Short answer
Applying for an ABN (Australian Business Number) is free at the Australian Business Register (abr.gov.au), takes 10–15 minutes online, and most sole traders get their ABN instantly if they provide a TFN. You only need one if you're genuinely running or starting an enterprise — contracting, freelancing, gig work, or a business. Employees on payroll don't need (and aren't entitled to) an ABN.
Never pay a website to "register your ABN" — paid lookalike services charge $50–$100 for a form the government provides free.
Do you actually need an ABN?
| You need an ABN | You do NOT need an ABN |
|---|---|
| Food delivery (Uber Eats, DoorDash, Menulog) as an independent contractor | A normal job on payroll — café, retail, office (that's a TFN) |
| Rideshare driving (Uber, DiDi, Ola) | A one-off hobby sale (selling your old furniture) |
| Freelancing you invoice for — design, coding, photography, consulting | Casual or part-time employment, even with multiple employers |
| Private tutoring / cleaning / trades you run yourself | Receiving a salary plus occasional reimbursements |
| Running any sole-trader business or side hustle with a profit intention | An activity with no repetition or commercial intent (the "hobby" line) |
The legal test: you're entitled to an ABN only if you're carrying on (or starting) an enterprise in Australia. The ABR application asks questions to establish this — answering dishonestly to get an ABN you're not entitled to can lead to it being cancelled retrospectively.
Sham contracting warning: if a boss offers you a normal job — set shifts, their equipment, their supervision — but says "get an ABN and invoice us", that's likely sham contracting, which is illegal under the Fair Work Act. You'd lose super, leave, and workers' comp, and carry the full tax burden. A legitimate employer puts employees on payroll with a TFN. See our TFN vs ABN guide for the full breakdown.
What to have ready before you apply
- Your TFN — optional in theory, but providing it is what makes the ABN come through instantly instead of a manual review of up to 28 days. No TFN yet? Apply for your TFN first
- Identity details — name, date of birth, contact details
- Business activity description — plain words are fine ("food delivery", "freelance graphic design")
- Start date — when your enterprise begins (can be today)
- Business address and contact details — your home address is fine for a sole trader
How to apply (step by step)
Step 1: Confirm you're entitled to an ABN
Run your situation against the table above. The application itself will ask whether you're carrying on an enterprise — gig contracting, freelancing and sole-trader businesses all qualify; employment does not.
Step 2: Choose your business structure
Most individuals want sole trader — it's you, trading under your own name and TFN, taxed at individual rates. Companies, partnerships and trusts get their own ABNs as separate entities (see "Other structures" below). If you're delivering food or freelancing on the side, sole trader is almost certainly the answer.
Step 3: Apply free at abr.gov.au
Go to the Australian Business Register (abr.gov.au) and start the ABN application. Fill in your identity, TFN, business activity and addresses. It takes 10–15 minutes.
Stick to the government site. Search results often surface paid "ABN registration" services first — they add a fee for nothing and you hand your TFN to a middleman.
Step 4: Get your ABN — usually instantly
If your identity matches ATO records (that's what the TFN is for), your ABN appears on screen immediately and you can start using it the same day. If anything needs manual review, the ABR has up to 28 days — you'll be contacted if more information is needed. Your ABN details become publicly searchable on ABN Lookup.
Step 5: Register for GST — but only if required
- Rideshare drivers (Uber, DiDi, Ola): GST registration is mandatory from your first dollar — the ATO treats ride-sourcing like taxi travel with no turnover threshold.
- Everyone else (including food delivery only): GST registration is only required once turnover reaches $75,000/year. Below that it's optional, and most side hustles are better off without the quarterly BAS workload.
If you do both rides and food delivery on the same ABN, the ride-sourcing rule applies and you register for GST.
Step 6: Set up invoicing and records from day one
- Put your ABN on every invoice — without it, business customers must withhold 47% from payments
- Open a separate bank account for business income (not legally required for sole traders, but it makes tax time dramatically easier)
- Track income and expenses as you go — fuel, phone, equipment, insurance
The money habit that saves you in July
Nobody withholds tax from ABN income. Whatever lands in your account is pre-tax, and the bill arrives with your first tax return — often a shock of several thousand dollars.
Doing delivery work specifically? See the dedicated guides for Uber Eats drivers and DoorDash drivers.
Special situations
International students
Students can hold an ABN — the visa doesn't prevent it, and food delivery on a student visa is common. The enterprise test still applies, and so does the sham-contracting warning: an ABN is for genuine contracting, not for an employer dodging payroll. Watch your visa's work-hour conditions — ABN hours count.
Non-residents
You can apply for an ABN as a non-resident if you're carrying on an enterprise connected with Australia, but expect extra identity-proof steps and slower processing — the instant online path generally needs an Australian TFN to match against.
Companies, partnerships and trusts
These get their own ABN as a separate entity. For a company, register the company with ASIC first (which issues the ACN and charges a registration fee), then apply for the company's ABN — the ABN itself is still free. The same ABR application handles partnership and trust ABNs; you'll need the entity's TFN and the details of partners or trustees.
Keeping your ABN clean
- Update your details within 28 days of any change (address, contact, activity) — outdated ABN records are the most common reason payments get flagged
- Cancel your ABN when you stop trading — an active ABN with no activity invites ATO review and keeps you on the BAS/instalment treadmill
- Anyone can verify your ABN on ABN Lookup (abr.business.gov.au) — clients will check it before paying your first invoice
Before tax season hits
ABN income means your tax return now has a business schedule — more fields, more records, and more deductions to get right. Keep receipts as you go, estimate what you'll owe with the tax refund calculator, and if your year spans employment plus ABN income plus deductions you're not sure about, that's exactly the situation where a tax agent pays for itself.
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*