Applying for an Australian Business Number may seem simple at first. However, government portals, identity checks, and required business details often leave first-time applicants confused or having to restart the process.
And that’s completely normal. At Australian Business Magazine, we’ve helped thousands of Aussie business owners work through the registration process, and we know where things tend to go sideways.
In this article, we’ll cover:
- What an ABN is and why you need an ABN to operate legally
- Who’s eligible to register for an ABN in Australia
- Things to prepare before your ABN registration
- Step-by-step process of applying for an ABN
- What happens after you submit your ABN application
Keep reading to learn how to make the application process easier.
What Is an Australian Business Number? Do You Need One?
An Australian Business Number (ABN) is a unique 11-digit identifier that the ATO (Australian Taxation Office) assigns to your business. This way, the government, other businesses, and the public can recognise you as a legitimate operator.
Most businesses operating in Australia need one, and skipping it carries consequences. So, take a look at the details:
What an ABN Does for Your Business
Your ABN sits behind nearly every financial and legal process your business goes through in Australia. You’ll have to use it on tax invoices, BAS lodgements, supplier contracts, and government reporting. Beyond that, it lets you identify your registered business to government agencies, claim GST credits, and secure a “.com.au” domain name.
In general, businesses earning above $75,000 annually need this number to register for GST, even if you want to start a business in Australia from home. This is a legal requirement rather than just a practical one. Not to mention, larger clients and corporates often won’t work with suppliers who can’t provide an ABN on their invoices.
The Real Cost of Operating Without an ABN
Skipping your ABN registration can hit your cash flow directly. For example, if you don’t quote your ABN on an invoice, the payer can legally withhold 47% of your payment under Australian tax law and forward it straight to the ATO (and the ATO has no grace period on this one).
On top of that, operating without one blocks you from:
- Opening a business bank account
- Registering a business name
- Accessing online services tied to your business identity
The ATO can also flag your income as untaxed earnings for tax purposes, which creates a problem that may compound at the end of every financial year.
Who’s Eligible to Apply for an ABN?
Not everyone who wants an ABN is automatically entitled to one. The ATO runs you through a series of eligibility questions when you apply for an ABN, and your answers determine if your application gets approved or flagged for review.
Here’s more information on the eligibility.
Sole Traders and Companies: Who Can Register?
Most common business structures in Australia are entitled to register for an ABN. That includes sole traders, companies, partnerships, and trusts, though the steps each one takes differ.
For instance, sole traders can apply using their personal tax file number, which speeds things up considerably. Companies, on the other hand, need to register with ASIC first and get an Australian Company Number (ACN) before they can apply for an ABN.
If you’ve been operating as a sole trader and want to move to a company structure, note that you’ll need a new ABN too. Your old ABN doesn’t carry across to a new legal entity.
Can You Apply for an ABN as a Foreign Resident?
Non-residents can apply for an ABN if they carry on an enterprise connected to Australia’s indirect tax zone. In this case, the eligibility rules centre on your business activity, rather than your location.
That said, the process works a little differently. Australian resident applicants who include their tax file number in the ABN application tend to get approved instantly. Foreign residents without an Australian tax file can still apply, but the ATO may take up to 28 days to process it.
Do Trusts and Non-Profits Need an ABN?
Trusts need a separate ABN for each trust they operate, even if the trustee already holds their own. So if you’re running two separate trusts, that means two separate ABN applications.
Non-profits and charities can apply for an ABN and may also qualify for GST registration concessions. Any organisation making supplies connected to Australia’s indirect tax zone is entitled to an ABN, and registering early saves a lot of back-and-forth down the line.
What to Have Ready Before Your ABN Application
It’s best to have every document ready before you open the form, because a missing detail mid-application can delay your ABN. This is the information you need:
- Tax File Number: Your TFN speeds things up significantly. If you don’t have it, the ATO moves your ABN application to manual review, which can take around 28 days instead of minutes.
- Australian Company Number: Companies need their ACN ready before applying. This number helps identify your company during the registration process, so your application may remain incomplete without it.
- Business Address: A physical business address can be a home address or a registered office. Note that PO boxes aren’t accepted as a primary business address, so have your street address ready.
- Personal Details and Business Name: Have your legal name, date of birth, and planned business name on hand. If you’re a sole trader named John Smith trading under “Smith Electrical,” both names are important here.
- Contact Details for All Associates: For partnerships and companies, you’ll need the full contact details of every director or partner involved, including their individual tax file numbers.
From what we’ve seen across Australian business registrations, the tax file number is the one detail that causes the longest delays. That’s why it’s important to apply for a TFN early in the process to avoid setbacks.
How to Register for an ABN Online: Step-by-Step
Registering for an ABN online takes most people under 15 minutes if you have everything ready. It’s free and done entirely through the Australian Business Register’s online services.
This is how the process works.
Step 1: Head to the Business Registration Service
Before you do anything else, make sure you’re starting in the right place. A lot of people land on the old ABR website or third-party sites that charge a fee for a process the government offers for free. The actual portal is the Australian Business Register at business.gov.au, and that’s the only place you need to be.
The Business Registration Service is where all online application processes live now. It lets you handle multiple business registrations in one form, including your ABN, GST, and business name, which saves a second round of form-filling later.
Step 2: Verify Your Identity With MyGovID
Setting up MyID (formerly known as MyGovID) is a separate process that you need to complete before securely accessing the Business Registration Service online. The portal looks simple, but this step has its own setup process, so factor in an extra 10 minutes if you haven’t done it yet.
MyGovID is Australia’s digital identity app. You can download it on your phone, verify your identity using your passport or driver’s licence, and link it to your account before you start your online application. Company directors also need to set up RAM (Relationship Authorisation Manager) to act on behalf of their business through the government’s online services portal.
Step 3: Enter Your Business Details
This is where you fill in the core business details. Sole traders typically use their personal name as their legal business name unless they’ve registered a separate name with ASIC. Take, for example, if your name is John Smith and you haven’t registered a trading name, your ABN will simply be listed under John Smith.
So double-check every detail before moving forward. Errors in your business name, contact information, or registered name are the most common reasons ABN applications get delayed or sent for manual review.
Step 4: Choose Your Business Activity and Company Name
You’ll need to select an ANZSIC (Australian and New Zealand Standard Industrial Classification) code that matches your main income source. You also have to write a clear description of your business activity in the field provided.
Vague answers here can prompt a manual ATO review, which pushes your approval out by up to 20 business days. At the same time, if you’re registering a company name or business name, check the ASIC register first to confirm it’s not already taken by another registered business.
Step 5: Submit Your Application and Get Your ABN
Once everything looks accurate, submitting the online application takes only seconds. For most applicants, the ABN is issued instantly and appears on the public ABN Lookup register.
That said, not every application sails through. In case the ATO needs more information, you’ll receive a reference number instead of an ABN, and they aim to complete their review within 20 business days.
Worth Noting: The ATO doesn’t issue a physical ABN certificate. Your ABN simply appears on the public register, and you can confirm it’s active using the ABN Lookup tool at any point.
Your ABN Application Is In: What Happens Next?
Once your ABN application is submitted, it is reviewed by the Australian Business Register, which may approve it immediately or request further checks before issuing your number. Let’s see how to deal with the outcomes.
Approved Straight Away vs. Under Review: What’s the Difference?
An instant approval and a reference number might look like similar outcomes, but they mean very different things. Instant approval is when all your details match ATO records, and no further verification is needed. Basically, your ABN is live and searchable on the ABR website right away.
A reference number, though, means the ATO has flagged your application for manual review (that’s not a rejection, it’s just a delay). And applications under review can take up to 20 business days.
You can check your ABN details and application status on the ABR website at any point during that period. If your application is successful, a confirmation letter will arrive within 14 days.
What to Do If Your ABN Application Gets Rejected
A refusal number means your application was unsuccessful. Through our research into the ABN process, incomplete business activity descriptions often come up as the reason applications get flagged for manual review. So that’s the first thing to check before you dispute.
You have 60 days to dispute the decision, and it’s worth getting a registered tax agent or BAS agent (Business Activity Statement) to help you lodge the dispute correctly. Tax agents who work with ABN applications regularly can spot the exact reason your application was knocked back, which saves time on the resubmission.
Important Note: Remember to update any changed ABN details within 28 days of a change, because failure to do so can result in your ABN being cancelled.
Additional Registrations to Sort While You’re at It
Your ABN is the foundation, but depending on how you plan to run your business, there are a few other registrations you’ll likely need to sort alongside it. These are the main registrations you need to complete.
Business Name Registration and Australian Securities
If you plan to trade under any name other than your legal name, you need to register that business name with the Australian Securities and Investments Commission. Most sole traders and companies fall into this category, so it’s best to sort this out at the same time as your ABN application.
Registration costs $45 for one year or $104 for three years, paid directly to ASIC. If you’re running multiple businesses under different names, each one needs its own registered business name on the Investments Commission register.
Director ID: What It Is and Who Needs One
Director IDs are one of the newer requirements in Australian business registration, and plenty of people setting up companies still don’t know they need one. Any person becoming a company director must apply for a director ID through the Australian Business Registry Services before being appointed (and you can’t skip this step).
The director ID is a unique number that stays with you for life, even across multiple companies or if you resign and join another board later. For this, you have to apply using your MyGovID, and the whole process takes around five minutes. It’s free, simple to complete, and done entirely through the government’s secure online services portal.
GST, PAYG, and Other Registrations to Know About
Bundling your tax registrations with your ABN application is one of the easiest ways to avoid a second round of form-filling. While you’re in the Business Registration Service, we suggest ticking off GST and pay-as-you-go withholding (PAYG withholding) at the same time.
Register for GST within 21 days once your annual turnover reaches or is expected to exceed $75,000. Businesses earning above that threshold who don’t register for GST risk penalties, and they also miss out on claiming GST credits on their business expenses.
PAYG withholding registration is a separate requirement, and you’ll need it if you plan to pay employees or company directors a salary. You’ll find both under the same tax registration section of the form.
You’re One Step Away From Trading Legally in Australia
Getting your ABN sorted isn’t the complicated process most people build it up to be in their heads. You now know what an Australian Business Number is, who qualifies, what to prepare, and how to apply for an ABN step by step through the Business Registration Service.
Based on everything we’ve covered, the most strategic move is to bundle your ABN registration with your GST, business name, and PAYG registrations in one session. It keeps your tax registrations clean from day one and saves you from logging back in three separate times.
If you’re looking for more guides like this one to help you start a business in Australia, Australian Business Magazine covers topics such as registration through to scaling. They’re all written for Aussie business owners, so pay a visit to the website.
Frequently Asked Questions About ABN Registration
Still have a few questions? That’s completely normal. The ABN registration process throws up a handful of common sticking points. Here are the ones we get asked most often.
How Long Does ABN Registration Take?
For most applicants, the process takes under 15 minutes to complete online. If all your details check out, you’ll get your ABN instantly. However, if the ATO needs to review your application, it can take up to 20 business days.
Is It Free to Apply for an ABN in Australia?
Yes. Applying for an ABN through the Australian Business Register is completely free. If you come across a website charging a fee to apply for an ABN on your behalf, that’s a third-party service, not the government portal.
Do I Need an ABN to Start a Business in Australia From Home?
Yes. Even home-based sole traders and freelancers need an ABN to legally issue tax invoices and get paid without the 47% withholding tax applying to their payments.
What Is ABN Lookup and How Do I Use It?
ABN Lookup is a free public tool at the Australian Business Register website where anyone can search and verify registered ABN details. You can use it to check if your own ABN is active, or to verify the ABN of a supplier or contractor before working with them.
Can I Have More Than One ABN?
Each business structure needs its own ABN. For example, a sole trader and their company require separate ABNs. If you need a new ABN for a new structure, a registered tax agent can point you in the right direction.
