How to apply for an ABN?
Vania Wang • September 14, 2020
Want to know how to apply for an ABN?
An ABN, short for Australian Business Number is an 11-digit unique identification number. Anyone who is looking to start a business will need an ABN as it’s a legal requirement. To be eligible for an ABN, your business should be categorised either as a sole trader, company, partnership or trust.
Benefits of applying for an Australian Business Number
One of the biggest benefits is that you will save time and money. If you do not quote an ABN on invoices, other businesses are
legally obligated to withhold tax (at the rate of 46.5%) when making payments to you.
Although you can claim the excess tax when filing your annual returns, having an ABN will improve your cash flow.
You can use your ABN to:
- Identify your enterprise to your customers and vendors
- Claim GST credits
- Claim energy grants credits
- Avoid PAYG tax on the payments you receive
- Register an Australian domain name
- Comply and lodge activity statements with the ATO
- Transact with other businesses seamlessly and smoothly
Things you will need
When applying for an ABN, you must provide detailed information, and the success of your application entirely depends on how much information you provide.
You will need to provide the following information:
- Name and contact information of the application
- Legal name of your business entity
- Address and contact information of your business
- Details of each organisation/person associated with your business (such as directors, partners, shareholders or secretary)
- Authorised contacts – People who are authorised to update or make changes to your ABN information (e.g. tax agent or the applicant)
- Tax agent number (if you are using an agent)
- Tax file number (optional)
- Proof of identity (such as a driving license)
- Business structure
- Details of the business activities you will conduct – Provide information about the main source of income for your business (such as investment, construction, agriculture or manufacturing).
- Business locations – Details about the premises your business operates.
How to apply for an ABN?
You can apply for your ABN in any of the following three ways:
- Through the Australian Government’s Business Registration Service.
- Download the application form, complete it and mail it in.
- Through a tax agent.
Tips for applying for ABN
Chances are you will need to register for the following:
- GST – You must register for GST if you expect your GST turnover to exceed $75,000 ($150,000 for non-profits). If you haven’t registered for GST, every month, check whether you have reached the threshold or are about to exceed it. If your turnover goes beyond the threshold, you must register within 21 days of touching it.
- PAYG – Under the pay-as-you-go scheme, you are obliged to collect tax from the payments you make to employees (and specific businesses) so they can meet their end-of-year tax liabilities.
- Fringe benefits tax – If you provide fringe benefits to your employees, you might have to pay fringe benefits tax. Once you decide you will be paying fringe benefits to employees, be sure to register for fringe benefits tax.

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