What is an ABN in Australia, and when should international students get one?

BWONDER AGENCY
Aug 4
2 min read

Australia allows international students to work while studying, which opens doors to various job opportunities, both as employees and as freelancers. If you’ve heard of the ABN but aren’t sure what it is or whether you need one, this article will guide you through everything you need to know.

What Is an ABN?

An ABN (Australian Business Number) is a unique 11-digit number that identifies you as a business or sole trader with the Australian government, specifically the Australian Taxation Office (ATO).

Having an ABN allows you to work as an independent contractor or freelancer, invoice clients, and manage your tax obligations.

Who Needs an ABN?

You need an ABN if:

You’re working as a freelancer or contractor, not as an employee.
You provide services like graphic design, photography, tutoring, event staff, content creation, deliveries, etc.
A client or company asks you to invoice with an ABN to get paid.
You run a small business or side hustle.

Important: If you're working as an employee under a TFN (Tax File Number) at a restaurant, shop, hotel, or company, you do not need an ABN. In those cases, your employer handles your taxes.

When Should International Students Get an ABN?

As a student, having an ABN is not required unless you plan to work independently. It’s a good idea if:

You want to freelance or work as a contractor, such as in photography, digital content, or deliveries.
You’re offered a job where the employer requires you to invoice them.
You’re launching a personal project or starting a small business.
You’re interested in learning about entrepreneurship while you study.

That said, you should only apply for an ABN if you truly need it, as it comes with legal and tax responsibilities.

What Does Having an ABN Involve?

You’ll need to report your income to the ATO every financial year.
You must keep records of income and business expenses.
You may be required to register for GST (Goods and Services Tax) if your earnings exceed AUD 75,000 (unlikely for most students).
You won’t receive employee benefits like sick leave or paid holidays.

How to Apply for an ABN

Getting an ABN is free and can be done online in under 30 minutes. You can apply yourself at abr.business.gov.au or ask a tax agent for help.

You’ll be asked to describe the type of work you do, your start date, and your details.

Tips for International Students

Check your visa conditions: International students are allowed to work up to 48 hours per fortnight during study periods. Having an ABN does not exempt you from this limit.
Be cautious of exploitation: Some employers use the ABN system to avoid their obligations. If you’re doing a job that should be under TFN, contact Fair Work Australia to check your rights.
Understand your tax obligations: When you work with an ABN, you are responsible for setting aside money for taxes. A good rule is to save 15–20% of what you earn for your annual tax return.