Starting a small business: ABN, GST registration and tax invoices

Australian Business Register (ABR) / Australian Taxation Office (ATO) / business.gov.auVerified 22 Oct 2026Official pages checked daily

If you run your own business in Australia, take on freelance work or earn money through a platform (ride-share, food delivery and so on), you usually need an ABN (Australian Business Number) first. Applying for an ABN at abr.gov.au is free; many of the 'ABN websites' that charge a fee are scams. GST is 10%. You must register for GST once your turnover reaches A$75,000 a year, and ride-share drivers must register before their first trip whatever they earn. Once registered, you lodge a BAS on time, and the invoices you give customers must meet the tax invoice requirements.

Key facts

ABN application fee: Free. Apply online through the Australian Government's Australian Business Register (abr.gov.au)¹
Who can get an ABN: People who are running, or starting to run, an enterprise (a business). Not everyone is entitled to one. Applying for an ABN, registering for GST or claiming GST refunds when you are not entitled can lead to prosecution²
Employees cannot use an ABN: Work you do as an employee (including as an apprentice, trade assistant or labourer) cannot be done under an ABN, even if you or your employer calls it 'contracting'. An employer should not make getting an ABN a condition of hiring you²
How long it takes to get an ABN: If your details are complete, you get your 11-digit ABN immediately when you finish the online application. If your application needs review, you get a reference number and the review takes up to 20 business days. If you are refused, you get a letter within 14 days explaining why and your review rights¹
Changes to your details: Update your ABN details within 28 days of becoming aware of a change. If you change your business structure (for example from sole trader to company), you must cancel the old ABN and apply for a new one¹
GST rate: 10%, applied to most goods and services sold or consumed in Australia. Some items are GST-free⁴
GST registration threshold: You must register when your GST turnover (total income excluding GST, not profit) reaches A$75,000 or more (A$150,000 for non-profit organisations). A new business that expects to reach the threshold in its first year must also register. You must register within 21 days of reaching the threshold³
Ride-share drivers must register for GST: Ride-sourcing counts as a taxi service under GST law. Whatever you earn, you must have an ABN and register for GST before your first trip. If you already have an ABN but are not registered for GST, register within 21 days of starting to drive. You can only choose monthly or quarterly reporting⁵
Food delivery and other platform work: Providing services through a digital platform (food delivery, odd jobs and so on) as a business follows the general rule: you must register for GST only when your GST turnover reaches A$75,000. If you are an employee, you cannot apply for an ABN and do not need to register for GST⁶
Voluntary registration, and what happens if you do not register: You can register voluntarily below the threshold; once registered, you generally stay registered for at least 12 months. If you should have registered but did not, you may have to pay GST on all sales from the date you should have registered, even if you did not charge your customers GST, plus possible penalties and interest³
BAS reporting periods and due dates: If your GST turnover is under A$20,000,000 (A$20 million) you lodge a BAS quarterly: the July–September quarter by 28 October, October–December by 28 February, January–March by 28 April, and April–June by 28 July. Lodging online may give you an extra 2 weeks (except for the second quarter). If you registered voluntarily and your turnover is below A$75,000, you can report annually (by 31 October)⁸
Tax invoice requirements: If a customer asks, you must give a tax invoice within 28 days (except for sales of A$82.50 or less including GST). An invoice for less than A$1,000 must clearly show 7 things: that it is a tax invoice, the seller's identity, the seller's ABN, the date, a brief description of the goods or services with quantity and price, the GST amount (or the words 'Total price includes GST'), and which items include GST. Invoices of A$1,000 or more must also show the buyer's identity or ABN⁷
Sole trader vs company: A sole trader is cheap to set up (the ABN is free; registering a business name costs A$47 for one year or A$108 for three years). Business income is your personal income and goes in your individual tax return, but you are personally liable for all business debts. A company is a separate legal entity: registering a proprietary limited company costs A$636, plus an ASIC annual review fee. It lodges its own tax return and keeps more records; the company's money belongs to the company, and directors are personally liable for PAYG withholding and super debts⁹
Record keeping: A sole trader must keep financial records (including tax returns) for 5 years⁹
Fake ABN website scams: The ATO warns that fake websites on social media charge fees to 'arrange' TFNs and ABNs, take the money, do nothing and steal personal information. Applying for a TFN through the ATO and for an ABN through the ABR is free. If you are unsure, call the ATO scam hotline on 1800 008 540¹⁰

Who is this for, and what are the requirements?

An ABN is only issued to individuals or entities that are running or starting a business (enterprise). Signs of a business include: intending to make a profit, repeated activity, commercial scale, and running it in an organised, business-like way with records.
If you have not yet started trading, you must already have done some start-up work (for example advertising or building a website, buying equipment, getting licences or insurance, quoting or tendering, consulting an accountant) and be able to show evidence if the ABR reviews your application.
Work done as an employee cannot be done under an ABN. If an employer tells you to 'get an ABN and work as a contractor' to avoid tax and super, this may be sham contracting; you can ask the ATO or the Fair Work Ombudsman.
Whether a temporary visa holder can get an ABN depends on your visa conditions and whether you are genuinely running a business. The official websites do not address this directly, so check your visa conditions or ask a registered migration agent.
GST registration requires an ABN. You must register if you reach the threshold or do ride-sourcing.

How do I do it? Steps and process

Make sure you are running a business, not working as an employee
Read the ABR's ABN entitlement guidance. Do you carry the risk, find your own customers, set your own prices and work for more than one client? If you only work by the hour for one 'boss' who sets your roster, you are an employee and should not be using an ABN.
Get your details ready
Your TFN (applications with a TFN are processed faster), identity details, business structure (sole trader, partnership or company), a description of your business activity and its start date, and details of associates. If you are setting up a company, register it with ASIC first.
Apply for your ABN free at abr.gov.au
Go to Apply for an ABN on abr.gov.au and follow the prompts. If your details are complete, you get your 11-digit ABN straight away; save the confirmation. You can register for GST, PAYG withholding and other registrations in the same application. Once you have your ABN, you can check your details on ABN Lookup; if you have privacy concerns, you can ask for some details not to be published.
Work out whether you need to register for GST
Each month, work out your GST turnover for the past 12 months and the next 12 months. If it reaches A$75,000, register within 21 days. Ride-share drivers must register before their first trip whatever they earn. You can register through the ATO's Online services for business, by calling the ATO business line, or through a registered tax or BAS agent.
Issue invoices
Once you are registered for GST, include 10% GST in the price of taxable goods or services and issue invoices that meet the tax invoice requirements (the words 'tax invoice', your identity and ABN, the date, a description of the items, and the GST amount). If you are not registered for GST, you cannot charge GST on your invoices. Invoices can be sent electronically, for example as a PDF.
Lodge your BAS and pay GST on time
After you register for GST, the ATO sends you a BAS about 2 weeks before the end of each reporting period. Sole traders can lodge online through Online services for individuals and sole traders via myGov, or use accounting software or an agent. You must lodge a 'nil' BAS even if you had no business in that period. Put the GST you collect aside and pay it to the ATO when due; you can claim back the GST included in your business purchases.
Keep records and keep your details up to date
Keep records and invoices for all income and expenses (at least 5 years). If your address, contact details or business activity change, update the ABR within 28 days. If you stop trading, cancel your ABN and GST registration.

What documents do I need?

Your TFN (tax file number)
Identity details (passport, driver licence and so on)
A description of your business structure and activity, and the expected start date
For a company: ASIC company registration details (ACN)

What should I watch out for?

When you search for 'apply ABN', the top results are often third-party websites that charge a fee. Check that the address is abr.gov.au. The government application is free and takes only a few minutes. If you have been scammed, report it to the ATO and Scamwatch.
An ABN does not replace a TFN: you still lodge your personal tax return with your TFN. The ABN is for invoicing customers, avoiding PAYG withholding on payments made to you, and claiming GST credits.
The ABR can carry out an ABN entitlement review at any time and ask you to prove that you have genuinely been running or setting up a business since the start date on your application, so keep good records from the beginning.
Ride-share drivers cannot choose annual GST reporting. The platform may issue tax invoices on your behalf, so give the platform your ABN.
The ATO's Registering for GST page lists 'earning income through the sharing economy or a digital platform (such as food delivery)' as a situation where you need to register and points to its Sharing economy guidance, while its Providing services page says registration is only compulsory once GST turnover reaches A$75,000. The two pages are not fully consistent, so for food delivery and similar platform work, confirm directly with the ATO.
Platform and business income usually has no tax withheld, so you may owe income tax at the end of the year. The ATO suggests setting money aside in advance.
A company costs more and has more obligations than a sole trader, and you do not need one when you are just starting. You can start as a sole trader and change later as the business grows, but changing structure means getting a new ABN.
This page is a plain-English summary of public information. Check the ABR, ATO and business.gov.au websites for your own situation. It is not tax, legal or immigration advice. For complex situations, use a registered tax agent (check their registration with the Tax Practitioners Board).

Common questions

Do I need an ABN for freelance or side work in Australia? How do I apply, and does it cost anything?

Yes, if you are genuinely running a business: you find your own customers, set your prices and carry the risk. If you only work by the hour for one boss, you are an employee and cannot use an ABN. Apply online through the Australian Business Register at abr.gov.au. It is free, and if your details are complete you get your 11-digit ABN immediately; applications that need review take up to 20 business days.

My boss wants me to get an ABN and work for him as a contractor. Is that normal?

No, this is not how it should work. Work done as an employee cannot be done under an ABN, even if it is called 'contracting', and an employer should not make getting an ABN a condition of hiring you. If you work by the hour for one boss who sets your roster, you are an employee. Being pushed onto an ABN to avoid tax and super may be sham contracting; ask the ATO or the Fair Work Ombudsman.

Do I need to register for GST to drive for Uber or deliver food?

For ride-share driving, yes. Ride-sourcing counts as a taxi service, so you need an ABN and must register for GST before your first trip, whatever you earn, with monthly or quarterly reporting only. Food delivery and similar platform work follow the general rule: you must register once your GST turnover reaches A$75,000. The ATO's pages are not fully consistent on platform work, so confirm with the ATO. Employees do not need an ABN or GST.

At what turnover do I have to register for GST, and what is the GST rate?

GST is 10%. You must register once your GST turnover (total income excluding GST, not profit) reaches A$75,000 or more, or A$150,000 for a non-profit organisation. A new business that expects to reach the threshold in its first year must also register. Register within 21 days of reaching it. You can register voluntarily below the threshold, but you then generally stay registered for at least 12 months.

What is a BAS and how often do I lodge it?

A BAS (business activity statement) is the form you use to report and pay GST to the ATO. If your GST turnover is under A$20,000,000, you lodge quarterly: by 28 October, 28 February, 28 April and 28 July. Lodging online may give you an extra 2 weeks, except for the second quarter. If you registered voluntarily and your turnover is below A$75,000, you can report annually by 31 October. You must lodge a nil BAS even in a period with no business.

What is the difference between a sole trader and a company?

A sole trader is cheap to set up: the ABN is free and a business name costs A$47 for one year or A$108 for three years. Business income goes in your personal tax return, but you are personally liable for business debts. A company is a separate legal entity: registration costs A$636 plus an ASIC annual review fee, it lodges its own tax return and keeps more records, and directors are personally liable for PAYG withholding and super debts.

What must I put on an invoice for it to count as a tax invoice?

For sales under A$1,000, a tax invoice must show 7 things: the words 'tax invoice', the seller's identity, the seller's ABN, the date, a brief description of the goods or services with quantity and price, the GST amount or the words 'Total price includes GST', and which items include GST. Invoices of A$1,000 or more must also show the buyer's identity or ABN. If a customer asks, give the invoice within 28 days. Only GST-registered businesses can charge GST.

A website says it will get me an ABN for a fee. Is it legitimate?

No. Applying for an ABN through the ABR at abr.gov.au, and for a TFN through the ATO, is free and takes a few minutes. The ATO warns that fake websites on social media charge fees, take the money, do nothing and steal personal information. Check that the web address is abr.gov.au. If you are unsure, call the ATO scam hotline on 1800 008 540, and report scams to the ATO and Scamwatch.

Answers are based on the verified content of this page — the official source always prevails.

Where can I check the official information?

Register for an Australian Business Number (ABN)business.gov.au · business.gov.au
ABN entitlementAustralian Business Register · abr.gov.au
Registering for GSTAustralian Taxation Office · ato.gov.au
How GST worksAustralian Taxation Office · ato.gov.au
Ride-sourcing – RegistrationsAustralian Taxation Office · ato.gov.au
How GST applies when providing servicesAustralian Taxation Office · ato.gov.au
Tax invoicesAustralian Taxation Office · ato.gov.au
Due dates for lodging and paying your BASAustralian Taxation Office · ato.gov.au
Difference between a sole trader and a companybusiness.gov.au · business.gov.au
ATO urges vigilance following new scams approachAustralian Taxation Office · ato.gov.au

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