ABN Registration: Your Key to Doing Business in Australia

Image source: Australian Business Register (ABR)

Every business in Australia needs an ABN, or Australian Business Number. This 11-digit identifier is assigned when you register for an ABN, and it’s used for important things like taxes and business transactions. Your ABN is unique to your organisation, so keep it handy; you’ll be using it a lot.

A tax file number is non-negotiable for any Australian business. It’s a must-have, regardless of your company’s scale.

Benefits of having an ABN

Having an ABN comes with a bunch of perks. It lets you:

• Avoid pay-as-you-go (PAYG) tax on payments you get
• Claim energy grants credits
• Register an Australian domain name
• Identify your biz to others when ordering and invoicing

Plus, some suppliers and customers won’t do business with you unless you’ve got an ABN. It’s like your business registration  passport.

Need an in-depth guide on the benefits of having an ABN? Look no further, we have created just the guide for you. 

Consequences of not having an ABN

On the flip side, if you don’t have an ABN and you’re running a business, you could face some serious consequences. For starters, your clients might have to withhold a whopping 47% from any payments they make to you. Ouch.

You also won’t be able to register for GST, claim energy grants credits, or get an Australian domain name. Clearly, it’s just not worth the hassle. 

Eligibility requirements for obtaining an ABN according to business structure

So, who’s eligible for an ABN? The good news is, most businesses can apply, whether you’re a sole trader, in a partnership, running a company, or operating a super fund.

But there are a few boxes you’ll need to tick first. Let’s break it down:

Sole trader ABN requirements

If you’re a sole trader, you’ll need to provide:

• Your personal details
• Your tax file number (TFN)
• Proof of identity

You’ll also need to describe your main business activity and confirm that you’re operating as a business, not just a hobby.

Partnership ABN requirements

For partnerships, you’ll need to provide personal details and TFNs for all partners, as well as proof of identity for each partner.

You’ll also need to give a clear description of your main business activity and confirm that you’re in a formal partnership.

Company ABN requirements

Companies need to provide their Australian Company Number (ACN), as well as personal details and TFNs for all directors.

You’ll also need to describe your main business activity and confirm that you’re operating as a company.

Super fund ABN requirements

For super funds, you’ll need to provide the fund’s TFN, as well as personal details for all trustees.

You’ll also need to describe the main activity of the fund and confirm that it’s a regulated super fund.

Step-by-step guide to registering for an ABN online

Getting your ABN online is a snap. Just follow these simple steps and you’ll be all set in no time.

1) Preparing required information

Before you start your online ABN application, make sure you’ve got all the required info on hand, like your TFN, proof of identity, and a clear description of your main business activity.

Trust me, it’ll save you a lot of time and frustration if you gather everything beforehand.

2) Accessing the online application form

To access the online ABN application form, head to the Australian Business Register website. You’ll need to create an account if you don’t already have one.

Once you’re logged in, click on the “Apply for an ABN” link to get started.

3) Completing the application form

The online application form will guide you through each step of the process. Make sure you fill out all the required fields accurately and completely.

If you find yourself in a challenging position, ABR’s website is chock-full of guides and helpful tips to get you back on track. And if you’re still scratching your head, their friendly support team is just a quick message away, ready to lend a helping hand.

4) Submitting your application

Once you’ve completed the application form, double-check that all the information is correct before submitting it.

You’ll get a confirmation message on the screen, and you’ll also receive an email confirming that your application has been received.

What to expect after submitting your ABN application

So, you’ve submitted your ABN application – congrats. Now what? Here’s what you can expect:

Processing time for ABN applications

The processing time for ABN applications can vary, but most are processed within 28 days. In some cases, you might be asked to provide additional information to support your application.

If everything’s in order, you should receive your ABN confirmation within a few weeks. Exciting times.

Receiving your ABN confirmation

Once your ABN application has been approved, you’ll receive an email with your ABN details. You’ll also get an official letter confirming your ABN registration details in the mail.

Make sure you keep this letter in a safe place – you’ll need it for tax purposes when transacting at the Australian Taxation Office (ATO) and other official businesses.

Updating your ABN details

If any of your business details change after you’ve registered for an ABN, it’s important to update them with the Australian Business Register as soon as possible.

Keeping your ABN details current is crucial. Head over to the ABR website and update your business name, address, contact information, or main activity—it’s that simple.

Reactivating a cancelled ABN

If your ABN has been cancelled, you might be able to reactivate it by contacting the Australian Business Register ABN services. You’ll need to provide a reason for the reactivation and any supporting documentation.

Keep in mind that reactivation isn’t always possible, so it’s best to avoid letting your ABN get cancelled in the first place.

If you’re wondering, do ABNs expire? We have created an article that will explain all you need to know. 

Searching someone else’s ABN

Need to find someone else’s ABN? You can use the ABN Lookup tool on the ABR website. Just enter the business name, or ABN, and it’ll show you the publicly available information associated with that ABN.

This can be handy reference number when you’re dealing with new suppliers or customers and want to verify their ABN.

Providing your ABN to others

When you’re doing business with other companies or organisations, they’ll often ask for your ABN. This is totally normal; they need it for their own tax and reporting purposes.

Your ABN is a crucial piece of information, so don’t hesitate to share it when asked. But before you move on, take a quick second to ensure it’s been properly noted—this small action can prevent big problems down the road.