Apply for an ABN: free online steps for Australian small business owners

Learn how to apply for an ABN and get your business up and running.

11/1/20266 min read

Old brick buildings and shops line a sunny street
Old brick buildings and shops line a sunny street

What Is an ABN and Why Do You Need One?

An Australian Business Number (ABN) is a unique 11-digit number used to identify your business when dealing with customers, suppliers and government agencies for tax and legal purposes.

Whether you're starting a small business, working as a sole trader or running a company, an ABN can make managing your business easier.

Some of the main reasons for having an ABN include:

  • Sending invoices: Include your ABN on invoices when charging customers

  • Open business bank accounts: Banks require an ABN for business accounts

  • Claim business tax deductions: Essential for legitimate business expenses

  • Registering for GST: You'll generally need an ABN to register for GST when your business's annual GST turnover reaches $75,000 or more.

  • Registering a business name: An ABN is generally required when registering a business name with the Australian Securities and Investments Commission (ASIC).

  • Register an Australian business domain: Having an ABN can help you meet the Australian presence or eligibility requirements for registering certain Australian domain names.

Before You Apply for an ABN

You can apply for an ABN if you're starting or running a genuine business in Australia. However, simply earning extra money from a hobby doesn't automatically make you eligible. The Australian Business Register (ABR) looks at whether you're genuinely carrying on, or taking steps to start, a business.

How Much Does an ABN Cost?

Good news! Applying for an ABN is completely free through the official Australian Business Register (ABR) or Australian Government's Business Registration Service.

You don't need to pay a third-party website or agent to submit your application. You can complete the process yourself online.

5 Things to Prepare Before Applying for an ABN

Getting your details ready before you apply can make the process much easier. It may also help avoid delays if the Australian Business Register (ABR) needs more information.

Here are five things to check before starting your application.

1. Company Details (If Applicable)

If you're applying for an ABN for a company, you'll need to register it with ASIC first.

Once registered, your company will receive an Australian Company Number (ACN). You may also need your Australian Registered Body Number (ARBN) if you're applying on behalf of a registered body.

Company directors must also have a Director ID. This is a separate requirement and doesn't apply to sole traders.

2. Your Business Details

Have some basic information about your business ready, including:

  • Business name: Your registered business name, company name or personal name, depending on your structure.

  • Main business activity: The main product or service your business will provide.

  • Business address: The physical address where your business operates, if applicable.

  • Contact details: Your business phone number and email address.

3. Your Tax File Number (TFN)

Providing the requested tax information can help the ABR verify your details and process your application. If information is missing, your application may take longer. You need:

  • Your TFN (if you are an Australian resident over 18)

  • Business associates' TFNs (directors, partners, or key stakeholders)

4. Contact and Associate Details

Depending on your business structure, you'll need to provide details about the people involved in your business.

This may include:

  • Partners: Details of the people running a partnership.

  • Company directors: Details of the company's directors.

  • Trustees: Details of the trustee or trustees.

  • Authorised contact: Details of the person authorised to deal with the ABR on behalf of the business, if applicable.

The ABR may ask for information such as names, dates of birth, addresses, contact details and tax information.

5. Your Business Start Date

You'll need to provide the date you started, or expect to start, your business activities.

This doesn't necessarily have to be the day you make your first sale. It could be when you begin taking genuine steps to establish your business, such as buying equipment, purchasing stock or advertising your services. You must choose a date within six months of your application.

How Do I Get an ABN?

You can apply for an ABN online yourself or through a registered tax agent. Both methods use the same government system.

Apply Online yourself:

  • Cost: Free through the Business Register Service.

  • Processing time: Instant approval when you provide TFNs

  • Best for: Sole traders and people with straightforward business structures.

For most people starting a small business, applying online themselves is a simple and cost-free option.

Use a tax agent:

  • Cost: The agent may charge a fee for their services.

  • Processing time: Same as do-it-yourself

  • Best for: People who want professional guidance or have a more complicated business structure.

What Happens After You Apply for an ABN?

Once you submit your application, the Australian Business Register (ABR) will assess your details. If you provide your tax file number, you'll typically receive your ABN within minutes of submitting.

There are three possible outcomes:

1. Your Application Is Approved

If your details can be verified and your application is successful, you'll usually receive your 11-digit ABN immediately.

Once approved, remember to:

  • Save or print your ABN confirmation.

  • Check your details on ABN Lookup.

  • Register for GST if your business needs to.

  • Register a business name if you're trading under a name other than your own.

  • Set up PAYG withholding if you employ staff and need to withhold tax from their wages.

2. You Receive an Application Reference Number

Sometimes the ABR needs to check your details or ask for more information before approving your application. If this happens, you'll receive a reference number rather than an ABN.

The ABR aims to review these applications within 20 business days. While you're waiting:

  • Keep your reference number handy.

  • Respond if the ABR contacts you for additional information.

  • Check your application status through the government application service.

If your application is approved, the ABR will send you a confirmation letter within 14 days.

3. Your Application Is Unsuccessful

Not everyone is eligible for an ABN. If your application is refused, you'll receive a refusal number and a letter explaining why.

If this happens:

  • Read the letter to understand the reason for the refusal.

  • Check whether you meet the ABN eligibility requirements.

  • Request a review if you believe the decision was incorrect.

  • Reapply if you've addressed the issues with your application.

What Other Business Registrations Do You Need?

Getting an ABN is often just the beginning. Depending on your business, you may also need to register for GST, PAYG withholding or a business name.

You can apply for several of these through the Business Registration Service.

Ready to Apply for Your ABN?

Getting an ABN is an important step when starting a business in Australia. The application is free, and you can complete it online yourself and receive your ABN on the same day.

FAQs on Applying for an ABN

Is getting an ABN free in Australia?

Yes. Applying for an ABN through the official Australian Business Register is completely free. You don't need to pay a third-party website to submit your application.

Do I need an ABN if I'm selling products online?

If you're operating an online store as a genuine business, you may be eligible for an ABN.

However, occasionally selling personal belongings online doesn't automatically mean you're carrying on a business.

Can I get an ABN if I earn less than $75,000?

Yes. The $75,000 threshold relates to compulsory GST registration for most businesses, not ABN eligibility.

You can apply for an ABN if you're genuinely starting or operating an eligible business, even if you expect to earn less than $75,000.

Can I apply for an ABN without a business name?

Yes. You can apply for an ABN using your own legal name.

You only generally need to register a separate business name if you intend to trade under a name other than your own legal name.

Can I cancel my ABN if I stop operating my business?

Yes. If you stop operating your business and are no longer entitled to an ABN, you should cancel it through the Australian Business Register.

You should also make sure any outstanding tax and reporting obligations are addressed.

Do I need an accountant to apply for an ABN?

No. Most straightforward ABN applications can be completed online without an accountant.

However, if you're unsure which business structure to choose or have more complicated tax circumstances, getting professional advice may be worthwhile.

Can I have an ABN and still work as an employee?

Yes. You can work as an employee and operate a separate business as a sole trader, provided your business activities are genuine and you meet the relevant requirements.

Disclaimer: This article provides general information for Australian business owners and people considering starting a business. It isn't financial, legal or tax advice. Registration requirements can vary depending on your circumstances. Always check the latest information with the ATO, ABR or a qualified professional.

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