How to Get an ABN: Step-by-Step Guide for Sole Traders (2025)

If you’re starting a business as a sole trader in Australia, getting an Australian Business Number (ABN) is essential. An ABN is your business’s unique 11-digit identifier, required to operate legally, issue invoices, register for GST, and access tax benefits. In this guide, we’ll show you how to get an ABN in 2025, step by step, so you can start your business smoothly and stay fully compliant.

What Is an ABN and Why Do You Need One?

An Australian Business Number (ABN) is a unique 11-digit identifier issued by the Australian Taxation Office (ATO) through the Australian Business Register (ABR). Think of it as your business’s fingerprint—unique and essential for all your commercial dealings.

As a sole trader, you’ll need your ABN to:

• Issue proper tax invoices to clients and customers
• Register for Goods and Services Tax (GST) if your turnover exceeds the threshold
• Claim business tax deductions and GST credits
• Avoid having tax withheld from payments you receive
• Set up your business name registration through the Australian Securities and Investments Commission (ASIC)
• Open a business bank account
• Register an Australian domain name for your website
• Engage in Pay As You Go (PAYG) transactions

Without an ABN, businesses paying you may be required to withhold tax at the highest marginal rate—a significant financial disadvantage.

How to Get an ABN: Step-by-Step Process

Step 1: Confirm Your Eligibility

Before learning how to get an ABN, you must ensure you’re entitled to one. The ATO grants ABNs only to entities carrying on an enterprise. This means your activities need to be genuine business operations, not a hobby or casual employment.

You’re eligible for an ABN if you’re:

• Operating as a sole trader conducting regular business activities
• Planning to start a business with profit-making intentions
• Providing professional or trade services on a contract basis
• Generating or intending to generate business income

Step 2: Gather Required Information

Successful ABN registration depends on having the correct information readily available. Before starting your application, collect:

Personal Details:

• Your complete legal name, exactly as shown on your identification documents
• Date of birth
• Residential address
• Contact phone number and email address
• Tax File Number (TFN)—having this speeds up processing significantly

Business Information:

• Your intended business start date
• Description of your main business activities
• Expected source of business income
• Whether you’ll need GST registration (required if turnover exceeds $75,000)
• Business location or operating address
• Any previously held ABNs

For business name registration (if you’re trading under a name different from your own), you’ll also need to check name availability on the ASIC database.

Step 3: Complete Your ABN Registration Online

The most efficient way to handle ABN registration is through the official Australian Business Register website. The application process typically takes only 10 to 20 minutes to complete.

Here’s what to expect during the online application:

1. Visit the ABR website and select “Apply for an ABN”
2. Answer eligibility questions about your business structure (select “Sole Trader”)
3. Provide your personal identification details
4. Enter your Tax File Number for faster processing
5. Describe your business activities accurately
6. Specify when you need your ABN to be active
7. Choose whether to register for additional services like GST at the same time
8. Review all information carefully before submitting

Pro tip: Setting up a myGov account beforehand simplifies the ABN registration process and makes future government interactions easier. If you want professional assistance with ASIC filings, an ASIC registered agent can help streamline the process and reduce errors.

Step 4: Business Name Registration (If Required)

If you plan to trade under a name different from your own legal name, you’ll need to complete business name registration. You can do this simultaneously with your ABN application through the Business Registration Service, or separately through ASIC after receiving your ABN.

Business name registration costs currently sit at $39 annually or $91 for three years. Remember, registering a business name doesn’t give you trademark protection—it simply allows you to legally trade under that name.

Step 5: Receive Your ABN

If everything processes smoothly and your details match ATO records, you’ll see your ABN immediately on screen. You’ll also receive a confirmation letter within 14 days.

If your application needs manual review, you’ll receive a reference number. The ABR aims to complete these reviews within 28 business days, and they’ll contact you if additional information is needed. You can check your application status at any time using ABN Lookup. Maintaining tax compliance from day one ensures smooth operations and avoids penalties.

Common Reasons for ABN Application Delays

Understanding how long does it take to get an ABN helps you avoid unnecessary waiting. Applications typically face delays when:

• Personal details don’t match ATO records exactly
• The business activity description is unclear or insufficient
• Required information is missing or incomplete
• You haven’t provided a Tax File Number
• Your eligibility isn’t clearly demonstrated

To prevent delays in your ABN registration, triple-check all information before submitting. Even minor spelling differences in your name can trigger manual review.

What Happens After You Get Your ABN?

Once you’ve successfully completed ABN registration, your number becomes active either immediately or on your specified start date. Your ABN will appear on ABN Lookup within 24-48 hours, making it searchable by clients and other businesses.

From this point forward:

• Include your ABN on all invoices, quotes, and business documents
• Keep your ABN details current—you have 28 days to update changes
• Use your ABN when registering for GST if your turnover exceeds $75,000
• Display your ABN (and business name if registered) on all business communications

Is ABN Registration Free?

Yes, ABN registration through the official Australian Business Register is completely free. Be cautious of third-party services that charge fees for lodging applications on your behalf. While they may offer assistance, you can easily complete the process yourself at no cost.

Key Takeaways for Sole Traders

Learning how to get an ABN doesn’t have to be complicated. The process is straightforward when you:

• Confirm your eligibility before applying
• Gather all required documentation upfront
• Complete your application accurately online
• Provide your Tax File Number for instant processing
• Consider business name registration if trading under a different name

Most sole traders receive their ABN immediately, making it one of the quickest business registrations in Australia. However, understanding how long does it take to get an ABN helps you plan accordingly—instant for most applications, up to 28 days if manual review is required.

Need Help with Your ABN?

At TaxByte Accountants, we’ve guided countless sole traders through the ABN registration process. From ABN registration to business name registration, GST setup, and ongoing tax compliance, we’re here to support your business journey every step of the way.

Our experienced team, including trusted tax accountants in Sydney, can help ensure your ABN application is completed correctly the first time, minimising delays and getting you trading faster. We also provide comprehensive accounting and tax services tailored specifically for sole traders and small businesses.Ready to get started? Contact TaxByte Accountants or Book your Slot today, and let’s get your business properly registered and compliant from day one.