How do I get an ABN as a tradie in Australia?

You can get an ABN for free by applying online through the Australian Business Register (ABR), as long as you are carrying on or starting a genuine business. An ABN is an 11-digit number. Tradies use it on quotes and invoices so customers and head contractors know who they are paying.

Never pay a third-party website to "process" your ABN. The official application costs nothing, and some sites charge a fee for a form you can fill in yourself.

Who is entitled to an ABN?

You are entitled to an ABN if you are carrying on or starting an enterprise in Australia. The ABR describes an enterprise as a commercial activity of a reasonable size and scale, not a hobby. A tradie taking paid jobs, or about to start taking them, fits.

Applying when you are not entitled can have legal consequences, so be honest about what you do. If you are an employee on a normal wage, you do not need an ABN for that work. If you are not sure, ask your accountant before you apply.

Do I need an ABN to work as a tradie?

You do not have to hold an ABN to do paid work. But without one, businesses that pay you may have to withhold tax from the payment. We cover the rate and how to avoid it in invoicing without an ABN. For most subbies and sole traders, getting an ABN is the first practical step.

An ABN also lets you put your business on a proper tax invoice, which customers and head contractors usually expect.

How do I apply for an ABN as a sole trader?

Apply online through the ABR, using your own personal details. In short:

1. Check you are entitled (see above).
2. Decide your business structure. Most new tradies start as a sole trader. If you are weighing it up, read sole trader vs company for tradies.
3. Gather your personal details and your business activity, such as plumbing, electrical or landscaping.
4. Complete the online application and submit it.
5. Keep your ABN somewhere handy so you can add it to every quote and invoice.

Processing times can vary. If your application needs a manual check, it can take longer, so apply before you need the number rather than the day before your first job.

Should I register for GST at the same time?

Registering for an ABN and registering for GST are separate decisions. An ABN identifies your business. GST registration means you charge 10% on your sales and claim back the GST on your costs.

GST registration is compulsory once your turnover reaches the ATO's threshold, and optional below it. Our guide to when to register for GST has the numbers and the deadlines. Once you are registered, the BAS is how you report it.

What do I do once I have my ABN?

Put it on everything customers see. Then set up the habits that keep a new business tidy.

• Add your ABN to every quote and invoice.
• Open a separate bank account for the business, even as a sole trader.
• Keep every receipt and invoice. See how long tradies must keep records.
• Check you hold the licence and insurance your trade and state require.

Invogo puts your ABN on every invoice for you, and can verify an ABN when you add a client. The free plan covers 5 invoices or quotes a month with no card needed, which is plenty for your first few jobs. You can sign up here.

What is the difference between an ABN, an ACN and a business name?

An ABN identifies your business for tax and invoicing. An ACN (Australian Company Number) is a separate number that ASIC issues only to registered companies. A business name is the trading name you use, such as "Smith Plumbing", and is registered separately with ASIC. As a sole trader you can trade under your own name with just an ABN, but if you trade under any other name you need to register it.

A company has both an ACN and an ABN. A sole trader has an ABN and no ACN. Your ABN is the number that goes on every invoice either way.

What if my details change or I stop trading?

Keep your ABN details current. If your business name, address or structure changes, update the ABR. If you stop trading, cancel your ABN so you are not left with obligations on a business that no longer exists. A cancelled ABN can be dealt with through the ABR or your tax agent.

If you start a different kind of business later, such as moving from sole trader to a company, the new structure is a separate entity and applies for its own ABN.

This is general information, not advice. Check with your accountant or the ATO for your situation.