ABN (Australian Business Number) – Frequently Asked Questions – Honcho Support

What is an ABN?

An Australian Business Number (ABN) is a unique 11-digit number issued by the Australian Taxation Office (ATO). It’s used to identify your business when interacting with other businesses, government departments, and for tax-related purposes.

Once your ABN is registered, your details become part of the Australian Business Register (ABR), which is maintained by the ATO.

Benefits of Having an ABN

Registering for an ABN makes running a business easier. With an ABN, you can:

Avoid having 47% of your income withheld as tax by other businesses
Claim fuel tax credits and other entitlements
Register a .com.au or .net.au domain name
Register for Goods and Services Tax (GST)
Set up the Pay As You Go (PAYG) withholding system
Provide employee benefits such as fringe benefits

Types of ABNs and Business Structures

Choosing the right business structure is important. Here are the main types of ABNs:

Sole Trader

A sole trader is an individual operating a business on their own. You are responsible for all business decisions and personally liable for any debts.

Entity name: Your ABN will reflect the full name registered with your TFN (e.g. Dolores Umbridge).

Partnership

A partnership involves two or more people running a business together. All partners share responsibility for debts and obligations.

Entity name: Often includes all partners' names or initials (e.g. F & G Weasley, H.J. Granger & R.B. Weasley).

Company

A company is a separate legal entity that can incur debt, sue, and be sued. Owners (shareholders) usually have limited liability.

Entity name: Includes the company name and legal suffix (e.g. Business Switch Pty Ltd).

Trust

A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries. Trusts are commonly used for family or investment purposes.

Entity name: Reflects the name of the trust (e.g. The Black Family Trust).

Am I eligible for an ABN

You’re eligible to apply for an ABN if you’re:

Starting or running a business (known as an “enterprise”)
Working as a contractor, subcontractor, or freelancer

How Do I Know if I'm Running a Business?

To qualify for an ABN, your activity must be more than just a hobby. You may be considered to be running a business if:

You're planning to make a profit
You have a business plan
You're selling products or services commercially
You keep financial or operational records
You’ve started promoting or advertising your services
You’ve purchased equipment or rented a space
You’ve sought professional advice or registered a business name

Even if you haven't started earning yet, you can still be eligible if you're preparing to launch.

Can I Have More Than One ABN?

As a sole trader, you can only have one ABN in your lifetime, but you can use it for multiple businesses.

You only need a second ABN if you’re starting a business under a different structure, such as moving from a sole trader to a partnership or company.

Important for partnerships: If partners change—someone joins or leaves—a new ABN is required.

What If My Employer Asks Me to Get an ABN?

If you're doing work that would usually classify you as an employee (e.g., set hours, direction from a boss, provided equipment), you should not be asked to get an ABN. This is known as sham contracting and is illegal.

🧾 Contractor vs. Employee – Key Differences

Factor	Employee	Contractor
Control	Works under employer direction	Works independently
Hours	Set by employer	Sets own hours
Risk	No financial risk	Bears financial risk
Tools	Provided by employer	Uses own tools
Tax	Employer deducts tax	Pays own tax and GST
Super	Employer pays super	Responsible for own super
Payment	Regular salary or wages	Issues invoice or paid per project
Leave	Entitled to paid leave	No paid leave

ABN Registration Fee

We offer a simple, fast ABN registration service for a one-time fee of $99.

What’s included:

One-page application
Real-time updates
Friendly support via phone, email, or live chat
Troubleshooting if your ABN is delayed or reviewed
Help with GST, business name, and trademark registration

How Long Does It Take?

Most customers receive their ABN within 15 minutes of applying. If there’s a review by the ATO, it can take a few days to a couple of weeks, depending on the issue.

Using Your ABN

Once you receive your ABN, you can:

Add it to invoices, business cards, websites, and email signatures
Register for a business name or domain
Apply for GST
Start invoicing clients

Your ABN must be displayed on invoices labeled as "Tax Invoice".

ABN Confirmation

There’s no formal certificate from the ATO, but you’ll receive a letter by post within 2 weeks. Your ABN will also appear on abr.gov.au within 1–2 days.

Updating Your ABN

If you need to update your name (e.g. after marriage), you must first update your Tax File Number (TFN) with the ATO. Once that’s done, your ABN record will update automatically.

Call the ATO on 13 28 61 to update your TFN.

Can I Have More Than One Type of ABN?

Yes! You can hold different ABNs for different structures. For example, you may have:

A sole trader ABN for freelancing
A company ABN for a separate incorporated business

They’re treated as separate legal entities.

What If My ABN Application is Refused?

If your ABN is refused, the ATO will send you a letter within 14 days explaining why. This usually happens when:

The details you provided don’t match ATO records
The ATO doesn’t believe you’re starting or running a business
You already have an ABN
There are identity concerns

If this happens, you can lodge an objection by following the steps in the ATO’s letter or by calling them on 13 28 66.

Why is My ABN On Hold?

Your ABN might be under manual review if:

The ATO needs to verify your identity
They believe your application lacks evidence of business activity
You have unresolved tax debts or bankruptcy history

Most reviews are resolved within 1–2 weeks, although the ATO’s official timeframe is up to 28 days.

You can still begin trading while your ABN is on hold. Once activated, your ABN will be backdated to your requested start date.

Does My ABN Expire?

No, ABNs don’t expire. However, they can be cancelled by the ATO if:

You haven’t used it in a while
You haven’t lodged tax returns

If your ABN has been cancelled, it can usually be reactivated rather than re-registered.

📞 Need help reactivating? Call us on 1300 320 283 or visit https://abnregistration.com.au

Can I use my cancelled ABN?

Yes – but only once it’s reactivated. You can’t issue invoices until your ABN is active again, but you can backdate invoices once it’s reactivated.

I want to register multiple businesses. Do I need multiple ABNs?

No. You can run several businesses under one ABN (especially as a sole trader). Just select the category you expect to earn the most revenue from.

Can I run a labouring business?

Yes. If you're setting up your own labouring business (e.g. Smith's Labouring Services), you're eligible to register for an ABN and even a business name.

If you’re being paid wages to perform labour, you're likely considered an employee and shouldn’t use an ABN.

Can I employ people as a sole trader?

Yes! As a sole trader, you can employ staff. Just make sure you meet legal obligations such as:

Superannuation contributions
Fair pay
Leave entitlements depending on employment type

Do I need to register for GST?

Yes, if your business earns $75,000 or more per year, you must register for GST. You can also register voluntarily if you want to claim GST credits on purchases.

How do I lodge tax returns with an ABN?

Sole traders lodge through their personal tax return.
Companies, partnerships, and trusts must lodge separate business tax returns.

For tax help, you may visit https://honcho.com.au/tax for more details.

What are the tax rates for sole traders?

For full info, contact the ATO directly on 13 28 66.

Can I be taxed if I don’t quote my ABN?

Yes. If you don’t provide your ABN on an invoice, businesses may legally withhold 47% of your payment.

My TFN is archived – what do I do?

If you’ve been outside Australia for a while, your TFN may be archived. To unarchive it:

Call the ATO on 13 28 61
It may take up to 28 days to reactivate

ABN Backdating

Yes, your ABN can be backdated to the date you started working—whether a few days, weeks, or even several months ago. You may need to provide proof if it’s over 6 months in the past.

ABNs cannot be reactivated for future dates more than 6 months ahead.

What We Don't Assist With

We only assist with standard business ABNs, such as:

Sole traders
Partnerships
Companies
Family discretionary trusts

Unfortunately, we do not assist with:

Non-Profit ABNs

These are managed by the ATO directly. Contact them on 13 28 66 for assistance.

Superfund ABNs

If you need a superannuation fund ABN, you’ll also need to contact the ATO directly.

Other Services

Business Names

You’ll need to register a business name if you operate under a name that isn’t your own.

Example:

✅ “Jim Taylor” (no need to register)
❌ “Taylor Plumbing” (must register)

Domain Names

To secure your business name online, register a domain name.

We recommend: https://www.honcho.com.au/domain/

📞 Need Help?

We’re here for you 7 days a week, from 9 AM to 8 PM AEST.

📞 Phone: 1300 320 283
📧 Email: contact@abnregistration.com.au
🌐 Website: abnregistration.com.au
🏢 Address: Suite 703, Level 7, The Trust Building, 155 King St, Sydney NSW 2000, Australia

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