To trade in Australia you will typically deal with three different identifiers: an Australian Business Number (ABN) if you are entitled to one, an Australian Company Number (ACN) if you set up a company, and GST registration once your turnover reaches the threshold or you choose to register. They come from different agencies and do different jobs. This article is general information, not legal, tax or accounting advice, and the official pages linked below are the place to confirm current rules.
The three registrations at a glance
| Identifier | What it is | Who issues it | Needed when |
|---|---|---|---|
| ABN | A business identifier used when dealing with other businesses and government | Australian Business Register | You are entitled and carrying on an enterprise |
| ACN | A number given to a registered company | ASIC | You choose a company as your structure |
| GST registration | Registration to charge and claim goods and services tax | ATO | Your GST turnover reaches the threshold, or you opt in |
Note that a business name is separate again. ASIC’s guidance says that if you trade under a different name you register that business name separately, because the companies and business names registers are separate.
ABN: who is entitled
The Australian Business Register states that not everyone is entitled to an ABN. You are entitled if you are carrying on or starting an enterprise in Australia, making supplies connected with Australia’s indirect tax zone, or you are a Corporations Act company (see ABN entitlement).
A few points from that page are worth knowing early:
- There is no single test for carrying on a business. Features include a significant commercial activity of reasonable size and scale, an intention to make a profit, repetition, a systematic and business-like approach with records kept, and relevant knowledge or skill.
- If the business has not started yet, you are expected to have taken some commencement steps, such as setting up a website or social media account for the business, obtaining licences or insurance, or issuing quotes, and to be able to provide evidence if asked.
- You are not entitled to an ABN for work you do as an employee, even if you or your employer calls it contracting.
- Applying for an ABN, registering for GST and claiming refunds when you are not entitled can lead to prosecution, and entitlement can be reviewed at any time.
Overseas businesses may be entitled where they carry on an enterprise in Australia that involves supplies connected with the indirect tax zone.
ACN: only if you form a company
If you choose a company as your structure, ASIC explains that you register it on the Australian companies register through the Business Registration Service and receive an ACN. Before registering, ASIC says you will need:
- a company name that meets its rules, or a name reservation for a limited period
- a registered office address and a principal place of business address
- rules for the company (the replaceable rules in the Corporations Act, your own constitution, or both)
- share structure and member details
- officeholder details, with directors needing a director ID before registration
After registration you must display the company name where you do business with the public, keep company records and the share register, and keep officeholder details current. Fees apply and depend on company type, so check ASIC’s current fee page rather than relying on any article. See ASIC’s guidance on registering a company.
Choosing between sole trader, partnership, company or trust has legal, tax and liability consequences. This article does not compare them. An accountant or lawyer is the right person to advise on that choice.
GST: the threshold and the 21 day rule
Business.gov.au explains that you must register for GST if your GST turnover is 75,000 Australian dollars or more, with a higher threshold of 150,000 Australian dollars for non-profit organisations. Overseas businesses selling to Australian consumers must also register at 75,000 Australian dollars. Other cases such as taxi or limousine travel require registration regardless of turnover.
Key timing and practical points from the same page:
- You must register within 21 days of becoming aware that your GST turnover will go over the threshold.
- New businesses should register if they expect to reach the threshold in their first year.
- Below the threshold, registration is optional. If you do register, you must include GST in most prices, claim GST credits on business purchases, and lodge activity statements.
See Register for goods and services tax (GST).
A sensible order of operations
- Decide your structure with professional advice.
- If a company, register it with ASIC and obtain the ACN.
- Apply for an ABN, answering the entitlement questions honestly.
- Work out your GST turnover, and register if you meet the threshold or if you choose to.
- Register your business name if you trade under a name other than your own or the company’s.
- Keep records from day one, because entitlement and tax questions can come back to them.
If you are an overseas business
Registrations are only part of market entry. Contracts, intellectual property, consumer law and distribution also matter. See international legal basics: contracts and IP and, for the other direction of travel, Australian brands and international audiences. Government export support is covered in Austrade and export support.
Where Radiance Impact fits
Radiance Impact does not provide tax, legal or accounting advice. Its Global division supports overseas businesses with Australian market entry from the creative and digital side: localisation, content and websites. See Market entry support or contact us.
Sources
- ABN entitlement, Australian Business Register
- Registering a company, ASIC
- Register for goods and services tax (GST), business.gov.au
