Thinking of starting a business or freelancing in Australia, but don’t know how to set up an ABN?
It can seem like a bit of a headache—government sites, forms, rules—but it really doesn’t have to be that tricky. A lot of people chuck it in before they even get started. They get swamped by confusing lingo, a million open tabs, and second-guess if they’re doing it right. It’s even more daunting for young Aussies and students who just want to kick off a side hustle or start freelancing.
Good news: we’ll guide you through the whole thing. In this guide, you’ll learn exactly how to set up an ABN in Australia the right way—and it’s easier than you’d think! Whether you’re a student looking to sell handmade gear online or someone keen to get a legit business going, this one’s for you. We’ve broken it all down into simple, easy-to-follow steps.
What Is an ABN and Why Do You Need One?
An Australian Business Number (ABN) is like your business ID. It’s a unique 11-digit number that tells the government—and your customers—that you’re officially in business.
Why do you need it?
- To invoice clients
- To register for GST (if you earn $75,000+)
- To open a business bank account
- To register a business name
- To show you’re legit
Knowing how to set up an ABN means understanding what it’s for. It’s not just a number—it’s your licence to trade, grow, and work legally. Whether it’s weekend gigs or a full-time hustle, an ABN gives you access to things like merchant accounts, supplier invoices, and tax deductions.
Think of it as your business passport. You can’t get far without one. It also ensures that clients and customers take you seriously, because showing that you have a registered ABN application form proves that you’re committed.
And remember, setting up an ABN is more than ticking a box. It’s a big step in becoming your own boss. That’s why knowing how to set up an ABN the right way will save you time and stress down the road.
Who Is Eligible to Apply for an ABN?
Anyone running or starting a business in Australia can apply. This includes:
- Sole traders (freelancers, tradies, content creators)
- Partnerships
- Companies
- Trusts
Not sure if your idea counts as a business? Here’s a tip: if you’re making money and have repeat clients or customers, chances are it does. If you’re offering a service, selling a product, or freelancing—even as a teen—you may qualify.
But if it’s a hobby (like baking for the school fair once a year), you might not need one. The government checks your intent, how often you earn, and how serious your setup is. If you advertise, earn regularly, or have people relying on your work—you’re likely in business.
Still unsure? Reach out to ISM Accountants. We’ll help you figure out if you need an ABN and guide you through your next steps. It’s better to know now than get into trouble later.
Understanding how to set up an ABN includes knowing whether you qualify—and that’s why this step is so important.
What Information Do You Need Before Applying?
Before jumping into your ABN application, get your details sorted. Knowing how to set up an ABN properly means being prepared. Here’s what you’ll need:
- Your Tax File Number (TFN) – links your ABN to your personal tax
- Your business structure – sole trader, company, partnership, or trust?
- Short description of your business activities – what kind of work you do
- Business and contact address – so the ATO can reach you
- A valid email and phone number – for verification and updates
Understanding how to set up an ABN includes being organised from the start. Rushing without these could delay approval or cause errors. If you’re unsure about your structure or wording, don’t guess—ask ISM Accountants for help. We’ll walk you through it, stress-free.
Recommended Read: I Lost My ABN: Where Can I Find the Lost ABN?
How to Apply for an ABN (Step-by-Step)
How to Apply for an ABN is all about completing a simple online form through the official ABR website. It’s a straightforward process that takes just a few minutes if you have all your info ready.
Step 1: Go to the ABR Website
Visit abr.gov.au and click on “Apply for an ABN.”
Step 2: Choose Your Business Structure
Are you a sole trader? Company? Pick the one that fits you best.
Step 3: Fill in Your Personal Info
This includes your name, TFN, contact details, and business address.
Step 4: Describe Your Business Activity
This is important for new business registration in Perth. Write a simple sentence about what your business does (e.g., “Freelance graphic design services”).
Step 5: Submit and Wait
You’ll usually get your ABN instantly, unless something needs checking.
Still unsure about anything? ISM Accountants can handle the paperwork for you and make sure everything’s perfect.
What Happens After You Apply?
Once your application’s done, you’ll usually get your ABN by email in minutes. Occasionally, if more details are needed, it might take a couple of days—but that’s totally normal.
Here’s what to do next:
- Use your ABN on invoices and receipts to show your business is registered
- Register for GST – if your business earns (or is likely to earn) over $75,000
Keep your current details – update your ABN if you move or change structure
Knowing how to set up an ABN correctly means you won’t be left wondering what to do next. If you’re unsure about GST for small businesses, PAYG withholding, or updating your details, ISM Accountants can help. We offer personalised support to make managing your business simple and stress-free, so you can focus on what you do best.
Common Mistakes to Avoid When Setting Up an ABN
Before you dive into how to set up an ABN, know the common mistakes that trip people up. Avoiding these means less stress and fewer headaches later.
Mistake 1: Picking the wrong business structure
Can cause tax and legal issues down the track.
Mistake 2: Giving incorrect info
Delays the process and might result in rejection.
Mistake 3: Registering when it’s just a hobby
If you don’t meet the criteria, your ABN might get knocked back.
Recommended Read: When Should I cancel my ABN?
How Can ISM Accountants Help You?
Starting a business can be confusing, especially when it comes to ABNs and tax. That’s where ISM Accountants step in. With expert advice and years of experience, they’ll help you navigate everything with confidence.
Final Thoughts
Setting up an ABN doesn’t need to be complicated or stressful. Knowing how to set up an ABN is your first real step into business ownership. Whether you’re just testing the waters or have big plans, getting your ABN sorted is a game-changer.
Still unsure or want to avoid rookie mistakes? ISM Accountants offer expert support and friendly guidance to get your business started the right way.
Ready to get started? Contact ISM Accountants for friendly, expert help today.
FAQ's
It’s usually instant if everything is correct. If a manual review is needed, it might take a few extra days.
Yes, applying through the official government site is 100% free. Be cautious of third-party sites that may charge a fee.
Only if you run separate businesses with different structures.
Yes, if they’re earning income from business activities in Australia. This includes freelancing, selling products, or services.
Yes, you can cancel it anytime if you stop trading. Simply visit the ABR website and follow the cancellation steps.
