Do I need an ABN?

Whether a sole trader will require an ABN depends on your personal circumstance.

If you are a sole trader

Some questions to consider include:

• Is the activity being undertaken for commercial reasons?
• Is your main intention, purpose or prospect to make a profit?
• Do you regularly and repeatedly undertake your activity?
• Is your activity planned, organised and carried out in a businesslike manner?

If you have answered YES to most of these questions, you will most likely be required to obtain an ABN to carry out your activity.

If you are a company

Most registered companies in Australia will be required to register for an ABN if they are carrying out business activities. This includes, but is not limited to:

• Handling invoices;
• Opening a business bank account;
• Paying employee salaries

Amongst other things

Furthermore, entities looking to register business names must also have a valid and active ABN.

All information provided on this webpage is general information about our products and services. Nothing on this webpage is intended to be professional advice of any kind and should not be relied on as such. You should obtain specific financial, legal or other professional advice before relying on the content of this webpage. By not seeking such advice, you accept the risk that the information on this webpage may not meet the specific needs of your business. Our liability is limited to the maximum extent permitted by applicable law in accordance with our website terms and conditions.

Updated — Mar 13, 2019