Australian Business Number (ABN) FAQs

Learn what an ABN is, whether you're eligible, how to register one through Honcho, and how to manage it once you have it.

Summary

• An ABN is required to avoid 47% tax withholding on invoices, register for GST/PAYG, and run a legitimate business or contracting arrangement. 
• You're eligible if you're starting or running an enterprise, or working as a contractor/freelancer — hobby activity and "sham contracting" don't qualify. 
• Honcho registers ABNs for a one-time $99 fee, with most applications approved within 15 minutes. 
• Sole traders get one ABN for life; other structures (partnership, company, trust) may need a separate ABN if your circumstances change.

Prerequisites

Before you apply, make sure you have:

• A genuine enterprise or contracting arrangement — you're starting/running a business, or working as a contractor, subcontractor, or freelancer (not just a hobby, and not an arrangement your employer is using to avoid employee entitlements — see Eligibility Requirements).
• A confirmed business structure — sole trader, partnership, company, or trust — since this determines your legal entity name and whether you're eligible for a second ABN.
• A registered Tax File Number (TFN) — required to apply, and required again if you ever need to update your ABN details.
• No existing ABN under the same structure — as a sole trader you can only hold one ABN in your lifetime.
• The $99 registration fee, if applying through Honcho's service.

Step-by-Step Instructions: Register for an ABN with Honcho

1. Confirm you meet the requirements in Prerequisites above.
2. Decide your business structure (sole trader, partnership, company, or trust) — see Business Structures & Entity Types if you're unsure.
3. Go to abnregistration.com.au and complete the one-page application.
4. Submit your details. Honcho verifies them in real time before lodging with the ATO.
5. Receive your ABN — most applications are approved within 15 minutes. If the ATO flags your application for review, this can take a few days up to 28 days.
6. Confirm your registration: check abr.business.gov.au (updates within 1–2 days) and watch for a confirmation letter by post (arrives within 2 weeks — the ATO doesn't issue a formal certificate).

If you need help at any step, contact Honcho support via phone, email, or live chat, or call 1300 320 283.

Business Structures & Entity Types

Your business structure determines your ABN's entity name and legal obligations.

Sole Trader

An individual operating a business on their own, personally liable for all business debts and decisions. Your ABN reflects the full name registered with your TFN (e.g. Dolores Umbridge). Register as a sole trader.

Partnership

Two or more people running a business together, sharing responsibility for debts and obligations. The entity name often includes all partners' names or initials (e.g. F & G Weasley, H.J. Granger & R.B. Weasley). Register a partnership.

Note: If your partners change — someone joins or leaves — you'll need a new ABN.

Company

A separate legal entity that can incur debt, sue, and be sued, with shareholders usually holding limited liability. The entity name includes the company name and legal suffix (e.g. Business Switch Pty Ltd). Register a company.

Trust

A legal arrangement where a trustee holds assets on behalf of beneficiaries, commonly used for family or investment purposes. The entity name reflects the name of the trust (e.g. The Black Family Trust).

Eligibility Requirements

Am I eligible for an ABN?

You're eligible if you're:

• Starting or running a business (known as an "enterprise"), or
• Working as a contractor, subcontractor, or freelancer.

How do I know if I'm running a business (and not just a hobby)?

You're likely running a business if you:

• Are planning to make a profit
• Have a business plan
• Are selling products or services commercially
• Keep financial or operational records
• Have started promoting or advertising your services
• Have purchased equipment or rented a space
• Have sought professional advice or registered a business name

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

Contractor vs. employee — key differences

If your employer is asking you to get an ABN for work that looks like employment, this may be sham contracting, which is illegal.

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 for an ABN and a business name. If you're paid wages to perform labour under someone else's direction, you're likely an employee and shouldn't use an ABN.

Can I employ people as a sole trader?

Yes. Make sure you meet your legal obligations, including:

• Superannuation contributions
• Fair pay
• Leave entitlements (depending on employment type)

Managing Your ABN

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 (e.g. moving from sole trader to partnership or company).

Can I have more than one type of ABN?

Yes — you can hold different ABNs for different structures at the same time (e.g. a sole trader ABN for freelancing and a separate company ABN for an incorporated business). They're treated as separate legal entities.

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.

Using your ABN

Once you receive your ABN, you can:

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

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

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 by calling 13 28 61. Your ABN record updates automatically once your TFN is updated.

Does my ABN expire?

No — ABNs don't expire, but the ATO can cancel one if you haven't used it in a while or haven't lodged tax returns.

Can I use a cancelled ABN?

Only once it's reactivated — you can't issue invoices until then, though you can backdate invoices after reactivation. Cancelled ABNs can usually be reactivated rather than re-registered. Call 1300 320 283 or visit abnregistration.com.au for help.

ABN backdating

Your ABN can be backdated to the date you started working, whether a few days, weeks, or several months ago. You'll need to provide proof if it's more than 6 months in the past. ABNs cannot be backdated or future dated more than 6 months ahead. ABNs cannot be reactivated on a future date. 

Registering a business name or domain

You'll need to register a business name if you operate under a name that isn't your own (e.g. "Taylor Plumbing" needs registration; "Jim Taylor" doesn't). Register at BusinessName.com.au or call 1300 320 286. To secure your name online, we recommend registering a domain at honcho.com.au/domain.

GST & Tax Obligations

Do I need to register for GST?

Yes, if your business earns $75,000 or more per year, GST registration is mandatory. You can also register voluntarily 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 rate details or general tax help, contact the ATO on 13 28 66 or visit honcho.com.au/tax.

PAYG Withholding Cancellation

When should I cancel PAYG withholding?

Cancel your PAYG withholding registration if:

• You no longer have employees
• You're no longer withholding tax from payments
• Your business has stopped operating
• You registered for PAYG by mistake

Important: Cancelling PAYG withholding does not cancel your ABN — it only removes the PAYG registration.

How to cancel PAYG withholding

Option 1: Online, via Online services for business

1. Log in to Online services for business via myID.
2. Select your ABN.
3. Go to Registrations.
4. Select PAYG withholding.
5. Choose Cancel registration.
6. Enter the date you stopped withholding.

Option 2: Through your registered tax agent or BAS agent, like Honcho.

Option 3: By contacting the ATO directly on 13 28 66 (Monday–Friday, 8am–6pm).

Before you cancel

Make sure:

• All required activity statements are lodged
• All PAYG withholding amounts have been paid
• You've finalised any employee payroll obligations

If you cancel while you still have reporting obligations, you may still need to lodge outstanding statements.

What We Don't Assist With

Honcho assists with standard business ABNs only: sole traders, partnerships, companies, and family discretionary trusts.

We do not assist with:

• Non-profit ABNs — managed directly by the ATO. Call 13 28 66.
• Superfund ABNs — you'll need to contact the ATO directly for these as well.

Troubleshooting

Error: My ABN application was refused.

• Why this happens: Your details don't match ATO records, the ATO doesn't believe you're starting/running a business, you already have an ABN, or there are identity concerns.
• What to do: The ATO will send a letter within 14 days explaining the reason. Follow the objection steps in that letter, or call the ATO on 13 28 66 to lodge an objection.

Error: My ABN is stuck "on hold" or under review.

• Why this happens: The ATO needs to verify your identity, believes your application lacks evidence of business activity, or has flagged unresolved tax debt or bankruptcy history.
• What to do: You can continue trading while it's under review — once approved, your ABN will be backdated to your requested start date. Most reviews resolve within 1–2 weeks (official ATO timeframe: up to 28 days).

Error: My TFN is archived and I can't update my ABN.

• Why this happens: You've been outside Australia for an extended period, which causes the ATO to archive your TFN.
• What to do: Call the ATO on 13 28 61 to unarchive it. This can take up to 28 days.