What If I Don't Have an ABN?
Without an ABN, your business customers may have to withhold a large part of the payment. You can apply for an ABN, or use an ATO declaration for non-business supplies.
In this answer
- Understand the impact of invoicing without an ABN
- Know the main options available to you
- Recognise when a declaration may apply
- Find out where to confirm the rules
4 min
The practical problem
Invoicing a business without quoting an ABN creates an immediate cash-flow issue: under the rules, the payer is generally required to withhold a portion of the payment and remit it to the ATO instead of paying you in full. The withholding rate is set by the ATO and is high enough to be felt.
So while there is no law forcing every individual to hold an ABN, the system is built to nudge anyone operating a business towards getting one. If you regularly invoice other businesses, not having an ABN works against you. The good news is there are clear paths forward depending on whether you are actually running a business.
Option one: apply for an ABN
If you are carrying on a business — even a small or part-time one — the cleanest fix is usually to apply for an ABN. Applications are made through the Australian Business Register, and once you have a number you simply quote it on every invoice and the withholding problem disappears. Having an ABN also makes you look established to customers and is a prerequisite if you later need to register for GST. Eligibility depends on whether you are genuinely in business, so if you are unsure whether you qualify, confirm it with the ATO or your accountant before applying.
Option two: the non-business declaration
If a payment is genuinely not made in the course of carrying on a business — for instance, a hobby or a private, one-off transaction — the ATO provides a 'statement by a supplier' style declaration. This lets you tell the payer that an ABN is not required because the supply is not part of a business, so they can pay you without withholding. It only applies where the supply truly is non-business, and the hobby-versus-business distinction can be subtle. Do not use a declaration to sidestep getting an ABN if you are actually trading — check your position with the ATO or your accountant.
Deciding what fits
If you are in business, an ABN is almost always the right move; if you are not, a declaration may be enough. Either way, see whether you need an ABN to invoice and lay out the rest of your invoice with our free invoice tools.
This is general information only, not tax or legal advice. ABN eligibility and withholding rules depend on your circumstances — confirm them with the ATO or your accountant.
Key takeaways
- Without an ABN, a business payer may withhold a large slice of the payment.
- If you are in business, applying for an ABN is usually the simplest fix.
- A non-business supplier declaration may apply to genuine hobby or private sales.
- The hobby-versus-business line can be subtle and has consequences.
- Confirm your position with the ATO or your accountant.
Frequently asked questions
Can I invoice at all without an ABN?
You can issue a document, but a business payer may be required to withhold part of the payment. Quoting an ABN, or using an appropriate declaration, avoids that. Confirm with the ATO or your accountant.
Is it hard to get an ABN?
Applications are made through the Australian Business Register. Eligibility depends on whether you are carrying on a business, so check your position with the ATO or your accountant.
When can I use a supplier declaration?
Only where the supply is genuinely not part of a business. If you are actually trading, get an ABN instead. Confirm with the ATO or your accountant.
Build a compliant invoice in minutes
Use the free Invoice Generator, then let Merion recover anything that goes unpaid — commission-only.