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Starting a business

Do I Need an ABN? A Guide for Sole Traders & Freelancers

If you're planning to sell goods or services in Australia, you will need an Australian Business Number (ABN). Whether you're a freelancer or sole trader, it’s essential to understand ABN requirements so your business can operate legally.


Here, we’ll explain what an ABN is and how it works. We’ll also explain where to display your ABN and how to update or cancel your ABN.

What is an ABN?

An ABN is a unique 11-digit number that identifies your business to the government and other organisations. Think of it as your business's official ID. 

An ABN can be used to:

  • Identify your business when interacting with other businesses, government agencies, and the public.


  • Facilitate tax-related transactions, such as claiming Goods and Services Tax (GST) credits and lodging Business Activity Statements (BAS).
  • Streamline invoicing and payments by showing that your business is legitimate.


  • Simplify government interactions, including registering for GST or applying for other business-related registrations.

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Do I Have to Have an ABN?

Freelancers, contractors, and other business owners typically need an ABN.

If you’re unsure whether your activity qualifies as a business, ask yourself:

  • Are you aiming to make a profit?
  • Do you make regular sales?
  • Are you selling products online?

If you answered yes to any of these, you are probably running a business and need an ABN. 

If you’re confused about what type of business you operate and your tax obligations, head over to this guide by the Australian Tax Office (ATO).

The Benefits of an ABN

From simplifying tax time to boosting your professional credibility, here’s how an ABN can benefit your business:


  • Tax advantages: If you hold an ABN, you can register for GST when you hit the $75,000 threshold and claim business expenses as tax deductions. Plus, you can manage PAYG payments if you have employees.


  • Invoicing customers: Without an ABN on your invoices, clients can withhold up to 46.5% of your payment. That's nearly half your hard-earned money in someone else's pocket!


  • Credibility: Sharing your ABN with suppliers, partners, and customers shows that you’re a professional. An ABN also allows you to purchase an official ‘.com.au’ domain name.
  • Government support: Government grants, contracts, and other business support services usually ask for an ABN.

How Do I Get an ABN?

Getting an ABN from the Australian Tax Office (ATO) is straightforward for freelancers and sole traders, but you'll need to have a few things organised before you apply:

  • Tax File Number (TFN): Your TFN is required to link your ABN to your tax records.


  • Previously Held ABN: If you’ve had an ABN before, you’ll need to provide its details.


  • Date ABN Is Required: This is the date you plan to start business activities, which cannot be more than six months in the future.


  • Entity Legal Name: This could be your business name or, if you’re a sole trader, your own name.


  • Authorised Contacts: This includes a registered tax or BAS agent if they’re authorised to manage your ABN information.


  • Business Contact Details: Provide your address, postal address, email, and phone number.


  • Business Activity: List your main source of income, such as agriculture, construction, investment, or manufacturing.


  • Business Locations: List all physical premises where your business operates.

Not comfortable doing it yourself? A registered tax agent can handle the whole process for you.

Where Do I Put My ABN?


Once you receive your ABN, you should add it to your business documents, especially invoices. Usually, an ABN is placed at the top or bottom margin, alongside your contact details. Accounting software like QuickBooks Online makes it easy to add your ABN to your estimates, invoices, and sales receipt templates.

When Do I Need an ABN  to Be Updated? 

It’s important to keep your ABN details current to stay compliant with legal and tax obligations.


An ABN should be updated whenever your business details change. The number will remain the same, but it will be associated with your new details. You should update your ABN if you are changing your business name, address, contact details, ownership, or structure.

When Do I Need an ABN to be Cancelled?


If you stop freelancing and no longer need your ABN, you need to cancel it. Likewise, if you're closing your business, you should cancel your ABN through the Australian Business Register – just make sure you've settled any outstanding debts first. Owing taxes is one of the more common debts that might need to be settled.

Do I Need an ABN or an ACN?


It’s easy to be confused about ABNs and ACNs (Australian Company Numbers) – they come from different organisations and serve different purposes.


The Australian Securities and Investments Commission (ASIC) handles ACNs, while the Australian Business Register manages ABNs.  Freelancers, sole traders, and most businesses only need an ABN (11 digits) – not an ACN. However, you’ll need both if you're running a company, starting with the ACN.



Secure an ABN to Run Your Business

Getting an ABN is a crucial step in setting up your Australian business. An ABN is more than a compliance requirement – it makes it easier to conduct business smoothly and professionally. Once you've got your ABN from the Australian Tax Office, you can focus on what really matters: growing your business.


More information can be found in our guides to starting a business and becoming a freelance accountant.

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