Thousands of Australians start selling online every year. Whether it is handmade candles on Etsy, second-hand clothes on eBay, or a full dropshipping store, one of the first questions that comes up is whether you need an ABN. The answer is not always yes. But getting it wrong can cost you real money.
This guide provides an answer tailored to your situation. It covers every major selling platform, explains what actually happens if you skip the ABN when you should have one, and clears up the most common misconceptions around GST.
No legal jargon. No guesswork. Just what you need to know.
What is an ABN and Why Does It Matter for Online Sellers?
An ABN (Australian Business Number) is a free, unique 11-digit number issued by the Australian Business Register that identifies your business to the ATO and to other businesses. For online sellers, it determines whether you can invoice legally, claim tax deductions, register for GST, and open a dedicated business bank account.
It is not the same as a business name, which you register separately through ASIC. And it is not the same as an ACN (Australian Company Number), which only applies if you set up a registered company.
Most solo online sellers only ever need an ABN.
Do I Need an ABN to Sell Online in Australia?
It depends on whether you are running a business or pursuing a hobby. If you are selling online regularly with the intention of making a profit, you need an ABN — regardless of how much you are currently earning.
The ATO draws a clear line between hobby and business. Your total turnover does not decide this. A lot of people assume they only need an ABN once they hit a certain income level. That is not how it works. The $75,000 threshold is about GST registration, not ABN registration. More on that shortly.
Think of it this way: if you sell handmade jewellery a few times a year just because you enjoy it and you are not trying to turn a profit, that is a hobby. If you are buying stock, setting prices to make a margin, and selling consistently, that is a business. Same product, very different legal situation.
How Do I Know If I Am Running a Business or a Hobby?
The ATO uses a set of practical indicators to decide whether your activity is a business. Ask yourself these questions honestly:
- Are you selling repeatedly and regularly?
- Do you intend to make a profit, even if you have not yet?
- Do you price your products above what they cost you?
- Do you advertise or pay for an online presence?
- Do you keep records, use a separate account, or operate in a structured way?
- Have you invested in stock, tools, or a platform to scale sales?
If you answered yes to most of these, the ATO will likely see you as running a business. You need an ABN.
The full guidance from the ATO on this distinction is available at ato.gov.au.
What Happens If I Sell Online Without an ABN When I Should Have One?
If you invoice another business without an ABN, that business is legally required to withhold 47% of your payment and send it directly to the ATO. That means you could receive less than half of what you invoiced — not because of the tax you owe, but because you had no ABN on the invoice.
Beyond that, the ATO can back-assess your income, apply penalties, and review previous years if they determine you were operating as a business without the correct registration.
You also cannot claim tax deductions on any business expenses without an ABN, which means your cost of goods, advertising spend, platform fees, and tools are all non-deductible.
Note that consumer-facing platforms like eBay may still process your payouts without an ABN. But that does not mean you are compliant. The ATO’s view of your business activity is separate from what the platform allows.
Do I Need an ABN to Sell on Each Platform?
No platform legally forces you to have an ABN to create a seller account. But if your activity qualifies as a business under ATO rules, you are required to have one regardless of which platform you use. Here is a quick breakdown by platform:
| Platform | ABN Required to Sign Up? | Do You Need One Under ATO Rules? |
|---|---|---|
| eBay Australia | No | Yes, if selling for profit consistently |
| Etsy | No | Yes, if you are pricing for profit and selling regularly |
| Shopify | No | Yes — and most suppliers won’t work with you without one |
| Amazon Australia | No | Yes, especially once you scale toward the GST threshold |
| Facebook Marketplace | No | Only if you are selling consistently for profit, not casual one-offs |
| TikTok Shop | No | Yes, if operating as a business seller |
The platform does not decide whether you need an ABN. The ATO does.
Do I Need an ABN for Dropshipping in Australia?
Yes. If you are running a dropshipping store for profit, you are operating a business under ATO rules, and you need an ABN. The fact that you do not hold physical stock does not change your classification. The ATO treats dropshipping as a retail business activity.
Beyond compliance, an ABN is practically necessary for running a dropshipping operation in Australia. You need it to open a business bank account and receive payouts from platforms like Shopify or Amazon.
Many Chinese and international suppliers on platforms like Alibaba will also ask for your ABN before agreeing to work with you — it signals that you are a legitimate business buyer, not just a casual shopper.
Without an ABN, you also cannot claim the cost of goods, advertising, or platform fees as tax deductions. For a dropshipping business where margins can be tight, that adds up fast.
You might also like to read: Is Alibaba Safe to Buy From Australia and How? 2026 Guide
Does Having an ABN Mean I Have to Register for GST?
No. Having an ABN does not automatically mean you must register for GST. These are two separate requirements. GST registration is only required once your business turnover reaches $75,000 or more per year.
You can hold an ABN and not be registered for GST if your turnover stays below that threshold. If you voluntarily register for GST, you can claim GST credits on your business purchases, which may be worth doing even before you hit $75,000.
Once you do reach the threshold, registration is mandatory, and you must add 10% GST to your Australian sales.
One important note: GST generally applies to Australian sales only. If you are selling to international customers, those sales are usually GST-free under the ATO’s export rules. Confirm your specific situation at ato.gov.au.
Can One ABN Cover Multiple Online Stores?
Yes. A single ABN can be used across multiple business names and multiple online stores, as long as all the activity falls under the same business entity. For most solo sellers operating as sole traders, one ABN is all they ever need regardless of how many storefronts they run.
Each additional business name costs around $42 per year to register through ASIC. All income from each store is reported under the one ABN at tax time. The only exception is if you decide to create a separate company for each store — in that case, each company would need its own ABN and ACN.
What Are the Benefits of Getting an ABN Even If You Do Not Have To?
Even if your current sales volume is low and you are technically still a hobby seller, getting an ABN opens up real, practical advantages that make growing your business easier from the start:
- Tax deductions: Claim all legitimate business costs — hosting, ads, packaging, tools, product sourcing.
- .com.au domain eligibility: You need an ABN to register a .com.au or .au domain name, which builds trust with Australian buyers.
- Business bank account: Separate your business finances properly from the beginning. This makes tax time much simpler.
- Supplier access: Many wholesalers and manufacturers — both local and overseas — only supply to ABN-registered businesses. If you are sourcing products to resell, this matters.
- Credibility: Customers and platforms treat ABN-holding sellers as more legitimate. It signals that you are serious.
If you are sourcing products from overseas to resell, this is especially relevant. Check out the 14 Best Vendors For Reselling in Australia (2026) to find suppliers that work with Australian businesses.
How to Source Products for Your Online Store as an Australian Seller?
If you are building a dropshipping or online reselling business and you are sourcing products from China, having your ABN sorted is step one. Step two is finding the right sourcing partner.
CHANGE Sourcing works with Australian online sellers and dropshippers to connect them with verified manufacturers and suppliers in China.
The team is based in Yiwu, China — one of the world’s largest wholesale markets — and handles supplier verification, price negotiation, quality control, and logistics on your behalf.
For Australian dropshippers specifically, CHANGE Sourcing helps you establish supplier relationships that require ABN verification, get better pricing through direct factory negotiation, and manage the quality of your products before they ship.
This removes the biggest friction points for Australian sellers who want to source from China without the risk of dealing with unreliable suppliers.
You can get a free consultation here to discuss your product category and sourcing needs.
Also helpful: Top 15 Cheapest Sourcing Platforms in 2026 by Business Type
How Do I Apply for an ABN?
You can apply for an ABN for free at abr.gov.au. Most applications are processed within minutes. Here is how to do it:
- Go to business.gov.au and use the Business Registration Service.
- Choose your business structure. Most online sellers register as a sole trader — the simplest and most common option.
- Enter your personal details, Tax File Number (TFN), and a description of your business activity.
- Submit your application. Your ABN is usually issued immediately or within 20 business days if the ATO requires additional review.
ABN registration is completely free. You do not need a lawyer, accountant, or paid service to apply. Anyone claiming otherwise is trying to charge you for something the government provides at no cost.
ABN vs ACN: What is the Difference?
An ABN identifies your business for tax and invoicing purposes. Every business type — sole traders, partnerships, trusts, companies — needs one. An ACN (Australian Company Number) is only issued when you register a company with ASIC, and it is separate from your ABN.
As a sole trader running an online store, you only need an ABN. You only need an ACN if you decide to structure your business as a Pty Ltd company. If you do go down that path, the company will have both an ACN and an ABN — they serve different functions and exist alongside each other.
FAQs
Yes, eBay does not require an ABN to create a seller account. But if your eBay activity qualifies as a business under ATO rules — meaning you sell regularly and intend to make a profit — you are legally required to have one.
No. Registering for an ABN through the Australian Business Register at abr.gov.au is completely free. There is no annual fee to maintain it either.
Yes. If you register as a sole trader, your ABN is tied to you as an individual. You use that same ABN for your online store, or across multiple stores, under your own name or registered business names.
Occasional personal sales — selling old furniture or a used phone, for example — are generally considered private transactions, not business activity. No ABN is needed. However, if you are buying items specifically to resell them at a profit, the ATO may classify that as a business even if volumes are low.
That is the GST registration threshold, not the ABN threshold. Once your business earns $75,000 or more in a 12-month period, you must register for GST. You can and should get an ABN well before reaching that level.
Wrapping Up
If you are selling online in Australia with the goal of making a profit, you need an ABN. Getting one is free, takes a few minutes, and immediately unlocks tax deductions, supplier access, and a more credible business setup. The only question is whether you qualify as a business or a hobby — and most people selling regularly are firmly in business territory.
Apply at abr.gov.au and get your store set up the right way from day one. It is one of the few admin tasks that actually pays for itself.
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