How to get an ABN for free

Not everyone can have an ABN. You're entitled to one if you're carrying on or starting an enterprise in Australia, making supplies connected with Australia's indirect tax zone, or you're a Corporations Act company (ABR: ABN entitlement (opens in a new tab)).

The ABR says there's no single test for a business, but lists what one looks like: significant commercial activity of a reasonable size, an intention to make a profit, repeated and systematic activity with records kept, and running like other businesses in the industry (ABR: ABN entitlement (opens in a new tab)).

If you haven't started trading yet, you should have taken some steps, such as setting up a website or social media account for the business, buying stock or equipment, getting insurance or licences, or quoting for work (ABR: ABN entitlement (opens in a new tab)).

1. Pick your structure. Being a sole trader is "the simplest and cheapest business structure": you're the only owner and legally responsible for the business, including its debts (ABR: Sole trader (opens in a new tab)). A company needs its ACN from ASIC before it can get an ABN (ATO: Business or company registrations (opens in a new tab)).
2. Open the application. Use the ABR's online application (opens in a new tab), or use the Business Registration Service (opens in a new tab) to apply for an ABN and a business name together (ASIC: Register a business name (opens in a new tab)). A registered tax or BAS agent can also apply for you (ATO: Business or company registrations (opens in a new tab)).
3. Answer the entitlement questions. The form asks questions to work out whether you're carrying on an enterprise (ABR: ABN entitlement (opens in a new tab)).
4. Add other registrations if you need them. You can apply for GST, pay as you go (PAYG) withholding and a business name at the same time. If the ABN is refused, those registrations don't go ahead either (ABR: Applying for GST, PAYG and other registrations (opens in a new tab)).
5. Save your confirmation. A successful application gives you the ABN straight away; print or save the confirmation. A reference number means the ABR is reviewing your application and aims to finish within 20 business days, with a letter within 14 days of approval (ABR: Applying for an ABN (opens in a new tab)).
6. Check it on the register. Once it's through, it shows on ABN Lookup (ABR: Applying for an ABN (opens in a new tab)). Look it up here to see the public details on the register.

You must register for GST in any of these cases (ATO: Registering for GST (opens in a new tab)):

• your GST turnover is $75,000 or more;
• you start a new business and expect your turnover to reach $75,000 or more in the first year;
• you're a non-profit with a GST turnover of $150,000 a year or more;
• you provide taxi or limousine travel, including ride-sourcing, whatever your turnover;
• you earn income through the sharing economy or digital platforms (for example, food delivery services or other platform-based work), where the ATO's sharing economy guidance has the detail;
• you want to claim fuel tax credits.

If you aren't registered, the ATO says to check each month whether you've reached the threshold or are likely to exceed it. You need an ABN first, and you have 21 days to register once you're required to (ATO: Registering for GST (opens in a new tab)). If none of these cases applies to you, registering is optional (ATO: Registering for GST (opens in a new tab)).

You must update your ABN details within 28 days of becoming aware of a change (ABR: ABN important facts (opens in a new tab)). If you stop, sell or close the business, cancel the ABN; cancelling also cancels its GST registration. Lodge outstanding returns first, and cancel PAYG withholding before the ABN (ABR: Cancel your ABN (opens in a new tab)).

The ABR also cancels ABNs it finds inactive, for example when no business income is reported or lodgments are overdue (ABR: ABR integrity (ABN cancellation program) (opens in a new tab)).