What an ABN is
An ABN is an 11-digit identifier issued through the Australian Business Register. It lets customers and government agencies identify your business. It is free to apply for through the ABR (be careful of sites that charge a fee). Having an ABN is not the same as being registered for GST.
When you need one
If you are carrying on an enterprise, which includes freelancing, contracting and running a small business, you are generally eligible, and expected, to have an ABN. Hobbies and employment are not enterprises. If you are unsure, the ABR has an entitlement checker, and the ATO explains the difference.
What if you invoice without one
If you supply goods or services in the course of an enterprise and do not quote an ABN, the business paying you is generally required to withhold tax from the payment at the top marginal rate plus the Medicare levy, which is currently 47%. You recover it only by lodging a tax return. You can avoid this by quoting your ABN, or in limited cases by giving a statement about why you do not have one. Check the ATO guidance for exceptions.
ABN versus GST registration
| ABN | GST registration | |
|---|---|---|
| Required for | Carrying on an enterprise | Turnover of A$75,000 or more (A$150,000 for non-profits), or by choice |
| Show on invoice | Yes | Charge GST and issue tax invoices |
| Claim GST credits | No | Yes |
What to show on an invoice
- Your ABN and your business name.
- The words “Tax invoice” if you are registered for GST and the sale is over A$82.50 including GST.
- The date, a description and the price, with the GST amount or a statement that the total includes GST.
The Australian invoice generator labels the fields correctly and switches to a “Tax invoice” layout when GST is on.
- The no-ABN withholding rate (47%) and the exceptions are set by the ATO. Confirm the current figure.
Frequently asked questions
Is an ABN free?
Yes, through the Australian Business Register. Avoid third-party sites that charge.
Can I invoice without GST?
Yes, if you are not registered for GST. Show your ABN and say you are not registered, or simply charge no GST.
What is a tax invoice?
A document that lets a GST-registered buyer claim GST credits. It needs specific details and is only issued by GST-registered sellers.
Do I need an ABN for a side job?
If it is a business activity, probably yes. The ABR checker helps you decide.
What if a customer asks for a TFN?
A TFN is for your personal tax. Business-to-business invoices use your ABN. Do not give a tax file number on an invoice.
Related topics
- ABN invoice
- Australian invoice template
- tax invoice Australia
- no ABN withholding
- sole trader invoice
- GST invoice
- ATO invoice