Can I invoice a client without an ABN?

Yes, in limited situations. For many business-to-business payments, the payer must withhold 47% when the supplier does not quote an ABN and no exception applies. A valid Statement by a supplier may apply where the activity is not an enterprise, such as a private recreational pursuit or hobby.

How long does it take to get an ABN?

Usually around 10–15 minutes online via the Australian Business Register at abr.gov.au. Most applications are approved instantly. In a small percentage of cases the ATO holds the application for manual review, which can take up to 28 days.

Do I need to register for GST when I get an ABN?

No. ABN and GST are separate. You must register for GST if your turnover hits $75,000 in any 12-month period (or from day one if you drive taxi/ride-share). Below that, you can have an ABN without GST registration — and most new sole traders do.

Can You Invoice Without an ABN? (Australia)

Q: Does an ABN cost anything?

No — applying for an ABN is free directly through the Australian Business Register (abr.gov.au). Some third-party agent sites charge fees of $40–$300 for the same application; you don’t need them.

Q: Are there situations where I don’t need an ABN?

Yes. Examples include an eligible hobby or private activity and a payment of $75 or less excluding GST. A supplier can use the ATO Statement by a supplier form when its eligibility rules apply. Employees are paid through PAYG withholding rather than invoicing as contractors.

Quick answer

You can invoice without an ABN in limited situations. For many business-to-business payments, however, the payer must withhold 47% when you do not quote an ABN and no exception applies. On a $1,000 payment that means receiving $530 while $470 is sent to the ATO. Most Australian freelancers, contractors and sole traders therefore get an ABN before issuing their first invoice. An ABN is free and takes about 10 minutes to apply for at abr.gov.au, and is approved instantly in most cases.

Once you have one, quote it on invoices for your business activity. See free invoicing for sole traders, which puts the ABN on the invoice for you.

Note: this is general information, not tax advice. Refer to the ATO’s no-ABN withholding guidance and abr.gov.au for authoritative guidance.

What “No ABN withholding” actually means

For many payments between businesses, the ATO requires the payer to withhold 47% when the supplier does not quote an ABN and no exception applies. The withheld amount is sent to the ATO. The supplier claims it through their tax return, which can leave the money unavailable for months.

This rule exists to stop businesses paying off-the-books contractors who never declare the income. From the client’s perspective, the rule is not optional: if they pay you $1,000 in full without an ABN on your invoice, they can be penalised for failing to withhold.

The practical consequences for a freelancer with no ABN

Cash flow: where withholding applies, you receive 53% of the payment and the other 47% is sent to the ATO.
Client reluctance: most professional clients won’t engage a non-ABN supplier at all. The extra paperwork (calculating withholding, lodging PAYG withholding to the ATO, issuing a payment summary) is rarely worth it for a small job.
Eligibility for tools and platforms: Australian payment processors, marketplaces, and tax-deductible expense claiming systems often require an ABN.

When you genuinely don’t need an ABN

The 47% withholding rule has exceptions. You don’t need an ABN if any of these are true:

The work is a hobby. Casual, occasional sales not run with profit intent (e.g. selling old furniture once a year on Marketplace). The ATO has guidance on hobby vs business that’s worth reading if you’re unsure.
A one-off private transaction under $75 (excl. GST). Small, non-commercial sales below this threshold don’t trigger the rule.
You’re an employee. PAYG employees use a Tax File Number (TFN) and their employer handles withholding through payroll. ABN is for contractors and the self-employed.

In the hobby and small-transaction cases, the supplier completes a “Statement by a supplier” form (NAT 3346, available on the ATO website) confirming the exemption. The client keeps it as evidence and pays you in full.

How to apply for an ABN (free, 10 minutes)

Go to abr.gov.au - the Australian Business Register. This is the only official, free channel.
Pick your entity type. For most freelancers and tradies starting out, that’s “Individual / Sole trader”.
Provide your Tax File Number (TFN), date of birth, and contact details.
Describe your business activity. Use plain language - “Web design”, “Plumbing services”, “Personal training”. The form maps it to an industry code automatically.
Confirm you’re carrying on (or starting) an enterprise with profit intent.
Submit. Most ABNs are approved instantly and the 11-digit number is shown on screen.

A small percentage of applications are held for manual review and can take up to 28 days, usually if your TFN history doesn’t match the application details. Either way, the process is free. Ignore the third-party agent sites that charge $40–$300 to do the same thing - they offer no advantage.

After you get your ABN: what changes on invoices

Add the ABN to every invoice you issue from the day you get it. The ABN typically sits right under your business name in the invoice header. For example:

Acme Web Design
ABN 12 345 678 901
hello@acmeweb.com.au

Free Invoice App pre-fills your ABN once during setup and renders it on every invoice PDF automatically. If you change your business structure later (e.g. sole trader → company), you update it in one place and every new invoice picks it up.

ABN vs GST: not the same thing

A common confusion: getting an ABN doesn’t automatically register you for GST. They’re separate.

ABN: identifies your business. Get one from day one. Free.
GST registration: required when your turnover hits $75,000 in any 12-month period (or from day one if you drive taxis/ride-share). Below that, it’s optional.

Most new sole traders have an ABN but aren’t GST-registered. That’s the right starting point - see how to invoice without GST for the exact wording to use, and what must be on a tax invoice once you do register.

How Free Invoice App handles ABNs

Free Invoice App requires your ABN once during onboarding. From then on, every invoice you issue renders with the ABN in the header automatically. If you’re GST-registered, the invoice picks up the “Tax Invoice” wording too. If you’re not, it just says “Invoice” and skips the GST line. Get started free - once your ABN is in, you can send your first invoice in under 60 seconds.

Frequently asked questions

Can I invoice without an ABN?

Yes, in limited situations. For many business payments, the payer must withhold 47% if you do not quote an ABN and no exception applies. In practice, get an ABN if you are carrying on an enterprise and entitled to one.

How long does an ABN application take?

About 10–15 minutes online at abr.gov.au, with instant approval in most cases.

Does an ABN cost anything?

No - it’s free directly through abr.gov.au. Third-party agents who charge for it are unnecessary.

When don’t I need an ABN?

Examples include an eligible hobby or private activity and a payment of $75 or less excluding GST. A supplier can use the ATO “Statement by a supplier” form when its eligibility rules apply. Employees are paid through PAYG withholding rather than invoicing as contractors.

Do I need GST registration too?

Only once turnover reaches $75,000 in a 12-month period. Below that, an ABN without GST is fine.

Do You Need an ABN to Invoice in Australia?