Setting up your ABN is free, takes about 15 minutes online, and is the first step to running a legitimate trade business. Here's exactly how to do it.
๐ In This Article
What is an ABN?
An Australian Business Number (ABN) is an 11-digit identifier for your business. You need one to invoice clients professionally, register for GST, and operate as a sole trader, partnership or company.
Do You Need an ABN?
If you're working for yourself โ even as a subcontractor โ you almost certainly need an ABN. Without one, clients are required to withhold 47% of your payment for tax purposes (called "no ABN withholding"). That's a painful way to get paid.
Step-by-Step: How to Apply Online
- Go to the ABR website โ Visit abr.gov.au and click "Apply for an ABN"
- Create a myGovID โ You'll need a myGovID account to lodge your application
- Choose your business structure โ Sole trader is the simplest starting point for most tradies
- Fill in your details โ Business activity, commencement date, contact info
- Submit and receive your ABN โ Usually issued instantly or within a few days
Sole Trader vs Company โ Which Is Right for You?
Sole Trader is simple and cheap to set up. You and the business are the same legal entity โ easy for most starting tradies.
Company (Pty Ltd) offers more legal protection and potential tax advantages as you grow, but comes with more admin and costs. Speak to an accountant before deciding.
What to Do After Getting Your ABN
- Register for GST if you expect to earn over $75,000
- Open a dedicated business bank account
- Get appropriate insurance (public liability is essential)
- Register your business name if trading under a name other than your own
- Start keeping financial records from day one
It's Free โ Don't Pay Anyone to Do It
Applying for an ABN is completely free through the official government website. Anyone charging you to "register your ABN" is taking your money for something you can do yourself in 15 minutes.
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