How to Get an ABN as a Sole Trader in Australia (It’s Free)
Quick answer
Applying for an ABN is free. Sole traders apply online through the Australian Business Register at abr.gov.au. You’ll need your tax file number, personal details and a description of your business. Many applicants get their ABN straight away, while others are reviewed within about 20 business days.
An Australian Business Number (ABN) is the 11-digit number that identifies your business to the government and to other businesses. If you’re starting a side hustle, going freelance or becoming a contractor, it’s usually your first step.
Are you entitled to an ABN?
You can get an ABN if you’re carrying on, or starting to carry on, a business in Australia. That generally means you’re working for yourself with the intention of making a profit, on a regular and organised basis.
You’re generally not entitled to an ABN if you’re:
- An employee: your employer withholds tax from your wages
- Doing a hobby with no intention of making a profit
- Working as a subcontractor on terms that make you an employee in practice
Tip: If a business tells you to get an ABN but sets your hours, supplies your equipment and pays you by the hour, you might really be an employee. That affects your super and leave entitlements, so check before you apply.
What you need before you apply
- Your tax file number (TFN)
- Your full name, date of birth and contact details
- Your business address (this can be your home)
- A short description of your main business activity
- The date you started, or will start, trading
- Whether you’ll register for GST
How to apply, step by step
- Go to abr.gov.au and choose to apply for an ABN.
- Select sole trader as your business structure.
- Answer the entitlement questions and enter your personal and business details.
- Choose whether to register for GST at the same time. You must if you expect turnover of $75,000 or more, or you drive for a rideshare service.
- Submit the application and note your ABN or reference number.
If your application is approved straight away, you’ll see your ABN on screen. If it needs checking, you’ll get a reference number and a decision within about 20 business days.
Watch out for paid ABN websites
Some private websites charge a fee to “help” you apply. They often look official, but they just submit the same free government form. Always apply directly at abr.gov.au.
Do you also need a business name?
If you trade under your own name, for example “Jane Smith”, you don’t need to register a business name. If you trade under any other name, such as “Smith Cleaning Services”, you must register it with ASIC. There’s a small fee for one or three years.
What to do after you get your ABN
- Open a separate bank account for business income and expenses.
- Start keeping records of every sale and business expense from day one.
- Set money aside for tax, as no one withholds it for you. See how much to set aside.
- Check the GST rules so you know when you must register. See our GST guide.
- Put your ABN on every invoice, or clients may have to withhold 47% of your payment for the ATO.
Outgrowing sole trader?
If your profit is growing, a company might save you tax and protect your personal assets. We can set one up for you.
Frequently asked questions
How much does an ABN cost?
Nothing. Applying for an ABN through the Australian Business Register is free.
Can I have an ABN and a full-time job?
Yes, as long as your business activity is genuine. Your business income is added to your wages in your tax return.
Do I need to renew my ABN?
No, your ABN doesn’t expire. You must keep your details up to date, and cancel it if you stop running the business.
Does having an ABN mean I must register for GST?
No. You only need to register for GST once your turnover reaches $75,000, or if you drive for a taxi or rideshare service.
This article is general information only, not tax, legal or financial advice. Check abr.gov.au or speak with a registered tax agent about your situation.
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