- A statement by supplier lets certain suppliers avoid no-ABN withholding without quoting an ABN.
- Valid reasons include hobby income, private sales, payments of A$75 or less (excluding GST), and under-18s paid A$350 or less per week.
- If no statement and no valid reason apply, the payer must withhold 47% and remit it to the ATO.
A statement by supplier is a short ATO form that lets certain suppliers explain why they are not quoting an Australian business number (ABN) on a payment. Without it, or a valid ABN, the payer must hold back a large slice of the payment and send it to the ATO.
The form matters most to hobbyists, under-18s and one-off sellers who genuinely do not run a business. If you do run a business, the cleaner fix is often to register an ABN rather than lean on the form every time.
What is a statement by supplier?
A statement by supplier is a written declaration a supplier gives a payer to justify not quoting an ABN, so the payer can avoid withholding tax from the payment. The ATO publishes it as a downloadable form (NAT 3346). It shifts the record-keeping burden onto a short signed note rather than a full invoice.
The form only works when the supplier legitimately falls outside the ABN system. If you want the background on what an ABN is and who needs one, our guide on what an ABN is covers the basics. The statement is not a loophole for businesses that should be registered.
When is a statement by supplier used?
A statement by supplier is used when a supplier who is not carrying on an enterprise supplies goods or services and therefore cannot quote an ABN. It lets the payer pay in full without withholding.
Common situations include:
- A hobby artist who sells a piece or wins a small prize.
- A homeowner selling personal furniture to a second-hand store.
- A teenager doing occasional paid tasks who earns A$350 or less per week.
- A one-off supplier whose payment is A$75 or less, excluding GST.
TIPKeep the signed statement with the payment records for the transaction. If the ATO later reviews the payment and the statement was reasonable to rely on, the payer is not penalised.
What are the valid reasons for not quoting an ABN?
The valid reasons are set out by the ATO, and a supplier needs only one of them to complete the form. Each reason reflects a supplier who sits outside the enterprise and ABN rules.
The current ATO reasons are:
| Reason | What it covers |
|---|---|
| Not carrying on an enterprise in Australia | The supplier does not run a business here |
| Individual under 18 | Payment does not exceed A$350 per week |
| Small payment | Payment does not exceed A$75, excluding GST |
| Wholly input taxed supply | For example, certain financial or residential rent supplies |
| Private recreational pursuit or hobby | An individual supplying as a hobby, with a written statement |
| Wholly private or domestic | For example, selling personal household items |
| No reasonable expectation of profit | An individual or partnership without a profit motive |
| Whole payment is exempt income | The payment is exempt in the supplier’s hands |
Some suppliers cannot use the form at all. Employees, company directors and office holders, religious practitioners, and anyone under a labour hire arrangement are excluded. Anyone entitled to an ABN for the activity is also excluded.
What if there is no statement and no ABN?
If a supplier does not quote an ABN and no valid exception applies, the payer must withhold 47% from the payment and remit it to the ATO. This is the no-ABN withholding rate, in place since 1 July 2017.
The withheld amount is not lost to the supplier. The payer issues a payment summary, and the supplier claims the amount back as a credit in their income tax return. Our overview of withholding tax explains how these amounts flow through the system.
Payers must be registered for PAYG withholding before they hold back and report these amounts. If you handle regular payments to workers, our guide to PAYG tax sets out the reporting steps. Failing to withhold when required can attract a penalty equal to the amount that should have been withheld.
How do you complete and keep the form?
You complete the form by recording a few minimum details and having the supplier sign it. The ATO accepts either its own form or an equivalent signed statement.
At a minimum, the statement should contain:
- The supplier’s name and address.
- The reason it was not necessary to withhold.
- The supplier’s signature.
The payer keeps the completed statement with the other records for that supply. There is no need to lodge it with the ATO, but it must be produced if the ATO reviews the payment. Accurate records here protect the payer if a supplier’s circumstances are later questioned.
Supplier without an ABN: use the form or just register?
The right path depends on whether the supplier genuinely runs a business. A hobbyist or one-off seller uses the form, while a real business should register instead of repeating the form each time.
Use the decision flow below:
| Situation | Question to ask | Action |
|---|---|---|
| Supplier has not quoted an ABN | Is a valid reason present (hobby, private sale, under 18 on A$350 or less per week, payment A$75 or less, not carrying on an enterprise)? | If yes, accept a statement by supplier and pay in full |
| Same, but no valid reason | Does the supplier actually run a business? | If so, ask them to register an ABN and quote it |
| Same, no reason and no ABN | Do you need to protect yourself as payer? | Withhold 47% and remit it to the ATO |
Suppliers who repeatedly hit these questions usually should register. Our guide to accounts for contractors explains how an ABN changes invoicing and record-keeping for people who supply on an ongoing basis.
How Sleek helps you stay ABN-compliant
Sleek helps sole traders, freelancers and companies get their ABN status right so payments are not tied up in unnecessary withholding. Our accountant services team can review whether you should register or rely on the form, and our tax and accounting for freelancers support keeps ongoing suppliers compliant. Sleek keeps the paperwork tidy so you spend less time chasing ABN questions.
Not sure whether to register or use the form?
Get clear, practical advice and stay ABN-compliant.
450,000
businesses worldwide.
from 4,100+ reviews.
Frequently Asked Questions
What is the form number for the statement by a supplier?
The ATO form is NAT 3346, titled Statement by a supplier not quoting an ABN. You can download it as a PDF from the ATO website. A payer can also accept an equivalent signed statement that contains the same minimum details.
Does the payer send the statement to the ATO?
The payer keeps the statement with its records for the supply rather than lodging it with the ATO. It only needs to be produced if the ATO reviews the transaction. Good record-keeping is what protects the payer from penalties.
Can a company or trust use the statement by supplier form?
Companies and other entities entitled to an ABN cannot use the form. The reasons are aimed at individuals and, in limited cases, partnerships without a profit motive. A company director or office holder also cannot use it for those payments.
Does the A$75 threshold include GST?
The A$75 threshold applies to the payment excluding any GST. If the payment before GST is A$75 or less, no withholding is required even without an ABN. Above that figure, a valid reason or an ABN is needed to avoid withholding.
How does a supplier get back the 47% that was withheld?
The payer issues a PAYG payment summary showing the amount withheld where no ABN was quoted. The supplier uses that summary to claim a credit in their income tax return. The withheld amount is offset against their final tax, so it is not an extra cost if they lodge correctly.
What happens if the payer thinks the statement is false?
If the payer has reasonable grounds to believe a statement is false or misleading, they must withhold 47% from the payment. Relying on a statement that is clearly wrong is not acceptable. When in doubt, a payer can ask the supplier for an ABN instead.
How long should the completed form be kept?
As a general ATO record-keeping rule, payment records should be kept for five years. Keeping the statement for that period covers a possible review. Store it alongside the invoice or receipt for the same supply.
