How to Apply for an ABN as a Sole Trader (2025 Step-by-Step Guide)

If you're starting a new business, freelancing, contracting, or delivering for gig-economy platforms, you may need an Australian Business Number (ABN). An ABN is used to identify your business to clients and agencies and is required for invoicing, registering for GST, and operating as a sole trader.

This guide outlines the different ways you can apply for an ABN and includes a clear, step-by-step example of how the process works when applying through Register My ABN.

Ways to Apply for an ABN in Australia

There are three common options to apply for an ABN as a sole trader.

Option 1: Apply Through the Australian Business Register (ABR)

The ABR is the official government website that issues ABNs.

Pros

• Free
• Direct government process
• Suitable if you're familiar with ATO-style language

Cons

• Some questions can be detailed or technical
• Limited guidance if you're unsure how to answer
• Processing can take longer if information doesn’t match ATO records

This option is generally used by people comfortable navigating government forms.

Option 2: Apply Through an Accountant

Some accountants and registered tax agents can submit ABN applications for clients.

Pros

• Someone else completes the lodgement process
• Useful if you are already engaging them for other services

Cons

• Fees for a sole trader ABN typically range from around $100-$200, depending on the practice
• Usually requires an appointment or email exchanges
• May take longer than applying online
• More commonly used for complex structures rather than straightforward sole trader applications

Option 3: Apply Online With Register My ABN (Step-by-Step Below)

Register My ABN provides a simple online form designed for sole traders, written in simple English. Below is an example of the exact step-by-step process.

Step-by-Step Guide: Applying for an ABN Using Register My ABN

You can register for a sole trader ABN using Register My ABN in 2 minutes with 6 easy steps. Follow the instructions below and get your sole trader ABN simply.

Step 1 - Check Your Eligibility

To be eligible for a sole trader ABN, you must be starting or running a business, which may include:

• Contracting
• Gig-work delivery
• Freelancing
• Providing services
• Selling goods
• Support work
• Other commercial activities
  
  

The ATO assesses eligibility based on whether a person is operating or intending to operate a business.

Step 2 - Enter Your Personal Details

Great! Now that you’re eligible for an ABN, you’ll need to provide your:

• Full name
• Date of birth
• Country of birth
• Mobile
• Email

These details must match ATO records. Accurate information helps the ATO verify your identity when assessing an ABN application.

Step 3 - Provide Application Details

You’ll provide:

• Your TFN
• The reason for applying for an ABN

Common reasons for applying for an abn is new business in Australia, contractor / subcontractor and the receive payment for services.

Step 4 - Enter Business Details

Once you’ve provided your TFN and ABN reason, you’ll need to provide more details about your business including your:

• Main business activity
• Business address
• Postal address

As a sole trader, your business address is typically the same as your home address if you do business mainly at home. Your business address cannot be a P.O. box address. Alternatively if you don’t want to put your home address, you can also get a virtual address to use instead.

Once you have an ABN, your ABN details are available via the Australian Business Register (ABR) public lookup and it will show your suburb and postcode. You can request for a non-disclosure of ABN details from the ABR if publishing the information may be a risk to your personal safety or the safety of anyone associated with the business.

Step 5 (Optional) - Register a Business Name or GST

You’re almost there! As part of your ABN registration with Register My ABN, you also have the option to register a business name and / or GST.

You will need a business name if you are not trading under your own name. For example, if your name is John Smith:

Trading as "John Smith" → No business name required

Trading as "John’s Plumbing" → Business name required

You need to register for GST if you drive for rideshare (like Uber or DiDi), taxi, or limousine services, or if your business earns $75,000 or more in a year. Some sole traders also choose to register voluntarily to claim GST credits.

Step 6 - Review, Checkout and Submit Your Application

That’s it! Once you’ve paid the ABN registration fee of $45, your application will be securely lodged with the ATO. Most sole trader applications receive an instant decision:

• Approved - ABN issued immediately
• Pending - ATO will review within 20 business days
• Declined - eligibility not confirmed
• Correction required - mismatched or unclear details

Common Mistakes That Delay ABN Applications.

1. Identity details not matching ATO records
2. Incorrect or incomplete address information
3. Inconsistent information across sections
4. Start date set too far in the future

FAQs

1. Do I need an ABN as a sole trader?
   Yes - if you invoice clients, work as a contractor, or operate a business.
2. Is applying for an ABN free?
   It’s free through the ABR. Services like Register My ABN charge a small fee for a simple and faster application.
3. How long does it take to get an ABN?
   Many applications receive an instant outcome. Some may take up to 20 business days if the ATO requires further checks.
4. Can I update my ABN once issued?
   Yes - details such as address, business activity or contact information can be updated through the ABR.