If you are considering setting up a business in Australia, you may be familiar with two key identifiers: the ABN and the ACN. Whilst they may seem similar- they often get confused despite serving different purposes and are issued by different government bodies. Understanding these identifiers is important to ensuring your business is compliant with Australian law as well as your growing business.
Similarities Between ABN vs ACN
- Unique identifiers
- Government Issued
- Required for compliance
- To be displayed on documents, invoices, quotes, official company documents and websites.
ABN vs ACN: What is an ABN?
ABN stands for Australian Business Number. An ABN is an 11-digit identifier that is issued to businesses by the Australian Business Register (ABR), which is managed by the Australian Taxation Office (ATO). It is primarily used for tax and business identification purposes and a common requirement on associated applications.
Key Functions of an ABN:
- Allows participation in the Pay As You Go (PAYG) withholding system
- Helps when applying for an Australian domain name (.com.au or .net.au)
ABN vs ACN: What is an ACN?
ACN stands for Australian Company Number. An ACN is a unique 9-digit number issued to companies upon registration by the Australian Securities & Investments Commission (ASIC). It serves as a legal identifier for companies (as opposed to sole traders or partnerships) and must be displayed on all company documentation (i.e invoices, contracts, letterheads etc). Necessary for company registration, an ACN legally identifies a company in Australia and is used to track and regulate them via ASIC. After an ACN is registered, your business will become a legal entity that is separate from its owners.
ABN vs ACN: Key Differences
| Feature | ABN (Australian Business Number) | ACN (Australian Company Number) |
| Issued By | Australian Business Register (ABR) / ATO | Australian Securities and Investments Commission (ASIC) |
| Who Needs It | Sole traders, partnerships, companies, and trusts | Only companies registered under the Corporations Act |
| Legal Structure Applicability | Any business structure | Only incorporated companies |
| GST Registration | Required if turnover is over $75,000 | ACN alone does not cover GST; company still needs an ABN |
| Name Registration | Needed to register a business name | Company name registration includes ACN automatically |
| Change Over Time | ABN may be cancelled or reissued | ACN remains the same for the life of the company |
How to apply for an ABN and/or ACN
Applying for an ABN
You can apply for an ABN via the online at the Australian Business Register (ABR) website or through the same portal when registering your company. You may also choose to apply via a business or tax professional. In any case you will need to know your business structure (e.g., sole trader, partnership, company), Proof of your identity and details of your business activities. Unless further details or checks are required, your application will be processed within a few days and notified of your outcome via the ABR website portal or email.
Applying for an ACN
To get an ACN, you must register with a company through ASIC via the ASIC website, through a third-party business registration service (i.e. LEAP software services) or through a registered accountant or business advisor. Once approved, your company will be issued an ACN automatically. Accompanying this will be documents. For example if you register via ASIC you will receive a Certificate of Registration of a Company and (if applicable) associated documentation for share distribution, company constitution, director details, common seal register etc.
Penalties for Non-Compliance
Failing to register or display your ABN/ACN correctly can result in:
- Fines and penalties
- Tax withholding at the top marginal rate (if you don’t provide an ABN to clients)
- Potential legal issues
Searching for an ABN, ACN or Name
You can search for active ABN’s and names online via the Australian Business Register (ABR) website. Allowing you to refine your search by “Entity name, Business name or trading name” as well as if they are deductible gift recipients or have charity tax concessions and by what state of Australia. The site displays both general current and historical details of the ABN that include hyperlinks directed to the ASIC Connect Website where you can purchase information extracted from the ASIC business name register.
FAQs
Can I have an ABN without an ACN?
Yes – if you are not operating as a company. Sole traders, partnerships, and trusts often only need an ABN.
Can a company operate without an ABN?
Technically yes, but if it earns income or trades, it will likely need one. Most companies register for both.
Can I have multiple ABNs?
You can only have one ABN per business entity, but if you have different entities (e.g., a company and a sole trader business), each can have its own ABN.
Do ABNs and ACNs expire?
No, but they can be cancelled if the business is no longer active. Each ACN/ABN will be assigned a registration and renewal date.
Conclusion
In Australia, ABNs and ACNs are vital business identifiers that serve different roles. By understanding the distinction between the two ensures that your business stays compliant with regulatory requirements. By going through the application process for both, it allows the applicant to consider their business structure and objectives as well as encouraging the applicant to keep your records up to date.
Jake McKinley notes that this article is written for the purpose of providing generalised information and not to provide specialised legal advice. If you require qualified legal advice on anything mentioned in this article, our experienced team of solicitors at Jake McKinley are here to help. Please get in touch with us on 02 9232 8033 today to make an enquiry.
Written by Brooke Nguyen, Law Graduate
