Updated: April 2026

When starting a new business in Australia, dealing with government registrations can feel overwhelming. Understanding the difference between an ABN, a TFN, and GST is your first step to getting your business off the ground legally and efficiently.

1. Australian Business Number (ABN)

An ABN is a unique 11-digit number that identifies your business to the government and the community. You need an ABN to issue valid tax invoices, claim energy grants, and avoid having other businesses withhold tax from payments to you.

• Do I need one? Yes, if you are carrying on an enterprise in Australia, you should register for an ABN.
• How to register: Registration is free through the Australian Business Register (ABR) website.

2. Tax File Number (TFN)

Your TFN is your personal reference number in the tax and superannuation systems.

• Sole Traders: If you operate as a Sole Trader, you simply use your existing individual TFN for your business dealings. You do not need a new one.
• Companies, Partnerships, and Trusts: If you set up a separate business entity (like a Pty Ltd company), that entity must apply for its own separate business TFN. You can apply for this at the same time you apply for your ABN on the ABR website.

3. Goods and Services Tax (GST)

GST is a broad-based tax of 10% on most goods, services, and other items sold or consumed in Australia.

• The Registration Threshold: You are only required to register for GST when your business reaches a certain gross income (turnover) threshold.
• Should I register early? If your turnover is below the threshold, registering is optional. It might be beneficial if you have large business expenses and want to claim back the GST credits, but remember that once registered, you must charge an extra 10% on your sales and lodge regular Business Activity Statements (BAS).

Let us handle the paperwork!

One small mistake during the registration process can cause major headaches with the ATO down the line. As registered Tax Agents, Loyal Bright Accountants can register your ABN, TFN, and GST simultaneously, ensuring your business is structured correctly from day one. Contact us today to get started.