Top 5 Benefits of Having an ABN Every Aussie Business Owner Should Know in 2026
Starting your own business in Australia is exciting, but it can also feel a bit confusing when it comes to paperwork and registrations.
One of the first things every business owner needs to understand is the Australian Business Number (ABN).
It’s more than just a number — your ABN helps your business look professional, stay compliant, and save money.
In this simple guide, we’ll break down the top 5 benefits of having an ABN and how it can help you grow your business in 2025.
1. Claim GST Credits and Register for GST Easily
Once you have an ABN, you can register for Goods and Services Tax (GST). This means you can claim back the 10% GST you pay on business purchases — things like office supplies, equipment, or services.
Here’s how it helps you:
- You only need to register for GST if your annual income is over $75,000 (or $150,000 for non-profits).
- But even if your business earns less, you can register voluntarily and start claiming GST credits.
- It improves your cash flow and helps you keep your costs under control.
2. Make Your Business Look Legit and Claim Tax Deductions
Having an ABN shows that you’re running a real business, not just a hobby.
And that means you can claim tax deductions for your business expenses — like internet, rent, fuel, tools, and marketing costs.
Why it matters:
- You’ll pay less tax because you’re deducting eligible business expenses.
- The ATO expects good record-keeping, so keep receipts and invoices ready.
- It helps you stay fully compliant while maximizing your tax savings.
3. Build Trust and Professional Credibility
When you have an ABN, people see you as a trusted and serious business owner.
Clients, suppliers, and even banks will take your business more seriously.
With an ABN, you can:
- Add it to your invoices, website, and business cards.
- Register for a business name with ASIC.
- Apply for business loans and contracts with bigger companies.
4. Open a Business Bank Account and Access Financial Services
An ABN allows you to separate your personal and business finances — which is essential for smooth accounting.
With an ABN, you can:
- Open a business bank account in your trading name.
- Apply for merchant facilities or small business loans.
- Track your income and expenses easily for tax time.
5. Avoid 47% Tax Withholding on Payments
Here’s something many new business owners don’t know —
If you don’t quote your ABN on an invoice, your client must legally withhold 47% of your payment and send it to the ATO!
That’s almost half your earnings gone until you sort things out.
By having an ABN, you:
- Receive full payments without deductions.
- Keep better control over your cash flow.
- Handle your taxes at your own pace with your accountant’s help.
Why Every Business in Australia Needs an ABN?
An ABN is not just a government requirement — it’s the foundation of a successful business.
It helps you build credibility, stay compliant, and manage your taxes efficiently.
Here’s a quick recap of the key ABN benefits:
Ready to Get Your ABN or Need Professional Advice?
At AMA Accountants, we’ve helped hundreds of Australian business owners register their ABN, set up GST, and manage their taxes with ease.
Whether you’re a sole trader, starting a company, or running a small business — we’ll make sure your registrations are done quickly, correctly, and stress-free.
Authored By Amit Chugh
Partner, CPA & Registered Tax Agent
Your Trusted Accountant for Adelaide, Melbourne, Sydney, Brisbane & Across Australia
Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.
Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.
With over 25+ of professional experience, Amit has helped thousands of clients streamline their finances, optimise tax returns, and ensure full compliance with Australian Taxation Office (ATO) requirements. His client base spans Melbourne, Brisbane, Sydney, Tasmania, Perth, Adelaide, Darwin, Canberra, and regional hubs including Prospect, Modbury, Mawson Lakes, Woodville, Mount Gambier, Victor Harbor, Whyalla, Port Lincoln, Murray Bridge, Port Augusta, Gawler, and Port Pirie.
