To get an ABN you need to be carrying on a business or other enterprise. Not everyone is entitled to an ABN. For example, if you want to carry out work as a sole trader with an ABN, typically you need to be:
- Genuinely running your own business
- Paying your own income tax and GST directly to the ATO
- Sourcing your own clients by, for example, advertising your services
- Able to delegate work to others if you choose without approval from an ‘employer’
- Quoting for work, including setting or negotiating your own prices
- Invoicing for work
- Maintaining a business bank account separate from your personal account
- Paying for your own business insurance such as public liability.
Before applying for an ABN, you need to have settled on the right structure for your business (for example, sole trader, partnership, trust or company).
For assistance regarding any of the above, please don't hesitate to contact DD's Taxation and Accounting Centre as we specialise in small business and start ups.