ABN registration is free: you apply online through the Australian Business Register (ABR), answer a short set of eligibility questions, and, if your details can be verified, you receive your 11-digit ABN straight away. You only need one if you are carrying on a business or enterprise, and you should never pay a third-party website for the privilege.
An Australian business number (ABN) is the identifier most Australian businesses use on invoices, in dealings with government and when they register for GST. Many people ask "do I need an ABN" before they have sold anything, and the honest answer depends on whether you are actually running a business. This guide explains who is entitled, what to prepare, how to apply for an ABN, what happens next and how to cancel one. It is the narrow, procedural companion to our wider guide to starting a business in Australia, linked below.
Do I Need An ABN?
The Australian Government’s business.gov.au ABN page says not everyone needs one: you need to be running a business or other enterprise to be entitled. An ABN lets you do several practical things:
- Identify your business to customers, suppliers and government.
- Avoid PAYG tax being withheld from payments you receive.
- Claim GST credits and energy grants credits.
- Get an .au domain name.
- Register a business name with ASIC, which requires an ABN or an ABN reference number.
The ATO’s guidance on registering for an ABN gives a rule of thumb for who generally needs one. You probably need an ABN if you sell products or services directly to customers (the public or other businesses), find your own customers, and quote, invoice or set your own prices. A hobby that earns occasional money may not qualify either, though the ATO also says all business income must be reported even if it falls below the tax-free threshold.
| Situation |
Likely Need An ABN? |
| Freelancer or contractor who finds clients and sends invoices |
Generally yes, if you are carrying on a business |
| Sole trader selling products or services to the public |
Generally yes |
| Occasional hobby sales with no business intent |
Probably not entitled; check the eligibility questions |
| Company registered with ASIC that will trade |
Entitled, if registered under the Corporations Act 2001 |
| Partnership or trust carrying on a business |
Yes, the ATO says these must apply for one and use it for all business activities |
These are guides, not rulings. The ABR decides entitlement based on your answers.
Who Is Entitled To An ABN
Entitlement turns on carrying on an enterprise, and the ABR takes it seriously. Its application guidance warns that applying when you are not entitled can lead to prosecution or criminal charges, and that this extends to registering for GST and claiming GST refunds. An ABN can also be reviewed at any time. If it is, you must be able to show evidence that you started, or took steps to start, your business from the start date on your application.
That means you should apply when you are genuinely starting, not before you have any plan to trade. Evidence of real steps might include a business plan, quotes, invoices, a business bank account, a website or equipment purchases. Keep it in one folder in case you are asked.
Entitlement By Structure
- Sole traders are entitled to one ABN and must use it for all their business activities.
- Partnerships and trusts must apply for their own ABN and use it for all business activities.
- Companies are entitled to an ABN if they are registered under the Corporations Act 2001. A company not registered under that Act may still register if it runs a business in Australia. A company needs its ACN from ASIC first.
You can run any number of businesses or activities under one ABN if they share the same business structure. A different structure needs a separate ABN, according to the ABR.
What You Need Before You Apply
business.gov.au tells applicants to gather their information first and have ready your business structure, proof of identity, and details of your business activities and associates. The ABR application guidance adds that providing your tax file number (TFN) helps the government identify you and speeds up processing. If you lack some details you can still submit, but issuing the ABN is likely to be delayed.
| Item |
Why It Matters |
| Your business structure |
Sole trader, partnership, company or trust determines the questions asked and who must apply |
| Your TFN (and ACN for a company) |
Helps identify you and speeds up processing |
| Proof of identity details |
The ABR needs to verify who you are; incomplete details cause delays |
| Business activities and start date |
Describes what you do; your start date may be tested later |
| Associates (partners, directors, trustees) |
The ABR collects details of people connected to the entity |
| Business address and contact details |
Used for your public ABN record and correspondence |
On digital identity: the ATO says that once you have an ABN, you use a Digital ID (myID) and Relationship Authorisation Manager (RAM) to access its online services for business. The business.gov.au and ATO pages we read do not list myID as a condition of applying, so follow the prompts on the ABR application, which sets the current identity requirements. If you plan to use ATO online services after registration, setting up myID early saves time.
How To Apply For An ABN Step By Step
You can start an ABN application, save it and finish it later. To apply for ABN registration online, work through these steps.
| Step |
What To Do |
| 1 |
Go to the Australian Business Register (abr.gov.au) or business.gov.au and choose to apply for an ABN. |
| 2 |
Answer the entitlement questions honestly. The system uses them to decide whether you qualify. |
| 3 |
Enter your structure, identity details, TFN (or ACN for a company), activities, start date and associates. |
| 4 |
Choose any related registrations to apply for at the same time, such as GST or PAYG withholding. The ATO says you can register an ABN and tax registrations together. |
| 5 |
Submit. If successful you receive your ABN immediately. Save or print the confirmation. |
| 6 |
If you get a reference number instead, wait for the review and respond if the ATO contacts you for more information. |
| 7 |
Check your public record on ABN Lookup and correct any errors. |
You can also apply through a registered tax agent or BAS agent. The ATO lists this as an alternative to doing it yourself, and the agent may charge for their work. A paper application exists as well, and the ABR says it does not charge for online or paper applications.
If you are also setting up a name and company at the same time, the Business Registration Service can apply for several registrations together, including ABN, business name, TFN and GST. Our guide on starting a business in Australia sets out the full registration order.
What An ABN Costs And Which Sites To Avoid
business.gov.au states that registration is free through the Australian Business Register, and the ABR’s FAQs confirm it does not charge for applying online or on paper. The only legitimate costs are optional: a tax agent, accountant or bookkeeper who completes the application for you may charge their own fee.
Because ABN search results are crowded with paid services, treat any site that asks for a fee to "process" an ABN with suspicion. The government pages we reviewed direct applicants to the ABR itself and do not carry a specific warning about paid look-alike sites, so we cannot quote an official statement on them. The safe rule is to start from abr.gov.au or business.gov.au, check the web address ends in .gov.au, and never pay a fee to a site that says it is the ABR. If you want paid help, hire a registered tax agent or BAS agent and ask for the fee up front.
| Route |
Cost |
| Apply online yourself via the ABR |
Free |
| Paper application to the ABR |
Free |
| Registered tax agent or BAS agent |
Agent’s own fee, set by them |
| Unofficial website offering to register for you |
Avoid; you do not need to pay for the ABN itself |
How Long ABN Registration Takes
According to the ABR, a successful application gets the 11-digit ABN immediately when all information is complete and can be verified. If anything needs checking, manual processing can take longer.
| Outcome |
What You Receive |
Timing |
| Approved |
Your ABN on screen |
Immediate. A confirmation letter follows within 14 days after a review |
| Needs review |
A reference number |
Target review time is 20 business days; the ABR FAQs note manual processing can take up to 28 days |
| Refused |
A refusal number and letter |
Letter within 14 days giving reasons, your options and your review rights |
The two review figures differ slightly (20 business days on the ABR application page and business.gov.au, up to 28 days on the ABR FAQs), so plan for the longer one. You can check progress on ABN Lookup at any time, or ask the ABR directly.
ABN Vs TFN Vs ACN
These three numbers are often confused. They do different jobs.
| Number |
Issued By |
Who Has One |
What It Does |
| ABN (Australian business number) |
Australian Business Register |
Businesses and other enterprises |
A public 11-digit identifier for business dealings, GST and invoicing. It does not replace your TFN |
| TFN (tax file number) |
ATO |
Individuals; partnerships, companies and trusts get a business TFN |
Identifies you to the ATO for income tax. A sole trader’s individual TFN covers business and personal dealings |
| ACN (Australian company number) |
ASIC |
Registered companies |
Issued when a company is registered. You need it before applying for the company’s ABN |
The ABN is a public number, so anyone can look up its publicly available details on ABN Lookup. Your TFN is private and should be given only to the ATO, your employer, your bank and similar organisations with a legitimate reason.
After You Get Your ABN
Getting the number is the start, not the end. Check these items once it is issued.
- GST. You must register within 21 days once your GST turnover reaches A$75,000 (A$150,000 for non-profits), according to the ATO. Below that, registration is optional but means staying registered for at least 12 months.
- Business name. If you trade under anything other than your own name, register it with ASIC. You need your ABN (or an ABN application reference) to do this.
- Invoices. Show your ABN on invoices so customers do not need to withhold tax from payments to you.
- Online access. Set up myID and RAM to deal with the ATO online.
- Updates. You must notify the ATO within 28 days of becoming aware of changes, such as a new address, authorised contact or added or cancelled registrations. A change of business structure may need a new ABN.
How To Cancel An ABN
You should cancel when you close or sell the business, stop running it in Australia or change its structure. business.gov.au lists changing from sole trader to company, sole trader to partnership, or partnership to company as reasons to cancel. You cancel through the ABR website. The ATO notes you can also lodge form NAT 2955 or use a tax agent.
Before cancelling, finish your business obligations: lodge outstanding returns and activity statements, pay tax debts and finalise any GST or payroll registrations. Cancelling the ABN does not make those debts disappear. If you later restart, you generally apply again and the ABR will check your entitlement afresh.
Common Mistakes
- Applying before you are in business. You must be able to show you started, or took steps to start, from your stated start date.
- Using a paid middleman by accident. The ABN itself is free from the ABR.
- Leaving out your TFN. It speeds up identity matching, and missing details delay the ABN.
- Forgetting GST. An ABN does not register you for GST. That is a separate decision tied to turnover.
- Not updating details. Changes must be reported within 28 days.
- Keeping the old ABN after a structure change. A different structure may need a new ABN.
- Treating it as a licence. An ABN does not authorise you to work in a regulated trade.
Getting Help With Your Application
Many sole traders can apply for an ABN themselves if they prepare first. If you are choosing between sole trader and company, running a partnership, or dealing with GST and PAYG at the same time, an accountant is useful. Our lists of accountants in Sydney and accountants in Melbourne are a place to start. When comparing, ask whether the ABN is included in a fixed set-up fee and whether they are a registered tax agent.
For other local providers, browse the Sydney services hub or the Melbourne services hub.
Frequently Asked Questions
How to get an ABN as a sole trader?
Apply online through the Australian Business Register. Select sole trader, answer the entitlement questions, and enter your identity details, TFN, business activities and start date. Registration is free and, if your details can be verified, the ABN is issued immediately. Save or print the confirmation, then check your record on ABN Lookup.
Do I need an ABN to work as a freelancer or contractor?
Generally yes if you find your own clients, set prices and invoice for your work, because you are carrying on a business. An ABN also lets you avoid PAYG tax being withheld from payments you receive. If you are unsure, the eligibility questions on the application will tell you whether you are entitled.
How much does it cost to apply for an ABN?
Nothing. The ABR does not charge for online or paper applications. A tax agent or accountant may charge a fee if they complete the application for you. Avoid unofficial websites that ask you to pay for the ABN itself, and begin from abr.gov.au or business.gov.au.
How long does an ABN application take?
If all information is complete and verified, you receive the ABN immediately. Applications needing review get a reference number, with a target of 20 business days, though the ABR FAQs say manual processing can take up to 28 days. Refusals come with a letter within 14 days.
Can I apply for an ABN without a TFN?
You can submit without every detail, but the ABR says providing your TFN helps identify you and speeds up processing. Without it, issuing the ABN is likely to be delayed. If you do not have a TFN, you would need to apply for one first.
Is an ABN the same as being registered for GST?
No. The ABN identifies your business. GST is a separate registration required once your GST turnover reaches A$75,000 (A$150,000 for non-profit organisations), or immediately for taxi, limousine and ride-sourcing work. You can apply for both at the same time through the ABR.
What happens if I apply for an ABN and I am not entitled?
The application may be refused and you will receive a letter with the reasons and your review rights. The ABR also warns that applying when you are not entitled can lead to prosecution or criminal charges, including for GST registration and refund claims, so answer the questions accurately.
How do I cancel my ABN?
Cancel through the ABR website, or lodge form NAT 2955 or ask a tax agent. First finalise lodgments, activity statements and tax debts. Cancel when you close, sell or stop running the business in Australia, or change structure, for example from sole trader to company.
This guide is general information only, so confirm current requirements with the Australian Business Register, the ATO or your registered tax agent before you apply.
The Short Version
- ABN registration is free through the Australian Business Register, with no need to pay a third-party site.
- You are only entitled if you are carrying on a business or enterprise, and the ABN can be reviewed later.
- Prepare your structure, identity details, TFN, activities, start date and associates before you start.
- A complete application is usually approved immediately; reviews target 20 business days and refusals get a letter within 14 days.
- An ABN is not a TFN, an ACN or a GST registration, so check each separately.
- Update changes within 28 days and cancel your ABN when you close, sell or change structure.
