Getting an ABN in Australia is the first formal step for most new businesses. Knowing how to apply for an ABN with the ATO correctly, and what comes after, saves time and avoids the most common mistakes. It is free, processed online through the Australian Business Register, and in most cases approved instantly. But the application itself is only part of the process. Knowing what to prepare before you apply, what to do immediately after, and how to keep your ABN active long-term prevents the most common problems new business owners run into.

TL;DR

An ABN is free and applied for online at abr.gov.au through the Australian Business Register.You must be carrying on or intending to carry on an enterprise in Australia to be eligible.Most applications are approved instantly if your details match ATO records.After getting your ABN, register for GST if your turnover will exceed $75,000, register your business name, and arrange your business insurance.The ATO can cancel your ABN if it believes you are no longer carrying on an enterprise. Update your details within 28 days of any change.

What Is an ABN and Who Needs One in Australia?

An Australian Business Number (ABN) is an 11-digit identifier issued by the Australian Business Register (ABR) on behalf of the ATO. It is the number your business uses when dealing with the government, other businesses, and customers. You quote it on invoices, tax documents, and business registrations.

Without an ABN, other businesses that pay you for goods or services are legally required to withhold 47 percent of your payment and send it to the ATO. That is the top marginal tax rate applied as a default withholding. Getting an ABN removes that withholding obligation.

Who is eligible for an ABN?

You are eligible for an ABN if you are carrying on, or intending to carry on, an enterprise in Australia. The ATO uses the concept of an enterprise to separate genuine business activity from employment or hobbies.

An enterprise is a planned, commercial activity conducted in a businesslike manner with the intention of making a profit. It involves repetition, organisation, and structure. One-off or personal transactions, and activities done purely for recreation, do not qualify.

• Eligible: Sole traders, independent contractors, freelancers, partnerships, companies, trusts, and other business entities genuinely operating in Australia.
• Not eligible: Employees performing services for an employer. Hobbyists selling personal items occasionally. People carrying out domestic or private activities.

If you are considering operating as a sole trader, the sole trader guide covers what a sole trader is and how the structure works compared to other business forms.

Not sure which type of business you are running? The common types of sole trader businesses in Australia covers the main categories.

For a comparison of sole trader vs company structure before deciding which ABN entity type to apply for, the sole trader vs limited company guide covers the key differences.

What Do You Need Before Applying for an ABN?

Gathering the right information before starting the online application makes the process faster and reduces the chance of delays. Have the following ready:

• Tax File Number (TFN). Your Tax File Number (TFN) speeds up identity verification. Applications without a TFN can take significantly longer to process.
• Identity documents. Full legal name, date of birth, and residential address. For companies and trusts, you will also need the ABNs or TFNs of directors and trustees.
• Business structure decision. Sole trader, company, partnership, or trust. The ABN application asks for this, and it affects your tax obligations. If you are unsure, confirm this before applying.
• Business activity description. A clear, specific description of what your business does. Vague descriptions are one of the most common reasons applications trigger manual review. Be specific: not "consulting" but "IT consulting services to small businesses."
• Business commencement date. The date your business started or will start. This is recorded on the ABR and is relevant if the ATO ever reviews your entitlement.
• myGovID. Required to access the ABR's online portal. Set this up at myGovID.gov.au before starting if you do not already have one.

Once you have everything prepared, the application itself takes around 15 minutes online.

How Do You Apply for an ABN with the ATO?

You apply for an ABN at abr.gov.au, the official portal to apply for an ABN with the ATO. There is no fee to apply for an ABN. The ATO does not charge for ABN registration. Third-party services that charge a fee to submit an ABN application on your behalf are not required and are not affiliated with the government.

How to Apply for an ABN: Step-by-Step

1. Log in to abr.gov.au using your myGovID. Select "Apply for an ABN."
2. Confirm your eligibility. The portal walks you through the enterprise test questions. Answer accurately.
3. Select your business structure. Sole trader, company, partnership, trust, or other entity type.
4. Enter your identity details. Name, TFN, date of birth, and address. For entities: director or trustee details.
5. Describe your business activity. Use a clear, specific description. Select the ANZSIC industry code that best matches your activities.
6. Enter your business address and contact details. These will be listed on the public ABR register unless you request suppression for privacy reasons.
7. Review and submit. Check all details carefully before submitting. Errors can delay processing and require contacting the ABR to correct.

Approval timing: Most ABN applications where identity is electronically verified are approved instantly. Your 11-digit ABN will appear on screen and be sent to your nominated email. Applications that cannot be automatically verified go to manual review, which can take up to 28 days. Providing your TFN and ensuring your details match ATO records is the single biggest factor in getting instant approval.

Once your ABN is confirmed, the next steps set your business up properly before you start trading.

What Should You Do After Getting Your ABN?

Getting your ABN is the start, not the finish. Most new businesses need to complete several additional steps before they are properly set up to trade.

Register for GST if your turnover will exceed $75,000

GST registration is mandatory if your annual turnover is $75,000 or more from business activities. It is optional below that threshold. Once registered, you must charge 10% GST on taxable supplies, issue tax invoices, and lodge Business Activity Statements (BAS) with the ATO.

Taxi and rideshare drivers must register for GST regardless of turnover. Businesses that want to claim GST credits on business expenses can register voluntarily even below the threshold.

Register your business name if you are not trading under your legal name

If your business trades under any name other than your own full legal name (for a sole trader) or your registered company name, that name must be registered with ASIC. Business name registration costs $44 for one year or $102 for three years (2026 ASIC fees) and is done through the ASIC business name portal, check for updated fees if applicable on portal directly.

Your ABN must be quoted on all business correspondence, invoices, and public-facing materials. It is required on the ABR alongside any registered business name.

Arrange business insurance before you start trading

Business insurance is not part of the ABN registration process, but it is one of the most important steps before you start dealing with clients. Public liability insurance is required by most commercial landlords, head contractors, and councils before they will engage your business. Many clients request a Certificate of Currency as standard. The right insurance depends on what type of business you run, whether you give professional advice, and whether you have staff. 

Open a dedicated business bank account

Keeping business and personal finances separate is a legal requirement for companies and a strong practical recommendation for sole traders. A dedicated business bank account makes bookkeeping, tax filing, and GST reconciliation significantly easier. Most banks offer business accounts that can be opened online.

Set up a record-keeping system

The ATO requires businesses to keep financial records for five years. Set up a basic accounting system before your first transaction. For sole traders starting out, a simple spreadsheet or entry-level accounting software is sufficient. As your business grows, more structured systems become worthwhile.

How Do You Keep Your ABN Active?

The ATO periodically reviews ABN registrations to confirm that registered businesses are still genuinely carrying on an enterprise. An ABN can be cancelled by the ATO if it determines the holder is no longer eligible. Cancellation affects your ability to invoice, register for GST, and participate in many commercial arrangements.

There are four things that keep your ABN active and in good standing.

Update your ABN details within 28 days of any change

You are legally required to update the Australian Business Register within 28 days if your business name, address, contact information, business structure, or main business activity changes. Updates are made at abr.gov.au using your myGovID. Outdated details on the ABR are one of the triggers for an ATO entitlement review.

Lodge your tax returns and BAS on time

Regular and on-time lodgement signals to the ATO that your business is active. Long periods of inactivity (no BAS lodgements, no income declared, no business activity evident) are a common trigger for the ATO to review whether your business is still operating. If your business has a quiet period, document it and maintain your ATO obligations regardless.

Cancel your ABN if you stop operating

If you stop trading, cancel your ABN promptly at abr.gov.au. Running a dormant ABN creates ongoing ATO obligations and can create complications if you later apply for a new ABN in the same name or structure. Cancellation is immediate and does not affect your tax history.

Respond to ATO entitlement reviews promptly

The ATO may write to you asking you to confirm that your business is still operating. Provide the requested documentation within the specified timeframe. Businesses that cannot demonstrate active trading may have their ABN cancelled. Evidence of business activity includes invoices issued, business bank account transactions, business name registration, or a lease for business premises.

If the ATO cancels your ABN, you can reapply through abr.gov.au provided you still meet the eligibility requirements. You will need to demonstrate that you are carrying on, or intending to carry on, an enterprise. Contact the Australian Business Register or a registered tax agent if you need assistance with the reapplication process.

About upcover

upcover is a digital-first insurance broker helping Australian small businesses and sole traders arrange the right insurance instantly online. Once you have your ABN and are ready to start trading, upcover arranges public and products liability insurance, professional indemnity insurance, and business pack insurance for sole traders and small businesses across 4,000+ occupations in Australia.

• 70,000+ businesses covered across Australia.
• 4.9/5 customer rating.
• Instant Certificate of Currency on policy confirmation.
• 80+ insurance partners.

upcover is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078.

Frequently Asked Questions

How Do I Apply for an ABN in Australia?

To apply for an ABN with the ATO, go to abr.gov.au and log in with your myGovID. You must confirm eligibility by demonstrating you are carrying on or intending to carry on an enterprise in Australia. Have your TFN, identity details, business structure decision, and a specific description of your business activity ready before starting. Most applications are approved instantly.

What Happens if My ABN Application Is Not Approved Instantly?

Most applications are approved instantly when identity is electronically verified. If yours goes to manual review, it can take up to 28 days. Common causes are a name that does not match ATO records, no TFN provided, or a new entity without an existing ATO history. Contact the Australian Business Register on 13 92 26 if you have not heard back after 28 days.

How long does getting an ABN take?

Most ABN applications are approved instantly when submitted online and your identity can be electronically verified against ATO records. Applications that require manual review can take up to 28 days. Providing your TFN and ensuring your personal details match ATO records gives you the best chance of instant approval.

What happens if I get an ABN but do not use it?

The ATO can cancel an ABN if it determines the holder is no longer carrying on an enterprise. If your business is dormant, maintain your ATO lodgement obligations and update your ABR details to reflect your current situation. Cancel your ABN promptly if you stop trading. Running a dormant ABN without activity creates ongoing review risk.

Do I need insurance when I get an ABN?

Insurance is not part of the ABN application process, but it is one of the most important steps before you start trading. Public liability insurance is required by most commercial landlords, councils, and clients as a condition of engagement. The type of insurance you need depends on your occupation, whether you provide professional advice, and whether you have staff. upcover arranges instant insurance for sole traders and small businesses across 4,000+ occupations.

Do I need to register for GST when I get an ABN?

GST registration is only mandatory if your annual business turnover reaches $75,000 or more. Below that threshold, registration is voluntary. Taxi and rideshare operators must register regardless of turnover. Once registered, you must charge 10 percent GST on taxable sales, issue tax invoices, and lodge Business Activity Statements with the ATO. Confirm your specific GST obligations with a registered tax agent.

Can I run multiple businesses under one ABN?

Yes. A sole trader or business can operate multiple trading names under a single ABN as long as they share the same legal structure. The ABN belongs to the legal entity as a sole trader, or the company; not to the individual trading name. If you add a new business activity or trading name, update your ABR details at abr.gov.au within 28 days to reflect the change. Keeping your registered business activities current across all names you trade under also reduces the risk of your ABN being flagged as inactive. For a full breakdown of how this works and when a separate ABN is required, see Multiple Business Names Under One ABN: What You Need to Know.‍

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The information in this article is general in nature and provided for informational purposes only. It is based on publicly available guidance from the Australian Taxation Office and the Australian Business Register and is accurate as at May 2026. Tax and business registration requirements can change. For advice specific to your business structure and tax obligations, consult a registered tax agent or contact the ATO directly at ato.gov.au. Where this article references insurance products, that information is general in nature and has been prepared without taking into account your individual needs, objectives or financial situation. Insurance products arranged through upcover are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. upcover Pty Ltd ABN 17 628 197 437 is a Corporate Authorised Representative (CAR 1299211) of Experience Insurance Services Pty Ltd ABN 41 657 596 506, AFSL 539078. upcover arranges insurance products with selected insurers and does not compare all general insurers or insurance products available in the market.