Can you invoice without an ABN in Australia?

Technically, yes — you can invoice without an ABN in Australia. But if you're supplying goods or services to a business and don't quote an ABN, that business is legally required to withhold 47% of your payment and send it straight to the ATO. For most tradies, invoicing without an ABN causes more problems than it solves. This guide explains exactly when it's allowed, when the withholding rule kicks in, and why getting an ABN is almost always the better move.

Do you legally need an ABN to invoice someone?

An ABN (Australian Business Number) identifies your business to the ATO and everyone you deal with. You don't strictly need one to do occasional work or run a small side hustle — but the moment you're "carrying on an enterprise" (regularly doing paid work with the intention of making a profit), the ATO expects you to have one.

Most tradies — even part-time or just starting out — are carrying on an enterprise from their very first paid job. That means an ABN isn't optional in practice, even though nothing physically stops you from writing an invoice without one.

What actually happens if you invoice a business without an ABN?

This is the part most tradies don't know about: the no-ABN withholding rule. If you supply goods or services worth more than $75 (excluding GST) to another business and don't quote an ABN on your invoice, that business is required by law to withhold tax from your payment at the top marginal rate — currently 47% — and remit it to the ATO on your behalf.

• You invoice a builder for $800 of labour with no ABN on the invoice
• The builder must withhold 47% ($376) and pay it to the ATO
• You only receive $424 — and have to claim the withheld amount back through your tax return

This rule exists to stop cash-in-hand work from slipping under the radar. It's a real cash-flow hit, and it applies automatically — the business paying you doesn't have a choice once they know you have no ABN.

When can you invoice without an ABN and avoid withholding?

There are a handful of situations where a business doesn't need to withhold tax even without an ABN. These are set out on the ATO's "Statement by a supplier" form, which you give to the business instead of an ABN. It applies if:

• You're an individual supplying goods or services as a private recreational pursuit or hobby — not as a business
• The supply is wholly of a private or domestic nature for the payer (e.g. mowing a neighbour's lawn as a one-off favour, not a business)
• The total payment is $75 or less (excluding GST)
• You're not required to have an ABN because you're not carrying on an enterprise in Australia

For a genuine tradie doing paid jobs regularly — even small ones, even part-time — none of these exceptions usually apply. If you're accepting jobs, quoting prices, and getting paid for trade work, you're running an enterprise, and the ATO expects an ABN.

ABN vs GST registration — they're not the same thing

A lot of confusion comes from mixing up two separate registrations:

• ABN — identifies your business. Free to get, no turnover requirement, and most tradies should have one from day one.
• GST registration — only required once your turnover reaches $75,000 a year. Under that, it's optional.

You can have an ABN without being registered for GST — plenty of tradies do exactly this while they're building up their business. What you shouldn't do is skip the ABN entirely just because you're not GST-registered yet. See our guide on the GST registration threshold for tradies for the full breakdown of when GST registration kicks in.

Quick reference: ABN and withholding scenarios

Note that the withholding rule only applies when the payer is a business. If you're invoicing an individual homeowner for a private job, the ABN withholding rule doesn't come into play — though you'll usually still want an ABN for your own record-keeping, insurance, and professionalism.

Why almost every tradie should just get an ABN

Beyond avoiding the 47% withholding hit, having an ABN:

• Lets you register a business name and open a business bank account
• Makes you eligible to register for GST once you approach the $75,000 threshold
• Signals to builders, property managers, and commercial clients that you're a legitimate operator
• Is required to claim most business expenses and tools-of-trade deductions properly

Once you have an ABN, make sure every invoice you send includes it — along with the other fields the ATO expects. See our guide on what a tax invoice must include for the full checklist. A free invoice app for tradies like TradesBill adds your ABN to every invoice automatically, so you never have to worry about leaving it off.

Frequently asked questions

Can I apply for an ABN if I only do occasional trade work?

Yes. You don't need to be full-time or incorporated to get an ABN — sole traders doing part-time or occasional paid work are exactly who ABNs are for. If you're regularly accepting paid jobs, you should apply.

What if a customer refuses to withhold tax even without my ABN?

The withholding obligation is on the paying business, not you — but if they don't withhold when they're supposed to, they can be penalised by the ATO. It's not something to rely on; assume any business customer will withhold correctly.

Do I need an ABN if I'm just helping out a mate?

If it's a genuine one-off favour with no ongoing business intention, you likely don't need one for that specific job. But if you're regularly doing paid trade work — even casually — the ATO considers that carrying on an enterprise, and an ABN is expected.

Does having an ABN mean I have to charge GST?

No. An ABN and GST registration are separate. You only need to charge GST once you're registered for GST, which is only compulsory once your turnover hits $75,000 a year. Read our guide on the GST registration threshold for details.