(Editor’s Note: The following article is general advice only. We highly recommend seeking independent legal advice depending on your needs or situation.)
If you’re a tradie looking to grow your business, having an Australian Business Number (ABN) is essential. An ABN not only makes you more credible in the eyes of potential clients but also ensures you’re legally recognised.
It's a small but important step that could make a significant difference in winning jobs and running a successful trade business.
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An ABN serves as a unique 11-digit identifier that allows your business to operate more smoothly, both in dealings with clients and the government. It’s a versatile tool that brings several benefits, such as:
Without an ABN, you may find it challenging to compete with other tradies, especially when clients prefer to hire businesses with official status.
On our site, tradies with ABNs are prioritised, giving you an edge in securing more jobs.
While an ABN offers plenty of benefits for tradies, not everyone qualifies for one. To be eligible, you need to be starting or running a business (referred to as an enterprise) in Australia.
This includes supplying services like plumbing, electrical work, or carpentry. If you’re registered under the Corporations Act or involved in activities connected to Australia's indirect tax zone, you also qualify.
It’s important to remember that applying for an ABN under false pretences, such as registering for GST or claiming refunds when you’re not entitled, can result in serious consequences, including an ABN entitlement review. When you apply, you’ll be asked to demonstrate that you’re running an enterprise.
An enterprise is typically defined as a business activity. As a tradie, this means providing your trade services—whether it's carpentry, electrical work, or tiling—on a commercial scale. Some indicators that you're operating a business include:
Even if you’re just starting out, you may still qualify for an ABN if you’ve begun taking steps to set up your trade business.
This might include purchasing equipment, registering for necessary licences, or setting up a business profile online. Be ready to provide evidence if asked by authorities.
You can’t apply for an ABN for work that’s done as an employee. This includes roles like apprentices, trade assistants, or labourers. It’s illegal for an employer to require you to apply for an ABN just to do employee work.
Before you begin the ABN application process, it’s essential to choose the right business structure for your trade business.
You’ll need to decide if you’re operating as a sole trader, a partnership, a company, or another structure that suits your needs. Most tradies tend to operate as sole traders, but it’s important to pick the structure that works best for you.
To complete your ABN application, you’ll need:
Most tradies won’t need details like a Professional Adviser Licence Number or Australian Company Number (ACN) unless they operate as a larger entity, so you can generally skip those parts if you're applying as a sole trader.
Getting an ABN is a straightforward process, and best of all, it’s free! Here’s a quick guide on how to apply:
There are a lot of scams out there claiming you need to pay money to get an ABN. The truth is, getting an ABN is completely free.
Always go directly to the official Australian Business Register website to avoid any dodgy services that charge you for something that should cost nothing.
Having an ABN shows that you are a legitimate, registered business. When homeowners or companies search for tradies, they are more likely to trust someone who can provide an ABN because it suggests professionalism and accountability.
Here’s how an ABN can boost your trade business:
At ServiceSeeking, we know clients prefer to work with tradies who are registered and have a professional reputation. That’s why businesses with ABNs are prioritised on our platform. When you have an ABN, your profile will be boosted, making it easier for potential clients to find and hire you.
Being at the top of search results is critical when clients are browsing for tradies. Whether they’re looking for an electrician, plumber, or carpenter, they want someone who is reliable and legally operating—and having an ABN proves just that.
An ABN boosts your credibility, opens doors to new opportunities, and helps you get paid faster. Plus, platforms like ours prefer businesses with ABNs, making it even easier to land your next big job.
Join our platform, ServiceSeeking.com.au, today and showcase your ABN-registered business to a network of potential clients searching for reliable tradies!