ABN vs ACN Comparison Tool
Answer six quick questions to find out which business identifier may apply to your situation.
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What is an ABN?
An Australian Business Number (ABN) is an 11-digit unique identifier issued to businesses and individuals by the Australian Business Register (ABR). It is one of the most important identifiers for anyone conducting business activities in Australia.
What an ABN is Used For
Your ABN appears on tax invoices you issue to customers and clients, allowing them to claim goods and services tax (GST) credits where applicable. It is also used when dealing with government agencies, registering for GST, claiming tax deductions, and interacting with the Australian Taxation Office (ATO). Most businesses will also display their ABN on their website, business cards, and correspondence.
Who Issues an ABN?
The ABR — which is managed by the ATO — issues and maintains ABNs. Applications are made directly through the ABR's online registration system at abr.gov.au, and in many cases, eligible applicants receive their ABN immediately upon lodging a complete application.
Key Facts About ABNs
An ABN is 11 digits long and is available to a wide range of entity types, including sole traders, freelancers, contractors, partnerships, companies, trusts, and other organisations. It is primarily a business identification and tax administration tool and is distinct from an ACN.
What is an ACN?
An Australian Company Number (ACN) is a 9-digit unique identifier issued exclusively to companies registered under the Corporations Act 2001. It is issued by the Australian Securities and Investments Commission (ASIC).
What an ACN is Used For
An ACN is used to identify a registered company in its dealings with ASIC and in official company documents, including letters, invoices, and legal contracts. Under the Corporations Act, every registered company is required to display its ACN or ABN on all public documents and business communications.
Who Issues an ACN?
ASIC issues ACNs when a company is registered through their online business registry at asic.gov.au. The ACN is permanently linked to the company and remains the same for the life of the company, even if its name or other details change.
Key Facts About ACNs
An ACN is 9 digits long and is only available to incorporated companies — it is not issued to sole traders, freelancers, partnerships, or trusts in their own right. It is a legal company identification tool and a compliance requirement under Australian corporate law.
Key Differences Between ABN and ACN
Understanding the differences between an ABN and an ACN is important when setting up or restructuring your business. The table below provides a clear side-by-side comparison.
| Feature | ABN | ACN |
|---|---|---|
| Issued By | Australian Business Register (ABR) | Australian Securities & Investments Commission (ASIC) |
| Number Length | 11 digits | 9 digits |
| Used By | Most business types — sole traders, freelancers, partnerships, companies, trusts | Registered companies only (Pty Ltd, Ltd, etc.) |
| Primary Purpose | Business identification, tax, invoicing, GST registration | Company identification, ASIC compliance, corporate law |
| Required for Sole Traders | Usually Yes | No |
| Required for Freelancers | Usually Yes | No |
| Required for Partnerships | Yes | No |
| Required for Companies | Usually Yes | Yes |
| Required for Trusts | Usually Yes (via Trustee) | No (unless Trustee is a company) |
| Cost to Obtain | Free | ASIC company registration fees apply |
Who Usually Needs an ABN?
An ABN is required by a broad range of individuals and entities carrying on a genuine business enterprise in Australia. Below are the most common ABN holders.
🟢 ABN Holders
- Sole traders running their own business
- Freelancers providing services to multiple clients
- Independent contractors who invoice for their work
- Online sellers and e-commerce businesses
- Business consultants and advisers
- Partnerships of two or more people
- Family trusts and discretionary trusts carrying on business
- Non-profit organisations and charities
- Registered companies (in addition to their ACN)
🔵 Who Does NOT Usually Need an ABN
- Employees earning a salary or wages
- Individuals earning hobby income without a profit motive
- People carrying out one-off transactions without a business purpose
- Students with no business activities
- Purely private individuals with no business dealings
Who Usually Needs an ACN?
An ACN is exclusively for incorporated companies registered with ASIC under Australian corporate law. Not all businesses require an ACN — only those that have chosen or are required to incorporate as a company.
Private Companies (Proprietary Limited)
The most common type of company in Australia is the proprietary limited company (Pty Ltd). When you register a Pty Ltd company with ASIC, you are automatically issued an ACN. Private companies are the typical structure for small to medium businesses that have incorporated for liability protection or investment purposes.
Public Companies
Larger businesses that raise funds from the public or are listed on the Australian Securities Exchange (ASX) operate as public companies (Ltd). These companies also receive an ACN and are subject to additional ASIC reporting requirements.
Corporate Structures and Subsidiaries
Group corporate structures, holding companies, and subsidiaries each hold their own ACN as separate legal entities registered with ASIC.
Registered Companies (General)
Any entity that has formally incorporated as a company under the Corporations Act 2001 will hold an ACN. This includes companies acting as trustees for trusts, corporate joint ventures, and companies managing superannuation funds.
Can a Business Have Both an ABN and an ACN?
Yes — and in the case of registered companies, holding both is the standard arrangement in Australia.
Companies Typically Hold Both
When a company registers with ASIC, it receives an ACN. The company then typically also registers for an ABN through the ABR. The ABN for a company is mathematically derived from its ACN: it is calculated by adding the prefix "0" to the 9-digit ACN and then applying a weighting formula to produce the 11-digit ABN.
They Serve Different Purposes
The ACN is used for ASIC compliance — it must appear on all company documents including contracts, invoices, and correspondence. The ABN is used for tax, GST, and business dealings with the ATO and other government bodies. One identifier does not replace the other.
ABN Does Not Replace ACN for Companies
Under the Corporations Act, a registered company may use its ABN in place of its ACN on certain documents — provided the ABN includes the ACN as its last nine digits. However, this does not mean the ACN becomes redundant; it remains the primary identifier for ASIC purposes.
Common Business Scenarios
Not sure which identifier applies to your situation? Here are common business scenarios and which registration is typically needed.
Freelancer
A graphic designer working independently for multiple clients, invoicing for their services on a project basis.
ABN OnlyOnline Store
An e-commerce business selling physical or digital products through their own website or a marketplace platform.
ABN OnlyConsultant
A business or IT consultant providing advisory services to corporate clients on a contract basis.
ABN OnlyPartnership
Two or more individuals operating a business together under a partnership agreement, sharing profits and liabilities.
ABN OnlyPty Ltd Company
A registered proprietary limited company providing services or products, with directors and potential shareholders.
ABN + ACNSide Hustle
An individual earning additional income from a hobby that has grown into a genuine business with regular clients and invoicing.
ABN OnlyABN vs ACN Examples
Real-world examples help illustrate which identifier applies in different business circumstances.
Example 1: Freelance Designer
Sarah is a freelance graphic designer who works with five regular clients, issues invoices monthly, and earns approximately $60,000 per year. She operates as a sole trader.
As a sole trader, Sarah needs an ABN to invoice clients and manage her tax obligations. She does not need an ACN as she has not incorporated a company.
Example 2: Online Store Owner
James operates an online store selling handmade goods through his own website and a major marketplace. He earns around $40,000 per year and ships Australia-wide.
James's online business constitutes a genuine business enterprise. He needs an ABN for tax and invoicing purposes but does not need an ACN unless he incorporates as a company.
Example 3: Pty Ltd Company
TechBuild Pty Ltd is a software development company with three directors, multiple employees, and annual revenue of $2 million. It is registered with ASIC.
As a registered company, TechBuild holds an ACN from ASIC and an ABN from the ABR. Both must appear on company documents as required by the Corporations Act.
Example 4: Contractor
Mike is a licensed electrician working as an independent contractor for construction firms. He supplies his own tools, sets his rates, and invoices each client separately.
Mike's contracting work constitutes a business enterprise. He needs an ABN to invoice clients and avoid no-ABN withholding. As he has not incorporated, no ACN is required.
Example 5: Family Business
The Chen family operates a catering business as a family trust, with a corporate trustee (a Pty Ltd company) holding the trust assets. The trust earns $300,000 annually.
The trust itself registers for an ABN in the name of the trustee. The corporate trustee (Pty Ltd) also holds its own ACN issued by ASIC. Both identifiers serve distinct legal purposes.
How to Get an ABN
Registering for an ABN is a free process managed by the Australian Business Register. Here are the general steps.
Confirm Eligibility
Check that you meet common ABN eligibility requirements — including carrying on a genuine business activity with a profit intent. Review criteria at abr.gov.au.
Choose Your Business Structure
Decide whether you will operate as a sole trader, partnership, trust, or company. This determines how you apply and what obligations follow.
Submit Your ABN Registration
Complete the free online ABN application at abr.gov.au. You will need your Tax File Number (TFN), personal details, and a description of your business activities.
Receive Your ABN
Many applications are approved immediately. Some may require additional review by the ABR, in which case you will be contacted with next steps.
How to Get an ACN
An ACN is issued automatically when you register a company with ASIC. Here are the general steps involved in the process.
Register Your Company with ASIC
Begin your company registration application at asic.gov.au or through a registered company agent. ASIC registration fees apply and vary depending on the company type.
Submit Company Information
Provide details including the proposed company name, registered office address, director and shareholder information, and share structure. ASIC will check availability of the company name.
Receive Your ACN
Upon successful registration, ASIC issues your 9-digit Australian Company Number. This is your permanent company identifier for all ASIC dealings and legal documents.
Apply for an ABN if Required
Once you have your ACN, most companies also register for an ABN through the ABR at abr.gov.au for tax, GST, and invoicing purposes. The process is free and can often be completed alongside company registration.
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Official Resources
PublicAccess.au provides independent informational guidance only. For official ABN and ACN registration requirements, always consult the following Australian Government sources:
Australian Business Register
Register for an ABN and verify ABN details at abr.gov.au.
ASIC
Register a company, obtain an ACN, and manage company compliance at asic.gov.au.
Australian Taxation Office
Tax obligations, ABN guidance, and GST registration at ato.gov.au.
We encourage all users to verify their registration requirements through official government resources before taking any action.
Summary: ABN vs ACN — Which Do You Need?
The key difference between an ABN and an ACN comes down to your business structure. An ABN is the standard business identifier required by almost all entities operating in Australia — from sole traders and freelancers to companies and trusts. An ACN, on the other hand, is exclusively for incorporated companies and is issued by ASIC at the time of company registration.
For most sole traders, freelancers, contractors, and small business owners, an ABN is all you need. If you choose to incorporate as a Pty Ltd company, you will typically hold both an ACN (from ASIC) and an ABN (from the ABR) — and both serve distinct, non-interchangeable purposes.
Before registering, take the time to understand which business structure best suits your needs. The right structure will determine your registration obligations, tax treatment, liability exposure, and long-term business flexibility.