How to Get an ABN in Australia: Free Guide

Q: What is the difference between an ABN and an ACN?

An ACN is a nine-digit identifier for companies registered with ASIC. An ABN is an 11-digit identifier for all business entities. Companies have both.

The biggest hurdle to getting an ABN isn’t the paperwork—it’s figuring out whether you actually need one. The answer isn’t always straightforward, but the process to get one is simpler—and cheaper—than most expect.

Cost to apply for an ABN: $0 (free) ·
Online processing time: Up to 20 minutes ·
GST registration threshold: $75,000 annual turnover ·
Hobby vs business assessment period: 3 years (ATO hobby rule)

Quick snapshot

1Who Needs an ABN

Anyone carrying on an enterprise in Australia – Australian Business Register (government registry)
Sole traders, partnerships, companies, trusts – Xero AU (accounting software firm)
Not required for hobbies or personal activities – Australian Business Register (Australian Business Register (government registry))

2How to Apply

Online via Australian Business Register (free) – ABR home page
Provide TFN, business details, and activity description – Xero AU
Instant approval in most cases – Reckon AU (business software provider)

3Cost

ABN application is free – Business Registration Service (Australian Government)
No annual maintenance fee – Australian Business Register (Business Registration Service (Australian Government))
Optional registrations (e.g., business name) may have costs – Australian Business Register (Business Registration Service (Australian Government))

4Key Thresholds

GST registration required over $75,000 turnover – Australian Taxation Office (tax regulator)
Hobby rule: 3-year assessment period – Australian Taxation Office (Australian Taxation Office (tax regulator))
No income minimum for ABN itself – Xero AU (Australian Taxation Office (tax regulator))

Five key facts at a glance, one pattern: the ABN system separates eligibility from income size entirely.

Fact	Value
Cost to apply	Free
Processing time	Instant to 20 minutes
GST threshold	$75,000 annual turnover
Hobby rule period	3 years
Entitlement	Must be carrying on an enterprise

What is an ABN and why do I need one?

Who can apply for an ABN?

An Australian Business Number (ABN) is an 11-digit identifier for businesses interacting with the tax system – that’s the core definition from Zeller (Australian payment platform). You’re entitled to an ABN if you carry on an enterprise in Australia, but the ABR warns not everyone qualifies. Sole traders, partnerships, companies, and trusts all fall under the enterprise umbrella.

What activities require an ABN?

Running a business full-time or part-time – ABR
Freelancing or contracting – Xero AU
Renting out property (in some cases) – ATO

How does an ABN differ from a TFN?

Your Tax File Number (TFN) is for individuals managing personal tax, while the ABN is specifically for businesses. Companies may also need their Australian Company Number (ACN) during application, as noted by Xero AU.

The upshot

A sole trader without an ABN cannot issue a tax invoice and may miss out on GST credits – a real cost for anyone earning over $75,000.

The implication: an ABN is essential for business operations, but not all activities qualify.

For anyone carrying on an enterprise, getting an ABN is a prerequisite; hobbies and personal activities remain outside the requirement.

Do I need an ABN if I earn less than $75,000?

What is the $75,000 threshold for?

This threshold is for GST registration, not ABN eligibility. If your business turnover exceeds $75,000, you must register for GST and will need an ABN to do so. Below that? You can still get an ABN voluntarily – and it’s often wise – but GST registration is optional – ABR.

Do I need an ABN if I only sell a few items?

Selling a few used items online as a one‑off likely counts as a personal transaction, not a business. But if the selling is regular, organised, and profit‑driven, the ATO may view it as an enterprise, meaning you should apply for an ABN.

What if I am a hobbyist?

Hobbyists generally do not need an ABN. The ATO distinguishes between a hobby (personal pleasure, no profit intention) and a business (commercial, profit‑focused). More on the test below.

The pattern: the threshold for GST is not a gate for ABN eligibility; business intent matters more.

Low earners and hobbyists often overestimate the $75,000 threshold; the real test is whether the activity is run like a business.

How do I get an ABN?

What information do I need to apply?

Your Tax File Number (TFN) – Xero AU
Personal details (name, address, contact) – Reckon AU
Business activity description and start date – Xero AU
For companies: Australian Company Number (ACN) – Xero AU

How do I apply online through the Australian Business Register?

Go to the ABR website or Business Registration Service – both are free government portals.
Provide your TFN, personal details, and business information – Zeller
Submit the application – most are processed instantly or within 20 minutes – Xero AU.
If your application requires manual review, the Stripe (payment processor) advises to allow extra time and respond to any follow‑up requests promptly.

Can I use a tax agent to apply for an ABN?

Yes, but Xero AU notes that third‑party services and tax agents may charge a fee. The government option remains free.

Why this matters

Paying a third party for a free service is the number one hidden cost new business owners face – the ABR process is designed to be self‑service.

What this means: using a free government portal avoids unnecessary fees.

Applicants can complete the process in minutes by using the ABR or Business Registration Service – no payment needed.

Is it free to have an ABN?

Are there any ongoing fees for an ABN?

No. Once you receive your ABN, there are no annual fees or renewal charges – confirmed by the ABR. It remains active as long as your business details are up to date.

Do I need to pay to renew my ABN?

ABNs do not expire in the traditional sense. However, the ABR may cancel an ABN if it hasn’t been used or if the holder hasn’t lodged business activity statements. No renewal fee applies.

What costs are associated with ABN registration?

ABN application: free – Business Registration Service
Business name registration (optional): around $39–$92 depending on state – Business.gov.au (Australian Government business portal)
GST registration: free – ABR

The catch: while the ABN itself is free, associated registrations add small costs.

Business owners should budget for optional name registration but can rest assured that the ABN itself carries no ongoing fees.

What is the 3 year hobby rule?

How does the ATO distinguish between a hobby and a business?

The ATO applies a three‑year assessment: if your activity makes a profit in at least two of three consecutive years and is conducted in a business‑like manner, it’s likely a business. Otherwise, it may be classified as a hobby.

What happens after 3 years if my hobby becomes a business?

If your activity crosses the threshold, you must apply for an ABN and, if turnover exceeds $75,000, register for GST. The ATO uses the three‑year window to give hobbyists time to test an idea without immediate regulatory burden.

Do I need an ABN if my hobby is unlikely to make a profit?

No. The ATO explicitly states that hobbies are not considered enterprises. You do not need an ABN for personal activities.

The catch

Hobbyists who later surpass the profit test may face backdated ABN requirements – starting early avoids future compliance headaches.

The implication: hobbyists should track their activity in case it evolves into a business.

Potential ABN applicants who run a hobby should expect to register if their activity becomes profit-driven within three years.

Do I need an ABN as a sole trader or for a side hustle?

What is a sole trader and when do you need an ABN?

A sole trader is an individual running their own business. If you carry on an enterprise, even part‑time, the ABR requires an ABN. Without one, clients may withhold 47% of payments under the PAYG system – a strong incentive to register.

Do I need an ABN for a side hustle like selling crafts online?

If selling crafts is regular and profit‑driven, yes. The ATO looks at repetition and commercial intent. A one‑off garage sale is not a business; an Etsy shop with monthly sales likely is.

What are the pros and cons of getting an ABN for a small activity?

Upsides

Ability to claim GST credits on business purchases – Xero AU
Issue valid tax invoices to clients – ABR
Looks professional and builds trust – Reckon AU

Downsides

Additional tax reporting obligations – ATO
Must keep business records separate – Xero AU
Potential for unintended GST liability if turnover later exceeds $75,000 – ABR

The pattern: the decision to get an ABN for a small activity hinges on regularity and profit motive.

Sole traders and side hustlers gain credibility and GST benefits but must accept extra record‑keeping and reporting.

What We Know and What Remains Unclear

Confirmed facts

ABN application through ABR is free – ABR
You must have an ABN if you are a business and meet enterprise criteria – ABR
The $75,000 threshold is for GST, not ABN – ABR

What’s unclear

Whether a specific activity qualifies as a business or hobby depends on individual facts – ATO
The exact processing time can vary during peak periods – Stripe
Non‑resident eligibility may be more complex – ABR

What the Authorities Say

“Your application for an ABN starts here. Before applying, ensure you’re entitled to an ABN. Not everyone is entitled to an ABN.”

– Australian Business Register (government registry)

“It’s free to register for an ABN through the Australian Government’s Australian Business Register.”

– Business.gov.au (Australian Government business portal)

“The 3-year rule helps determine if your activity is a hobby or a business.”

– Australian Taxation Office (tax regulator)

Editorial Summary

Getting an ABN in Australia is free, fast, and straightforward – but only if you genuinely run a business. The hobby rule gives you three years to test an idea without commitment, yet many small operators delay registration and later face withheld payments or GST surprises. For anyone earning consistently from a side hustle or freelance work, the choice is clear: register now while it’s simple, or deal with the paperwork later when it’s mandatory.

Additional sources

scalesuite.com.au, youtube.com

If you’re applying for an ABN, you might also need to look up AustralianSupers ABN for superannuation purposes.

Frequently asked questions

How long does an ABN last?

An ABN remains active as long as your business details are up to date and you continue to lodge required returns. The ABR may cancel it if the ABN is unused for a period.

Can I apply for an ABN without a TFN?

Generally no. The ABR requires a TFN to process the application. Without one, you must apply for a TFN first.

Do I need an ABN for a rental property?

If you rent out a property as a business (e.g., multiple investment properties with active management), you may need an ABN. Single rental properties are typically considered personal investments – ATO.

What is the difference between an ABN and an ACN?

An ACN (Australian Company Number) is a nine‑digit identifier for companies registered with ASIC. An ABN is an 11‑digit identifier for all business entities. Companies have both – ABR.

Do I need to display my ABN on invoices?

Yes. If you carry on an enterprise and your GST turnover is $75,000 or more, you must show your ABN on tax invoices. Even below that, it’s best practice – ATO.

Can I cancel my ABN at any time?

Yes. If you stop carrying on your enterprise, you can cancel your ABN online via the ABR. There is no penalty for cancelling early.

For broader Australian business context, see our guide on the Australian Share Market: ASX 200 Live, Predictions & Top Stocks and the Long Service Leave Calculator: Free Tool for NSW, Vic, Qld, WA.