tax on that income. Most people with an ABN need to lodge a tax return every year, even if their business made a loss or earned below the tax-free threshold.

A simple habit that helps: move a percentage of every payment into a separate savings account for tax. You can also claim deductions for genuine business expenses, such as part of your phone bill or equipment you use for work, as long as you keep receipts. A registered tax agent can tell you how much to put aside for your situation.

What if you don’t give your ABN?

If you supply goods or services to a business and don’t quote an ABN, the business generally has to withhold tax at the top rate from payments over $75 (excluding GST) and send it to the ATO. That’s another reason to get your ABN sorted before you start sending invoices, if you are entitled to one.

Superannuation

As a sole trader, you are responsible for your own super. Clients usually do not pay super on top of your invoices, so think about making your own contributions. One exception to know about: if you are a contractor paid mainly for your labour, the business may still have to pay super for you. The ATO has a tool to check this.

Keeping Your ABN Up to Date (and Cancelling It)

An ABN is linked to you for life, but you are only entitled to use it while you are running an enterprise. A few rules to remember:

  • Update your details within 28 days of any change, such as a new address or phone number
  • Keep lodging your tax returns (and BAS if you are registered for GST) so the ABR can see your business is active
  • If you stop running your business, lodge any outstanding returns and statements first, then cancel your ABN
  • If you leave Australia permanently and close your business, cancel your ABN as well

Also note that an ABN is not a business name. If you want to trade under a name other than your own (for example “Sunny Coast Cleaning” instead of “Jane Smith”), you need to register a business name separately with ASIC, and that does have a fee.

ABNs for Working Holiday Makers and International Students

Many people on temporary visas get an ABN for gig work or freelancing. A temporary visa does not stop you from having an ABN if you are genuinely running a business, but your visa conditions still apply to the work you do under it. If your visa has a limit on work hours or the type of work you can do, don’t assume ABN work is exempt. Check your own visa conditions on the Department of Home Affairs website, or ask a registered migration agent, before you start.

If you are on a working holiday, our working holiday visa guide explains the visa conditions in more detail.

Frequently Asked Questions

How much does it cost to get an ABN?

Nothing. Applying for an ABN through the Australian Business Register is free. Some private websites charge a fee to submit the same form for you, so always apply on the official site unless you choose to use a registered tax agent.

How long does it take to get an ABN?

Many people receive their ABN immediately after submitting the online form. If the ABR needs to check your details, you get a reference number, and it aims to finish the review within 20 business days.

Do I need an ABN for Uber Eats or DoorDash?

Food delivery platforms generally treat riders as independent contractors, so they usually ask for an ABN. Rideshare driving (carrying passengers) needs GST from the start. For food delivery and other app-based work, check the ATO’s current sharing economy guidance on GST before you start, because the ATO lists platform income on its GST registration page.

Can I get an ABN on a working holiday or student visa?

Yes, if you are genuinely running a business and you meet the ABN entitlement rules. You must still follow your visa’s work conditions.

Is an ABN the same as a TFN?

No. A TFN is your personal tax number. An ABN identifies your business. You need a TFN to apply for an ABN, and you keep both.

Can my employer ask me to get an ABN?

An employer should not make an ABN a condition of a job. If you work like an employee, you should be paid as an employee. Contact the Fair Work Ombudsman if you are unsure.

Final Thoughts

Getting an ABN is quick and free, but the real question is whether you should have one. If you are truly working for yourself, an ABN lets you invoice clients, work with delivery and freelance platforms, and grow your own small business. If you are really an employee, you are better off insisting on proper wages, super and leave.

The founder of Life in Australia Hub has lived in Australia since March 2013, and the best advice for newcomers is simple: use the official websites, keep your records tidy from day one, and set money aside for tax. Do that, and your ABN will work for you instead of against you.


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