What is an Australian Business Number (ABN), and Do Students Need One?

Your side hustle is fun, until the ATO wants a chat 😐

Thinking about freelancing, tutoring, selling your art or starting a side hustle?

Before you start rolling in those dollar bills, there are some financial steps you should take to set yourself up right.

One of those steps is registering for an Australian Business Number (ABN).

Sounds official right? But it’s quite straightforward.

We’re still going to break down what it is, whether you need one, and how to get one.

Spoiler: if you’re earning some money outside of a regular casual, part-time or full-time job, you might want to keep reading.

What is an ABN?

An ABN is a unique number that identifies a business. It’s an 11-digit number can be used for the government, other businesses and the public.

But it is not meant to replace your tax file number! They are different things.

Do I need an ABN?

If you are a student who is studying in Australia, you most likely won’t need one.

However, if you’re a student and you run a business you might need one.

The term ‘business’ here is a loose term and encompasses quite a lot of things. You may not have a business in the traditional sense but there are a bunch of reasons you might still need an ABN.

If you’re paid to take event photos for someone once, you might not want to, or need to, apply for an ABN. But if this is something you’re doing repeatedly you might want to consider applying for an ABN.

Some examples of work students might do that would warrant applying for an ABN include:

• Doing freelance work for a company/individual: things like graphic design, writing, editing, photography or social media for clients.
• You’re offering online or in-person tutoring.
• You sell products: this could be jewellery, clothes, art, 3D printed goods, etc, either online or in-person at markets.
• Paid content creation.
• Event work: this could be something like DJing, photography or doing makeup.
• Tech work: such as building websites, apps, offering IT support, etc.

Not everyone is entitled to an ABN.

How do I get an ABN?

You can apply for an ABN through the Australian Business Register (ABR) which is run by the ATO.

Before getting ready to apply make sure you have details about your business structure, proof of identity and details of your business activities and associates.

Applying for an ABN does not cost anything. If at any point you’re asked to pay to register for an ABN something has gone wrong. Maybe check the URL of the website you’re on to ensure you are applying for an ABN on a gov.au site.

It can take up to 20 business days for your application to be approved or refused. The ATO will contact you if they need any further details.

Can I apply for an ABN if I'm an international student?

Short answer, yes. Even if you are a non-resident, you are entitled to an ABN if you are carrying on an enterprise or business in Australia. Or if you're making sales connected with Australia: this goes even if your enterprise isn't located in Australia. 

If you are even unsure, you should definitely check your VISA and make sure you are not restricted in starting a business and therefore entitled to an ABN. 

You can find more details on the Australian government’s business.gov.au website.

If you’re a student applying for an ABN, enjoy the biz/freelance/side-hustle!

This article does not constitute personal financial advice. Before acting on any information in this article, you should consider your money goals and financial situation to ensure it’s appropriate to you.