Australian Business Numbers (ABNs) are important before starting an online business or engaging in trading, freelancing, or other commercial activities. Whether you are an individual or part of a team, an ABN is necessary to access government funding and comply with tax obligations. But how long does it take to get an ABN? The process is typically quick, with most applications approved within 15 minutes if submitted online.

What is an ABN?

An Australian Business Number (ABN) is an 11-digit identifier provided by the Australian Business Register (ABR) to facilitate business operations within Australia. It is an important component for managing business activities within the country and plays a key role in both taxation and identifier systems. 

Why do you need an ABN?

Having an ABN is crucial for everyone running a business in Australia. It enables you to:

1. Business visibility: An ABN acts as a unique identifier, enhancing your brand’s visibility.

2. GST registration: If your business earns more than $75,000 per year, you are required to register for GST. To accomplish this, obtaining an ABN is essential.

3. Invoice issuance: An ABN is a key to creating official tax invoices.

4. Unlock tax benefits: Access various tax credits and benefits, and interact more effectively with the Australian Taxation Office (ATO).

5. PAYG tax: If you do not have an ABN, 45% of your payment may be withheld for tax purposes. 

6. Banking: Many businesses require ABN to open a business bank account.

7. Legal and Financial Transactions: Many businesses require an ABN to enter into contracts. Also for business insurance, an ABN is required.

Step-by-step guidance on applying for an ABN

Step 1: Check your eligibility criteria

Before applying see if you are eligible for getting an ABN. There are some criteria for getting an ABN:

  • You must have a business operating in Australia.
  • Be a company incorporated in Australia.
  • Be a freelance, sole trader, or partner.

Step 2: Gather all required information

Prepare the required information, such as:

Personal Information

  • Name: Your legal name as it will issued on your government documents.
  • Date of birth: It is for verification.
  • Tax file number: If you have one, it is recommended to provide it.
  • Contact information: For getting any updates email and phone number are essential.

Business Information

  • Business name
  • Business address
  • Business structure: Sole trader, partnership, trader, or trust.
  • Tax information: GST (Goods and Services Tax ) registration if applicable.

Step 3: Select your Application Method

  • Online application is the best and quickest option through filling it in minutes.
  • Seek assistance from a certified tax professional.
  • Submitting a paper application.

Step 4: Fill out the application (this is the easiest way to get an ABN)

1. Go to the Australian Business Register (ABR) website

2. Click on “Apply for an ABN”

3. Log in to your account

4. Fill in your all required details

5. Verify your information

6. Submit the application

Applying for ABN is typically a quick process. If your application falls on every required information and your identity can be instantly verified you will get your 11-digit Australian Business Number immediately after submission. As soon as you apply, you will be notified of your ABN.

Delays in getting an ABN

The reasons for the delay in getting an ABN are:

1. Incorrect information

Providing incorrect personal information, such as mismatched names, an incorrect date of birth, or an inaccurate tax file number.

2. Incomplete business information

Missing details about businesses also cause delays of about 20 to 25 business days.

To minimise delays ensure to follow these tips

  • Prepare your documents in advance.
  • Use the ATO’s online application and create a MyGov account to start your application. 
  • Double-check your personal and business information to avoid mistakes.
  • Check your email regularly.
  • Register your business name before applying for an ABN.

Conclusion

In conclusion, the process for applying for an ABN is really quick. Most applications are approved within 15 minutes if completed online. However, the exact time may vary depending on the complexity of the application or the need for additional verification. For instance, if further verification is required or the business structure is complex, the process may take longer. Eventually, how long does it take to get an ABN? depends on these factors, but for most applicants, the process is straightforward and completed in one or two days, making sure of minimal delays in starting a business.