ABN on a Working Holiday Visa: Do You Actually Need One?

When you actually need one

You need an ABN if you're running your own business or working for yourself as a sole trader, invoicing clients or businesses directly rather than being paid wages through a payroll. Common examples for working holiday makers:

• Rideshare driving and food delivery (Uber, DoorDash and similar)
• Freelance or contract work where you invoice clients
• Content creation and online work
• Some farm or trade contracting where you genuinely operate independently

In all of these, you're the business. You set your own terms, you invoice for your work, and no employer is withholding tax on your behalf.

When you don't need one (and shouldn't get one)

If you're an employee, you're not entitled to an ABN for that work, even if the employer calls it "contracting". This is the rule straight from the Australian Business Register: you can't hold an ABN for work you do as an employee, and an employer shouldn't make getting one a condition of employment.

Here's why this matters. Some employers, particularly in farm work and hospitality, ask backpackers to get an ABN and work as a "contractor" so they can avoid paying you superannuation, avoid withholding your tax, and sidestep your rights as an employee. This is called sham contracting, and the ATO and Fair Work Ombudsman actively investigate it. It's not you doing something wrong, it's the employer, but you're the one who ends up worse off: no super, no leave, and a tax bill you have to sort out yourself.

How to tell which side of the line you're on. You're probably an employee, not a genuine contractor, if:

• The employer controls your hours and how you do the work
• They provide the tools, equipment, or vehicle
• You work for that one business rather than running your own operation serving multiple clients
• It looks and feels like a normal job, just with an ABN attached

If that describes your situation and you're being asked to get an ABN, that's a flag. You don't have to accept it. You can ask to be put on the books as an employee with a TFN, and if something feels off, the Fair Work Ombudsman is the place to check your rights. The ATO also has an employee-or-contractor decision tool if you want to check your status properly. Freshie can't decide your status for you, but those are the people who can.

You need a TFN first

You can't apply for an ABN without a Tax File Number. So the order is: get your TFN, then apply for an ABN only if you genuinely need one. If you haven't sorted your TFN yet, start with our Tax File Number guide.

Tax works differently with an ABN

This is the part that catches people out. When you're an employee on a TFN, your employer withholds tax from each payslip, so it's handled as you go. With an ABN, nothing is withheld. Every payment you receive is the full amount, and the tax on it is your responsibility to set aside and pay later.

A few things to know:

• Set money aside from every payment for tax. A rough rule many people use is putting aside a portion of each invoice so you're not caught short at tax time. How much depends on your income, so treat it as money that isn't really yours to spend.
• Working holiday maker tax rates still apply. The first $45,000 you earn is taxed at 15% (across both employee and ABN income), with standard rates above that.
• You lodge a tax return at the end of the financial year (30 June), declaring your ABN income and claiming any genuine business expenses as deductions.
• GST only matters if you turn over $75,000 or more in a year. Most working holiday makers are nowhere near this, so you generally don't need to register for GST. Don't let anyone talk you into registering for tax you don't owe.

Because the tax side is genuinely more involved than employee income, this is one area where it can be worth talking to a registered tax agent, especially when it's time to lodge your return.

How to apply (if you genuinely need one)

Applying is free and takes a few minutes through the official government site. Never pay a service to do it for you, it's a free government process, and paid "ABN registration" middlemen are charging you for something you can do yourself in minutes.

1. Make sure you have your TFN first.
2. Go to the Australian Government's Business Registration Service and start a new business registration. The Australian Business Register explains eligibility separately.
3. Answer the questions about your business activity honestly. The form checks you're actually entitled to an ABN.
4. Enter your details, including your TFN, passport, and visa information.
5. Submit. If everything's in order you usually get your ABN straight away. If your application is flagged for review, it can take up to 20 business days, with a confirmation letter within 14 days.

Keep your ABN details up to date while you have it, and cancel the ABN through the same site when you stop the work or leave Australia.

A note on the 6-month work rule

Your visa limits you to 6 months with any one employer (condition 8547). If you're working as a genuine sole trader, each separate client counts as its own relationship, so working for several clients at once is fine. But this doesn't turn a normal job into contracting. If you're really an employee for one business, the 6-month limit applies and an ABN doesn't get around it. Don't let an ABN be sold to you as a way to stay longer with one employer.