An ABN isn't just a number — it signals to the ATO that you're running a business. Here's when you need one as a reseller.
An Australian Business Number (ABN) is a unique 11-digit identifier issued by the Australian Business Register (ABR). It identifies your business to the government, to other businesses, and to the community. For resellers, having an ABN means you're formally recognised as running an enterprise — which gives you access to business tax deductions and simplifies your dealings with the ATO.
You're entitled to an ABN if you're carrying on an enterprise. The ATO assesses this by looking at whether you have a genuine intention to carry on a business, whether you operate in a businesslike manner, and whether there's a reasonable expectation of profit. For most regular resellers — people who buy items to sell at a markup, maintain active listings, and reinvest profits — the enterprise test is clearly met.
Hobby sellers who only sell personal items they no longer want generally don't meet the enterprise test and shouldn't apply for an ABN.
If you receive business payments without quoting an ABN, the payer may be required to withhold 47% of the payment (the top marginal rate plus Medicare levy). This applies primarily to business-to-business transactions, not platform sales, but it can affect wholesale purchases or contract work. More practically, not having an ABN when you should means you're not meeting your ATO obligations, which can lead to penalties.
Applying for an ABN is free and takes about 10-15 minutes online through the ABR website (abr.gov.au). You'll need your tax file number and personal details. For sole traders, your ABN is linked to your individual TFN. You'll receive your ABN immediately in most cases.
When applying, you'll be asked to select a business structure (sole trader is most common for resellers) and an industry code. Choose the code that best matches your primary activity — for most resellers, this is something like "retail trade" or "online retail."
Having an ABN does not automatically register you for GST. GST registration is a separate decision. You must register for GST if your turnover exceeds $75,000, but having an ABN doesn't trigger that requirement on its own. Many resellers have an ABN without being GST registered, especially when starting out. For more on the full picture of reseller tax in Australia, see our comprehensive guide. Also see our bookkeeping guide for tips on setting up your records once you have your ABN.
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