How to Get an ABN as a Tradie in Australia: Step-by-Step Guide

If you're going out on your own as a tradie, an ABN is the first thing you need. Without it, you can't legally invoice clients, and any client you do work for is required to withhold 47% of what they pay you. That's nearly half your income going to the ATO before you've even lodged a tax return.

Getting an ABN is free, takes about 15 minutes online, and you typically receive it immediately. Here's exactly how to do it and what it means for your business.

What Is an ABN?

An Australian Business Number (ABN) is an 11-digit number that uniquely identifies your business to the government and other businesses. It's how the ATO, your clients, and your suppliers know they're dealing with a legitimate business entity.

You display your ABN on every invoice you send. Clients use it to verify your business, claim GST credits on what they pay you, and meet their own reporting obligations.

Do You Actually Need an ABN?

You need an ABN if you're:

• Starting a trade business as a sole trader — whether plumbing, electrical, carpentry, painting, tiling, HVAC, landscaping, or any other trade
• Going subcontracting — working for other businesses or head contractors as a subcontractor
• Operating a partnership or company — each entity needs its own ABN

You generally don't need an ABN if you're an employee. If someone tells you that you need to get an ABN to work for them and they're controlling when, where, and how you work, there's a chance you're actually an employee rather than a contractor — which has different tax and super implications. The ATO has an employee/contractor decision tool at ato.gov.au that can help clarify this.

What You Need Before You Apply

Before you go to the ABN registration website, have these ready:

Your Tax File Number (TFN): Your personal TFN, issued by the ATO. If you don't have one, apply at ato.gov.au first (or at Australia Post with a 100-point ID check). Getting a TFN takes 1–4 weeks, so do this before anything else if you don't already have one.

Your personal details: Full legal name, date of birth, residential address.

Your business details:

• What type of entity you're registering (sole trader, partnership, company, trust)
• Your business address (can be your home address)
• The type of work you do — described in ANZSIC industry codes (you'll select from a list)
• Whether you expect to be entitled to an ABN (you must be carrying on an enterprise, not just employed)

Your business name (if you want to use one other than your own legal name): Note that getting an ABN doesn't register your business name — that's a separate step through ASIC. You can apply for an ABN under your own name and register a business name separately.

How to Apply: Step by Step

Step 1: Go to the ABR Website

The Australian Business Register is at abr.gov.au. Click "Apply for an ABN."

You don't need a myGov account to apply, but having one speeds up the process. You can also apply through myGovID (the digital identity app) if you have it set up.

Step 2: Select Your Entity Type

For most tradies starting out, this is Sole Trader. This means you're running the business as an individual — the business is legally you, your income is reported on your personal tax return.

Other entity types:

• Partnership: Two or more people running a business together
• Company: A Pty Ltd registered with ASIC (you need an ACN first)
• Trust: An entity that holds assets or runs a business for beneficiaries

If you're starting as a sole trader, select that and proceed.

Step 3: Provide Your Personal and Business Details

Enter your TFN, full name, date of birth, and address. The system verifies your identity against ATO records.

You'll be asked to describe your business activities using ANZSIC (Australian and New Zealand Standard Industrial Classification) codes. Search for your trade:

• Electricians: 2421 — Electrical Services
• Plumbers: 2212 — Plumbing Services
• Carpenters/builders: 3211 — House Construction; 3220 — Residential Building
• Painters: 3230 — Non-Residential Building; or 2230 — Painting and Decorating Services
• Tilers: 3319 — Other Construction Services
• HVAC: 2423 — Refrigeration and Air-Conditioning Services
• Landscapers: 0149 — Other Agriculture; or 2990 — Other Services to Buildings

Search by keyword if you're not sure — the lookup tool is reasonably helpful.

Step 4: Select a Business Start Date

The start date can be backdated up to a few months if you've already started trading. Choose the date you started (or plan to start) operating your business.

Step 5: Review and Submit

Review all your details, confirm the declaration, and submit. If your application is straightforward (sole trader with a valid TFN), the ABN is issued immediately and displayed on screen. Save or print this page — your ABN is shown here along with a confirmation.

You'll receive an email confirmation, and your ABN will be searchable on the ABN Lookup tool at abr.gov.au within 24–48 hours.

After You Get Your ABN

Register for GST (If Needed)

If your expected annual turnover exceeds $75,000, you must register for GST. You can do this at the same time as your ABN application or afterwards through the ATO Business Portal or myGov.

Once registered for GST, you add 10% GST to your invoices, collect it on behalf of the ATO, and remit it quarterly via your BAS. You also claim back the GST you pay on business expenses (materials, tools, fuel, etc.).

Many tradies register for GST voluntarily even if under the threshold, to claim back GST on major purchases like tools and vehicles.

Register Your Business Name (If Using One)

Your ABN doesn't give you the right to trade under a business name other than your legal name. If you want to trade as "Turner Electrical" rather than "Matt Turner," you need to register the business name through ASIC at asic.gov.au. Business name registration costs ~$42 for 1 year or ~$98 for 3 years.

Open a Business Bank Account

A dedicated business bank account keeps your business finances separate from personal. This makes BAS preparation, tax time, and general bookkeeping dramatically easier. Most banks offer basic business accounts for sole traders.

Set Up an Invoicing System

Now that you have an ABN, your invoices need to display it prominently. Every invoice you issue must include:

• Your business name
• Your ABN
• The date
• A description of the work done
• The amount charged
• If GST-registered: the GST amount shown separately, and the words "Tax Invoice"

Common ABN Questions from Tradies

Can I have more than one ABN?

Generally no — one entity gets one ABN. A sole trader has one ABN. If you also set up a company later, the company gets its own separate ABN. But you as a sole trader only ever have one.

Does my ABN expire?

No, but the ATO can cancel it if you're no longer carrying on an enterprise or if you fail to meet your obligations. Keep your ABN active by lodging tax returns and BAS on time and updating your details if they change (address, business structure, etc.).

What if I cancel my ABN?

You cancel your ABN if you stop trading or change structure (e.g., move from sole trader to company). Cancel it through the ABR portal. You can't use a cancelled ABN on invoices.

Do subcontractors need their own ABN?

Yes. If you're hiring subcontractors, they must provide you with their own ABN before you pay them. If they don't provide an ABN, you're required to withhold 47% from their payment under the no-ABN withholding rule — and remit it to the ATO.

What if I made a mistake on my application?

Update your ABN details through the ABR portal at abr.gov.au. You can update your business address, contact details, business activities, and GST registration status at any time.

The ABN Is Just the Start

Getting your ABN takes 15 minutes. What comes next — registering for GST, setting up a business bank account, getting insured, sorting your licences, and setting up a bookkeeping system — takes a bit more time but sets the foundation for a business that actually runs well.

The tradies who struggle financially are rarely the ones who can't do the work. They're the ones who treat the business side as an afterthought. The ABN is your starting point — treat the setup that follows it just as seriously.

Tradie Money AU helps Australian tradies get the business and financial basics right from day one. This article is general information only — check current requirements at abr.gov.au and ato.gov.au, as processes and thresholds can change.