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Everything you need to know about Australian Business Numbers

Everything you need to know about Australian Business Numbers


A Business Number (ABN) is a unique 11-digit number that identifies your business or organisation to the government and community. In Australia, one of the first things small businesses need when they start up is an Australian Business Number (ABN).

Your ABN is linked to your business name, trading as (T/A) name and Australian Tax File Number (TFN). Your ABN is used for all dealings with the ATO, including lodgement of annual tax returns. It also allows you to apply for an Australian Business Number (ABN) online.

Company registration in Australia involves setting up a company as its own legal entity, which lets you conduct business throughout Australia. You can also make use of other privileges, such as corporate tax rates or limited liability.

Company123 offers quick and simple ABN registration as tax agents at our ABN registration form.

The following points can guide you on whether you currently need an ABN and answer various other related queries.

What is a Tax File Number?

The tax file number (TFN) is a unique identifier the Australian Taxation Office (ATO) gives to individuals, allowing them to pay income tax. If you're employed, your employer will ask for it as part of their payroll process. If you are self-employed or have investments that earn interest, then you must register for a TFN yourself and provide it when filing an income tax return.

You can apply for a TFN online at the ATO's website. Alternatively, if you prefer not to use online services or are unable to do so due to a disability or lack of access to technology, then there are other options available:

  • Apply in person at any Australian Taxation Office (ATO) location;
  • Contact the ATO on 13 28 61; or
  • Complete an Application for Enrolment form (NAT 767), which can be downloaded from the ATO website and sent via mail or fax back through Australia Post.

What is GST?

Goods and services tax (GST) is a tax of 10% on the sale (supply) of most goods and services consumed in Australia. In general, an organisation that is required by law to 'register' for GST purposes:

  • Goods and services tax (GST) is a consumption tax which is levied on the supply of most goods and services in Australia.
  • GST is payable by the consumer at the time of making an acquisition and can be claimed back from the government if it is used to acquire taxable supplies or investments.
  • There are two types of GST: input taxed and non-input taxed. Input taxed includes rent, property taxes, financial services, insurance premiums and financial account maintenance fees. Non-input taxed includes food, alcohol & tobacco products, health & medical services etc.

Your organisation may be required by tax laws to pay GST on any goods and services it supplies.

For further information see the ATO website.

ABNs Explained:

In Australia, one of the first things small businesses need when they start up is an Australian Business Number (ABN). They are also known as tax file numbers or Australian Taxation Office numbers. Businesses who do not have an ABN will be unable to issue invoices or take credit card payments for goods and services rendered, which could make it difficult for them to run their businesses.

What Is An ABN? 

The Australian Business Register (ABR) is a database that contains information about every company and business entity in Australia. The ABR lists all registered businesses and allows them to apply for various government benefits so that they can trade legally within Australia.

The primary role of this register is to ensure that all registered businesses pay their fair share of taxes while supporting compliance with industry standards and regulations such as GST reporting requirements.

Registering for an Australian Business Number

If you need to register for an Australian Business Number (ABN), you will need to do so at the Australian Business Register (ABR) website. This is the official place to apply for an ABN. To apply, you will need:

  • The name of your business (this can be a trading name or even something as simple as 'Ltd' if it's a limited company).
  • Your TFN and ABN numbers if they're already valid. If not, use our free online registration service instead!

Is an individual entitled to an ABN? 

Yes, if the individual is a sole trader.

’Individuals carrying on an enterprise are entitled to an Australian business number (ABN) and are known as ‘sole traders’, which is the simplest and cheapest business structure.

If you're a sole trader, you are:

  • The only owner of the business
  • Legally responsible for all aspects of the business, including debts
  • You can employ other workers, but you cannot employ yourself.

As a sole trader, you are responsible for your own super and the super of any other workers you employ.

When are individuals not entitled to an ABN? 

If you have been engaged to carry out activities as an employee, you are not entitled to an ABN for that activity.

Therefore, employees are not entitled to their own ABN. 

What if I am carrying on a business with more than one person?

If you do not meet the criteria of a sole trader, then you can pursue other business structures.

When you get an ABN, it is then linked to your business name and TFN

Your ABN is linked to your business name, and the same goes for your TFN. If you’re a sole trader or partnership, you only need an ABN and it acts as both your tax file number and business number.

If you’re a company, then you need to apply for an ABN (which will have its own TFN).

To obtain an ABN, your company must:

  • Be able to demonstrate that the business structure is in place;
  • Be carrying on an enterprise in Australia;
  • In the course of carrying on an enterprise, make supplies connected with the indirect tax zone or have undertaken sufficient activities to commence an enterprise; or
  • Be a Corporations Act company.

More information on ABNs, including who is entitled to apply, is set out on the ATO's website.

How can I find my company’s ABN?

If you want to look up information about a registered ABN, such as to check that your details are up to date or check the details of a supplier, you can do this on the ABN Lookup website.

ABN Lookup allows you to search publicly available information supplied by businesses when they register for an ABN.

You can find the Australian Business Registry here.

If you cannot find your ABN, you may not have one already. You can register one here. 

Do I need to get an ABN for my Trust?

ABNs are not compulsory. However, there are many good reasons to have one - for example, ABNs help:

  • You to deal with the ATO; and
  • You in dealing with other businesses when supplying goods or services to them, or when purchasing goods and services.

Also, you need an ABN to register for GST.

Entities carrying on an enterprise in Australia with a GST turnover of $75,000 must register for GST.

More information can be found at www.abr.gov.au.

Is my trust eligible for an ABN?

 A trust must meet either one of the following 2 criteria to be eligible for an ABN:

Criterion 1:

The entity is any one of:

  • A company incorporated under the Corporations Act 2001 in Australia;
  • A charitable institution or trustee of a charitable fund in Australia;
  • A deductible gift recipient in Australia; or
  • A religious institution in Australia.
Criterion 2:

The entity can answer 'Yes' to each of the following statements:

1. Its activity is carried out in any of:
    1.1 the form of a business
    1.2 the nature of trade, or
    1.3 the form of a regular or continuous grant of a lease, licence or interest in property.
2. Its activity is carried out in Australia or it makes supplies that are connected with Australia.
3. Its activity is not a private recreational pursuit or hobby.

What can I do once receiving my ABN for my trust?

After acquiring an ABN and a TFN, the trust can then open a bank account.

A bank account should be opened for the trust in the name of the trustee as trustee for the trust. This should occur after the discretionary trust has been established and the trust deed stamped (if stamping is necessary).

The bank may require the trust ABN before it will open the account.

Do I need an ABN for my self-managed Superfund?

You can apply for an ABN along with a tax file number (TFN) as part of registering your fund with the ATO. Your fund will be eligible for tax concessions, and can receive contributions and rollovers after it is registered with the ATO.

A superannuation entity must be set up correctly – in line with the superannuation legislation – to be entitled to an ABN.

This requires the following steps: 

  • Appointing professionals to help set up your SMSF
  • Chosen either individual or corporate trustees
  • Appointed trustees or directors
  • Created the trust and trust deed
  • Checked your fund is an Australian super fund
  • Registered your fund
  • Set up a bank account
  • Got an electronic service address
  • Prepared an exit strategy
  • Prepared an investment strategy

You can set up your self-managed superfund with our qualified professionals here.

If you would like further inquire about SMSF ABNs feel free to email our consultants at support@company123.com.au or call 03 9832 0660.

What other kinds of ABNs can be registered?

Other types of ABNs include:

Deceased estate:

A deceased estate's entitlement to an ABN is dependant on the legal personal representative (LPR) carrying on an enterprise so as to finalise the affairs of the estate.

Applicants must be one of the following:

  • Executor or administrator with grant of probate or letters of administration
  • Public trustee with a certificate of authority
  • Appointed as administrator of the deceased estate by a court.

You cannot use an ABN held by the deceased person as an individual sole trader for business purposes after the person's death.

The LPR may only need to apply for an TFN if they are not carrying on an enterprise but required to manage post date of death income.

Cooperative:

Cooperatives carrying on an enterprise and registered with the relevant state or territory authorities are entitled to an ABN.

Incorporated entity:

Incorporated entities entitled to an ABN if carrying on an enterprise are:

  • A body corporate established under common law or an Act of Parliament
  • A corporation sole established under common law, an Act of Parliament
  • A foreign company registered with ASIC under the Corporations Act with an Australian registered body number (ARBN) or making supplies connected with Australia's indirect tax zone
  • An incorporated association, including a strata title, registered with the relevant state or territory authority.

Other entities

If carrying on an enterprise, the following can also be entitled to an ABN:

  • An unincorporated association or entity consisting of a group of individuals with a common interest (for example, a sporting club or social club) without a legally recognised structure
  • A strata corporation (legal entity formed to administer a strata title)
  • A not-for-profit (NFP) organisation.

When do I need to update my ABN details?

It's your responsibility to maintain your Australian business number (ABN) details.

You must update your details within 28 days of becoming aware of any changes, including changes in addresses etc.

Updating your ABN details will ensure:

  • The right people have the right permissions to act on behalf of a business
  • Government agencies have current information – for example, if emergency services need to contact businesses during natural disasters you are ready for new government services when they become available.

How do I update my ABN details? 

The fastest way is using your myGovID online. 

You can see how to create an account at the video below.

For further information, please see the ATO website.

What cannot be updated in your ABN online? 

You can't update:

  • Business names
  • Legal names for individuals and sole traders who need to contact the ATO directly
  • Legal names for companies registered with the Australian Securities & Investments Commission (ASIC).

You will need to contact the ATO directly.

Name changes made by the ATO and ASIC will update the ABR.

Do I need to cancel my ABN?

If you're closing your business, or changing your business structure, it's likely you'll need to cancel your ABN.

You'll need to cancel your ABN when changing from a:

  • Sole trader to a company
  • Sole trader to partnership
  • Partnership to company

If your business is no longer operating you need to cancel your ABN on the ABR website.

In Australia, the most crucial first steps for new business are to register for an ABN. A Business Number (ABN) is a unique 11-digit number that identifies your business or organisation to the government and community and is linked to your business name, trading as (T/A) name and Australian Tax File Number (TFN).

Here at Company123 we offer simple and quick ABN registration as tax agents at our ABN registration form.