You're entitled to an Australian Business Number (ABN) if you're carrying on or starting an enterprise in Australia, making supplies connected with Australia's indirect tax zone, or you're a Corporations Act company — but not if you're doing the work as an employee, even when the engagement is labelled contracting (Australian Business Register, ABN entitlement, last modified 29 Feb 2024). Registering through the Australian Business Register is free (business.gov.au; the page shows no update date). An ABN is not GST registration: GST is a separate registration, triggered for a business at a GST turnover of $75,000 or more, or $150,000 or more a year for a non-profit organisation (ATO, Registering for GST, last updated 14 September 2026).
The gap between those two things — holding an ABN you weren't entitled to, and then using it — is where the risk sits. The ABR warns you may face prosecution or criminal charges if you apply for an ABN, register for GST and claim GST refunds when you're not entitled.
Who is entitled to an ABN?
| Your situation | Entitled to an ABN? |
|---|---|
| Carrying on or starting an enterprise in Australia | Yes |
| Making supplies connected with Australia's indirect tax zone | Yes |
| A Corporations Act company | Yes |
| Doing the work as an employee (including as an apprentice, trades assistant or labourer), even if called a contractor | No |
Source: Australian Business Register, ABN entitlement, last modified 29 Feb 2024.
Note what the list does and doesn't say. Entitlement turns on what you're actually doing — running or starting an enterprise, making supplies connected with the indirect tax zone, or being a company — not on how the arrangement is described.
Why can't an employee apply, even if they're called a contractor?
Because the ABR's test is the capacity in which you do the work. Work you carry out as an employee doesn't become enterprise work because an invoice replaces a payslip, and the ABR says explicitly that you're not entitled to an ABN for work carried out as an employee. Apprentices, trades assistants and labourers are within that group.
Can an employer make an ABN a condition of hiring you?
No. The ABR states plainly that an employer shouldn't ask you to get an ABN as a condition of employment. If a role is offered on the basis that you supply an ABN first, that request conflicts with the entitlement rules above — and complying with it doesn't make you entitled.
What happens if you apply when you're not entitled?
Two consequences follow from the ABR's guidance:
- Prosecution risk. You may face prosecution or criminal charges if you apply for an ABN, register for GST and claim GST refunds when you're not entitled.
- Review at any time. The ABR can check your entitlement to an ABN at any time, so an ABN issued earlier doesn't settle the question permanently.
Is an ABN the same as registering for GST?
No. They're separate registrations with separate triggers, and the ATO's rule is that you need an ABN before you register for GST.
| Trigger | What the ATO requires |
|---|---|
| Business or enterprise GST turnover (gross income from all businesses minus GST) | Must register at $75,000 or more (the GST threshold) |
| New enterprise expected to reach the threshold in its first year | Must register |
| Non-profit organisation | Must register at $150,000 GST turnover per year or more |
| Taxi or limousine travel for passengers, including ride-sourcing | Must register regardless of GST turnover — applies to owner-drivers and to leased or rented taxis |
Source: Australian Taxation Office, Registering for GST, last updated 14 September 2026.
Once you're required to register, you have 21 days to do it. Turnover is worked out on the current month plus the previous 11 months, or, for projected turnover, the current month plus the next 11 months.
How much does an ABN cost, and where do you apply?
It's free to register for an ABN through the Australian Government's Australian Business Register (ABR) (business.gov.au; no update date shown on the page). If you're also registering for GST, sort the ABN first — the ATO requires one before the GST registration goes in.
FAQ
Do I need an ABN as a sole trader?
A sole trader who is carrying on or starting an enterprise in Australia is entitled to one, on the same test as anyone else. business.gov.au describes the sole trader structure as the simplest, giving full control, and notes a sole trader is legally responsible for all aspects of the business.
Can my employer require an ABN before hiring me?
The ABR says an employer shouldn't ask you to get an ABN as a condition of employment. If you'd be doing the work as an employee, you're not entitled to an ABN for it.
Does getting an ABN register me for GST?
No. GST registration is separate and turns on turnover — $75,000 or more for a business or enterprise, $150,000 or more a year for a non-profit organisation, and any turnover at all for taxi or limousine travel including ride-sourcing (ATO, Registering for GST, last updated 14 September 2026).
How much does an ABN cost?
Nothing. It's free to register for an ABN through the ABR (business.gov.au; no update date shown).
Can my ABN entitlement be checked later?
Yes. The ABR can check your ABN entitlement at any time, and applying while not entitled, then registering for GST and claiming refunds, can lead to prosecution or criminal charges (Australian Business Register, ABN entitlement, last modified 29 Feb 2024).
Sources
All figures above are quoted from these official pages, checked 2026-10-01. Where a page publishes no update date, no date is given with the figure.