An ABN (Australian Business Number) is an 11-digit number that identifies a business to the Government, other businesses and the public. Registering is free. It is used when you work for yourself and sell your services. Having an ABN does not make you a contractor if in practice you work as an employee.
This guide is general information, not tax or legal advice.
Who can have one?
Anyone who runs a business or other business activity. Most contractors need one, but some are not entitled to it, such as people who work through temporary work agencies. The ABN does not replace the TFN.
Am I an employee or a contractor?
It is decided by the whole working relationship, not by the paper you sign:
- Usually points to a contractor: you have your own business and sell your services, you use your own tools and methods, you negotiate rates and conditions, and you can work for several clients at once.
- Usually points to an employee: the employer decides how, where and when you work.
According to the same business.gov.au page, these things do not make you a contractor:
- Having an ABN or sending invoices.
- The work being short, occasional or project-based.
- It being usual to hire that way in that sector.
- A written contract that calls you a contractor.
Telling an employee they are a contractor is called sham contracting and is illegal. Anyone who suspects it can go to the Fair Work Ombudsman, the public body for workplace rights.
What changes if I work with an ABN?
These are responsibilities published by business.gov.au:
- Tax. If you work as a sole trader, you personally pay tax on everything the business earns and you use your TFN. Above a certain amount there are instalment payments, normally every three months.
- No ABN. Whoever hires you can withhold tax at the highest rate if you do not give them an ABN.
- Retirement savings. A contractor who works for a specific result usually looks after their own superannuation. Sometimes a contractor counts as an employee for this purpose: it depends on the circumstances.
- Insurance. Whoever hires you does not usually cover sick leave or work accidents.
- Licences. These are usually at your own cost.
- Records. A sole trader keeps their financial records for at least 5 years.
- Liability. As a sole trader, it is unlimited: your personal assets answer for the debts of the business.
When does GST come in?
GST is the 10% tax on sales. According to business.gov.au, you must register as follows:
- With a turnover of A$75,000 or more, within 21 days of knowing you will exceed it.
- Whatever your turnover, if you do taxi trips or trips on platforms such as Uber or DiDi.
- Below that figure, registration is voluntary, but it brings obligations such as charging GST and lodging activity statements.
How do you register?
It is online, at the Australian Business Register. It asks for your type of business, proof of identity and details of the activity. This can happen:
- Approved: if everything is complete, you know when you finish.
- Refused: you get a number and a letter with the reason within 14 days.
- Under review: up to 20 business days, and the ATO may ask you for more details.
If your details change or you stop the activity, you must update the ABN within 28 days. With ABN Lookup, free and with no sign-up, anyone can see whether an ABN is active.
Do I need to register a business name?
To operate under a business name there is a national register, and you need an ABN first. It costs A$47 for one year or A$108 for three. The page does not make clear what happens if you operate under your own name.
Does it depend on my visa?
Yes, in two ways:
- Work limits. Each visa has its own conditions. How the visa works explains them. We have not checked them for self-employment.
- Tax rates. With a 417 or 462 visa, the law defines working holiday maker income as income from an Australian source, without limiting it to wages. That is our reading of the law, not an answer from the ATO. The rates are in the tax return guide.
What we could not confirm
- The ABR page on who is entitled to an ABN. We could not check it. Nor the Fair Work Ombudsman page.
- What counts as business activity for someone on a temporary visa.
- The withholding percentage without an ABN. The source says "the highest rate", with no figure.
- How the ATO treats someone with an ABN and a 417 or 462 visa, because we could not check its website.
Sources
Seen on 5 November 2026. They are official. The business.gov.au pages show no date.