What Are the Steps to Register for an Australian Business Number (ABN)?

February 5, 2025

If you’re planning to start a business in Australia, one of the first steps you’ll need to take is registering for an Australian Business Number (ABN). The ABN is an 11-digit unique identifier issued by the Australian Business Register (ABR) and is essential for dealing with the Australian Taxation Office (ATO), invoicing, and conducting business legally.

This guide will walk you through the steps to register for an ABN, ensuring you understand the process and the requirements before you begin.

Why Do You Need an ABN?

Before diving into the registration steps, it’s important to understand why an ABN is necessary. An ABN allows you to:

  • Legally operate as a business in Australia
  • Identify your business to government agencies and other businesses
  • Claim Goods and Services Tax (GST) credits (if registered for GST)
  • Avoid having other businesses withhold tax at a higher rate when paying you
  • Register for various tax obligations, including GST and Pay As You Go (PAYG) withholding
  • Secure an Australian domain name (.com.au or .net.au)

If you operate as a sole trader, partnership, company, or trust and engage in business activities, you’re generally required to have an ABN.

Step 1: Determine Your Eligibility for an ABN

Not everyone can apply for an ABN, so the first step is confirming your eligibility. You can apply if you:

  • Are carrying on or starting a business in Australia
  • Are a foreign business making sales in Australia
  • Are a sole trader, company, partnership, or trust that meets the business activity criteria

If you only plan to work as an employee (rather than running your own business), you do not need an ABN.

Step 2: Gather the Required Information

To complete your ABN application efficiently, have the following details ready:

  • Business structure: Decide whether you are a sole trader, partnership, company, or trust.
  • Business name: If you’re using a name other than your own (for sole traders), you’ll need to register it with the Australian Securities and Investments Commission (ASIC).
  • Tax File Number (TFN): Sole traders must provide their TFN, while companies should provide their company TFN.
  • Australian Company Number (ACN) or Australian Registered Body Number (ARBN): If applying as a company, you’ll need an ACN or ARBN, which you can obtain from ASIC.
  • Business location and contact details: Provide your business address, phone number, and email.
  • Business activity details: Outline the nature of your business, including the industry you operate in.
  • Authorised contact details: If someone is applying on your behalf, such as an accountant, their details must be included.

Step 3: Apply for an ABN Online

The simplest way to apply for an ABN is online via the Australian Business Register (ABR) website (https://www.abr.gov.au). The application is free and usually takes about 15 minutes.

How to Apply Online:

  1. Visit the ABR website and navigate to the ABN application page.
  2. Select “Apply for an ABN.”
  3. Answer the eligibility questions to confirm you qualify.
  4. Enter your business details, including your TFN and business structure.
  5. Provide a description of your business activities (e.g., retail, consulting, construction).
  6. Submit the application and wait for confirmation.

If all information is correct, your ABN is issued immediately. However, if further checks are needed, the process may take up to 28 days.

Step 4: Receive and Review Your ABN

Once your application is approved, you will receive:

  • Your ABN number
  • Confirmation from the ABR
  • Instructions on how to update your ABN details if needed

Ensure your details are accurate and update them if necessary through the ABR website.

Step 5: Register for Other Business Obligations

Having an ABN does not automatically mean you are registered for other business-related obligations. Consider the following additional registrations:

1. Goods and Services Tax (GST)

  • Required if your annual turnover is $75,000 or more ($150,000 for non-profit organisations).
  • GST registration allows you to charge GST on sales and claim GST credits on purchases.

2. Pay As You Go (PAYG) Withholding

  • If you plan to employ staff, you must register for PAYG withholding to deduct tax from employee wages.

3. Business Name Registration

  • If you are not trading under your personal name, register your business name through ASIC.

4. Australian Business Account

  • This account helps manage interactions with different government agencies.

Step 6: Keep Your ABN Details Up to Date

You’re required to update your ABN details if any of the following change:

  • Business address or contact details
  • Business name
  • Business structure
  • Business activity

Failure to update your details could result in your ABN being cancelled.

Step 7: Understand ABN Renewal and Cancellation

Unlike some registrations, an ABN does not expire. However, it can be cancelled if:

  • You cease trading or change your business structure
  • The ATO or ABR determines that you are not operating a business
  • You fail to update your details for an extended period

To cancel an ABN, visit the ABR website and follow the cancellation process.

Common Mistakes to Avoid When Registering for an ABN

When applying for an ABN, ensure you avoid these common mistakes:

  • Providing incorrect information: Double-check details such as your TFN and business address.
  • Choosing the wrong business structure: Your business structure affects tax obligations, so select the correct one.
  • Not registering for GST when required: If your turnover is over $75,000, GST registration is mandatory.
  • Failing to update your ABN details: Keep your details up to date to avoid issues with the ATO.

Final Thoughts

Registering for an ABN is a straightforward process that sets your business up for success in Australia. By following these steps—determining eligibility, gathering information, applying online, and keeping your details up to date—you can ensure your business operates smoothly and legally.

If you’re unsure about any part of the process, seeking advice from a tax professional or accountant can be beneficial. Ready to register? Head over to the ABR website and get started today!