How to Get an ABN in Australia: 2026 Guide for Sole Traders and Freelancers

 

Person working on a laptop to register for an ABN in Australia

Last updated: June 2026  |  Reading time: 9 min

Before I started doing occasional freelance work on the side, I assumed an ABN was only for people running proper businesses — a shop, a company, something with staff. Then a client asked for my ABN to pay an invoice, and I realised I had no idea where to get one or whether I even needed one.

Turns out the application takes about ten minutes and it's free. The confusion around ABNs mostly comes from not knowing when you need one, what it actually does, and how it connects to tax. Here's the straightforward version.

What Is an ABN?

An Australian Business Number (ABN) is an 11-digit number that identifies your business or sole trader activity to the Australian Tax Office and other government agencies. It's issued by the Australian Business Register (ABR), which is administered by the ATO.

You use it to identify yourself when invoicing clients, registering for GST, claiming fuel tax credits, and dealing with government agencies. Unlike a company registration, having an ABN doesn't automatically create a separate legal entity — as a sole trader, you and your business are legally the same person.

ABN vs TFN — What's the Difference?

TFN

Tax File Number

  • For individuals in the tax system
  • 9 digits
  • Used by employers, banks, super funds
  • Stays private — don't share widely
  • Everyone needs one

ABN

Australian Business Number

  • For businesses and sole traders
  • 11 digits
  • Used on invoices, public-facing
  • Listed on the public ABR register
  • Only needed if running a business

You can have both — in fact, most self-employed people do. Your TFN handles your personal tax return. Your ABN handles your business activity, invoicing, and GST obligations.

Do You Actually Need an ABN?

You need an ABN if you're carrying on an enterprise in Australia. That's the ATO's language, and it covers more situations than most people realise:

  • Freelancers and contractors (graphic designers, writers, IT consultants, tradies)
  • Sole traders running any kind of business
  • Gig economy workers (Airtasker, Uber, Deliveroo — though each platform has different rules)
  • People selling goods regularly through markets or online platforms
  • Anyone invoicing clients for services rather than being paid as an employee
  • Landlords renting out property
The hobby vs. business line: If you sell handmade items occasionally or mow a neighbour's lawn for cash once in a while, that's generally a hobby and you don't need an ABN. The distinction comes down to whether you're doing it in a regular, organised, and profit-oriented way. If you're genuinely unsure, the ATO has an online tool at ato.gov.au to help you work it out.

If a client or business asks for your ABN before paying you and you don't have one, they're legally required to withhold 47% of your payment under the "no ABN withholding" rule. That money goes straight to the ATO. You can reclaim it at tax time, but it's a painful way to manage cash flow.

How to Apply — It's Free and Takes 10 Minutes

  1. 1
    Go to abr.gov.au The Australian Business Register is the official site. The application is completely free — if anyone charges you to apply for an ABN, it's a scam.
  2. 2
    Choose your business structure Most individuals apply as a sole trader. You can also apply for a partnership, company, or trust ABN — but those require separate registrations first.
  3. 3
    Provide your TFN and personal details You'll need your TFN, date of birth, and information about your business activity — what you do, when you started (or plan to start), and your business address.
  4. 4
    Select your business activity (ANZSIC code) You'll be asked to categorise your main business activity. Don't overthink this — pick the closest match. You can update it later if your work changes.
  5. 5
    Receive your ABN In most cases your ABN is issued immediately on screen and by email. Some applications are referred for review, in which case the ABR contacts you within 28 days.
No business name required: You don't need to register a business name to get an ABN. If you trade under your own legal name (e.g. "John Smith" rather than "JSmith Creative"), business name registration isn't necessary. If you want to trade under a different name, you'll need to register it separately with ASIC — that costs around $44/year.

GST — Do You Need to Register?

Having an ABN doesn't automatically mean you're registered for GST. These are two separate things. GST registration is only required if your annual business turnover exceeds $75,000 (or $150,000 for non-profit organisations).

If you're under that threshold, you have a choice:

  • Don't register: You don't charge GST on your invoices and don't claim GST credits on purchases. Simpler, especially if you're just starting out.
  • Voluntarily register: You charge GST on your invoices and can claim back GST on business expenses. Worth considering if your clients are businesses (they can claim the GST back anyway) or if you have significant business expenses.

🧾 GST & Invoice Calculator

Work out GST on your invoices and check if you need to register.

$60,000
Under $75,000 threshold — GST registration optional
$2,000

Invoice subtotal

$2,000.00

GST (10%)

$200.00

Total invoice

$2,200.00

GST registered businesses must lodge BAS (Business Activity Statements) quarterly or annually. Keep all tax invoices for purchases to claim GST credits.

What Goes on a Tax Invoice?

Once you have an ABN, your invoices need to include specific information — especially if you're registered for GST. A valid tax invoice must show:

  • The words "Tax Invoice" at the top
  • Your name (or business name) and ABN
  • The date of the invoice
  • A description of the goods or services
  • The GST amount (either separately stated, or a note that "the total includes GST")
  • The total amount payable

For invoices under $1,000, you don't need to include the buyer's details. For invoices of $1,000 or more, you'll need to include the buyer's name or ABN as well.

Free invoice tools: You don't need accounting software to send a proper invoice. The ATO's free myDeductions tool handles basic invoicing, or a simple Word/Google Doc template with the required fields is perfectly fine for most sole traders starting out.

Tax Obligations Once You Have an ABN

Getting an ABN doesn't change your personal tax — you still lodge a regular individual tax return each year. But your business income gets added to your personal income, and that affects your overall tax position.

A few things to be aware of:

  • No tax withheld from invoices: Unlike employment income, nobody withholds tax from your invoice payments. It's your responsibility to set money aside for your tax bill at the end of the year. A rough rule of thumb: put aside 25–30% of your net business income throughout the year.
  • PAYG instalments: Once your business income exceeds a certain threshold, the ATO will put you on a Pay As You Go instalment system, where you pay estimated tax quarterly rather than in one lump sum at the end of the year.
  • No super guarantee from clients: If you're a sole trader, clients don't pay super on top of your invoices (unlike employees). You're responsible for your own superannuation contributions.
  • Business expenses are deductible: Equipment, software, home office costs, professional memberships, and work-related travel can all be claimed as business deductions against your income.

Common Questions

Can I have more than one ABN? ▼
Generally no — one ABN per legal entity. As a sole trader you have one ABN. If you have multiple business activities, they all operate under the same ABN. If you set up a separate company or trust, that entity gets its own ABN.
Can I get an ABN if I'm on a working holiday visa? ▼
Yes, if you have the right to work in Australia. Working holiday visa holders (417 and 462) can apply for an ABN to do freelance or contractor work. Keep in mind your tax rate as a working holiday maker is different — 15% on the first $45,000 — and this applies to your business income too.
What if I stop my business — do I cancel my ABN? ▼
Yes, you should cancel it. Go to abr.gov.au, log in with your myGovID, and cancel the ABN. Leaving an ABN active when you're no longer in business can cause complications with the ATO and future government dealings. Make sure any outstanding BAS lodgements and tax returns are up to date before cancelling.
Is an ABN the same as a business name? ▼
No — they're separate. An ABN identifies your business in the tax system. A business name is a trading name registered with ASIC that lets you operate under a name other than your own legal name. You need an ABN to register a business name, but having an ABN doesn't automatically register a business name.
Do I need an accountant to apply for an ABN? ▼
No. The application at abr.gov.au is straightforward and free. Most sole traders apply on their own in under 15 minutes. An accountant can be helpful for setting up your bookkeeping and understanding your tax obligations once you're up and running — but the ABN application itself doesn't require one.
Disclaimer: This article is general information only and does not constitute financial, tax, or legal advice. ABN eligibility, GST thresholds, and ATO rules may change. Always refer to ato.gov.au or abr.gov.au for current requirements, or consult a registered tax agent for advice specific to your situation.

Comments

Post a Comment