Apply for an ABN: Simple steps for AU small businesses

Published Thursday 8 January 2026

Table of contents

• What is an ABN and why do you need it?
• Before you apply for an ABN
• How much does an ABN cost?
• Be prepared: five things to check before you apply for an ABN
• How do I get an ABN?
• What happens when I apply for an ABN?
• What other registrations do I need?
• What happens once I have my ABN?
• Grow your business with Xero
• FAQs on applying for an ABN

Key takeaways

• Apply for your ABN for free through the Australian Government's Business Registration Service rather than paying third-party services, as the official application process costs nothing and provides instant approval when you include all required tax file numbers.
• Gather five essential items before starting your application: your Australian Company Number (if applicable), complete business details including legal name and main activity, tax file numbers for yourself and business associates, contact details for authorised representatives, and your chosen business start date within six months of application.
• Register for GST within 21 days if your business turnover reaches $75,000 annually ($150,000 for not-for-profits), and consider bundling this registration with your ABN application to save time on administrative tasks.
• Update your ABN details within 28 days of any business changes such as address, contact information, or business structure modifications, as this is a legal requirement that helps maintain your business legitimacy and avoid penalties.

What is an ABN and why do you need it?

An Australian business number (ABN) is an 11 digit identifier used to identify any type of business, from sole traders to companies, for tax and legal purposes. Most businesses earning over $75,000 annually need an ABN to:

• Invoice customers: Include your ABN on invoices and avoid withholding tax
• Register for GST: Required for businesses with turnover above $75,000
• Open business bank accounts: Banks require an ABN for business accounts
• Claim business tax deductions: Essential for legitimate business expenses

You can read more about what it is, who needs to get an ABN, and the advantages of having one in our article What is an ABN?

Before you apply for an ABN

Applying for an ABN is a key step in starting your business. Before you apply, check whether you can get an ABN. You can apply if you are starting or running an enterprise in Australia.

How much does an ABN cost?

Applying for an ABN through the Australian Business Register (ABR) is free. While some third-party services or tax agents may charge a fee to complete the application on your behalf, you can do it yourself at no cost.

Be prepared: five things to check before you apply for an ABN

Preparation saves time during your ABN application. Gather these five essential items before you start:

1. Australian Company Number (if applicable)

If your business is a company, you must first register with ASIC. ASIC then gives you a nine digit Australian company number (ACN). You'll receive:

• Australian Company Number (ACN) or Australian Registered Body Number (ARBN)
• Director ID number (required for all directors)
• MyGovID account for online applications

You'll also need to apply for a Director ID number and set up your MyGovID.

2. Business details

Provide these key details:

• Legal business name: Use your registered business name or personal name if operating as a sole trader
• Main business activity: your primary income source, for example consulting, retail or construction
• Business locations: Street address, phone, and email for each physical location

3. Tax file numbers

Providing tax file numbers (TFNs) helps your application go through straight away. You need:

• Your TFN (if you're an Australian resident over 18)
• Business associates' TFNs (partners, directors, or key stakeholders)
• Alternative: if you do not provide TFNs, the Australian Business Register may take up to 20 business days to approve your ABN

4. Contact and associate details

Authorised contact (can make ABN changes):

• Personal details: Name, position, phone, email, addresses
• Professional details: Tax or BAS agent registration number (if applicable)

Individual associates (partners, directors):

• Personal information: Name, date of birth, position, TFN
• Alternative: Residential address if no TFN provided

Organisation associates:

• Business details: Legal name, ACN/ARBN, ABN, TFN
• Alternative: Address and formation date if no TFN provided

5. Business start date

Your ABN starts from the date you choose. Pick the date you will begin trading. You must choose a date within six months of your application.

How do I get an ABN?

You can apply for an ABN for free through the government. Choose how you want to apply.

DIY online application:

• Cost: Free if you apply through the Australian Government’s Business Registration Service
• Time: Instant approval with TFNs provided
• Best for: Straightforward business structures

Tax agent application:

• Cost: Agent fees vary (typically $50-$200)
• Benefit: Professional guidance and error prevention
• Best for: Complex business structures or first-time applicants

What happens when I apply for an ABN?

The Australian Business Register usually processes ABN applications quickly, with three possible outcomes:

A successful application

Instant approval: You receive your 11-digit ABN immediately with complete TFN information provided.

Next steps:

• Save your confirmation: Print or download your ABN certificate
• Apply for additional registrations: GST, PAYG withholding, business name
• Manage privacy: Request non-disclosure of sensitive details on the Australian Business Register

A reference number

Reference number issued: Additional verification required, processing takes up to 20 business days.

What happens next:

• Tracking: Monitor progress through ABN Lookup using your reference number
• Communication: You'll be contacted if additional information is needed
• Final approval: Confirmation letter and ABN delivered within 14 days of approval

An unsuccessful application

Application refused: You receive a refusal number and detailed explanation within 14 days.

Your options:

• Review the reasons: Detailed explanation letter explains specific issues
• Request review: You have legal right to challenge the decision
• Reapply: Address the issues and submit a new application

What other registrations do I need?

Save time by bundling registrations during your ABN application. Consider these common business requirements:

GST registration:

• Mandatory threshold: According to the ATO, you must register for GST when your business has a GST turnover of $75,000 or more, or $150,000 for not-for-profits
• Registration deadline: Once you are required to register for GST, you need to do so within 21 days of reaching the threshold
• Monitoring: Check monthly if approaching the threshold
• Voluntary registration: Available for businesses under the threshold

Learn more about registering for GST.

Pay as you go (PAYG) withholding registration:

• Required when:Hiring employees or paying contractors
• Purpose: Collect tax from payments to meet year-end obligations
• Applies to: Employee wages and some business payments

Learn more about registering for PAYG.

Business name registration:

• Required when: Operating under a name different from your personal name
• Examples: "Smith Consulting" requires registration, "John Smith" does not
• Duration: registration lasts 1–3 years depending on your choice

Learn more about registering a business name.

What happens once I have my ABN?

Keep your ABN details current to avoid penalties and maintain business legitimacy.

Update requirements:

• Deadline: You are required by law to notify the ABR of changes within 28 days.
• Common changes: Address, contact details, business activity, structure
• Methods:ABR online services or through your tax agent

Cancel your ABN when:

• Business sold: New owner needs their own ABN
• Business closed: No longer trading or operating
• Location change: Moving operations outside Australia

You must cancel your ABN if your business meets any of these criteria.

Grow your business with Xero

Once you have your ABN, use Xero's cloud accounting software to simplify your finances, giving you more time to focus on what you do best: running your business.

Try Xero for free to see how Xero’s online accounting software can support your business.

FAQs on applying for an ABN

Here are answers to some common questions about applying for an ABN.

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

If your turnover is less than $75,000, you usually do not need to register for GST, but you may still need an ABN. However, some businesses, like those providing taxi travel (including ride-sourcing), must register for GST regardless of turnover. An ABN is required if you are running a business, regardless of income. It helps you claim business tax deductions and makes your invoices look professional.

Can I apply for my own ABN or do I need an agent?

You can apply for your own ABN for free using the online Business Registration Service. The process is straightforward. However, if you have a complex business structure or prefer professional guidance, you can use a registered tax or BAS agent to apply on your behalf, which will involve a fee.

How long does it take to get an ABN?

If you provide all the required information, including your tax file number (TFN), you can receive your ABN immediately after completing the online application. If details need to be manually checked, it can take up to 20 business days.

What happens if I need to update my ABN details later?

You must update your ABN details within 28 days of any changes, such as a new business address or contact information. You can update your details online through the ABR website or ask your tax agent to do it for you.