You’ve Got an ABN—Now What? How to Stay on the ATO’s Good Side

So you’ve taken the leap. You’ve started freelancing, side-hustling, running your own show – go you! But before you get too cozy calling yourself a business owner (and buying "Boss" mugs), let’s have a quick chat about the not-so-glam stuff: ABNs, income tracking, and the ATO not being your magical admin fairy.

🧾 First up: What even is an ABN?

An ABN (Australian Business Number) is like your business’s license plate. It tells the government (and your clients) that yes, you're operating a legit biz in Australia. If you’re invoicing clients, selling goods or services, or running a side hustle that isn’t just a hobby — you need one.

You can register for an ABN online, and it’s free. But heads up — once you’ve got it, you’ve entered the “grown-up” part of running a business.

Which brings us to...

💸 You have to track your income & expenses. No, really.

We’ve had a few clients assume that the ATO somehow… tracks this for them. Spoiler alert: they don’t. They’re the tax office, not mind readers.

If you’re running a business (yes, even a casual freelance gig), it’s your job to track every dollar that comes in and out. Income. Expenses. All of it.

The good news? You don’t have to do it with a shoebox full of receipts and a sad spreadsheet. We 100% recommend using accounting software products like Xero — cloud accounting that makes tracking your income and expenses way less painful (and even kind of satisfying, tbh).

🧮 Why does it matter?

Because at tax time, you’ll need to report all your business income. And if you’re not keeping track, you could end up:

• Paying too much tax

• Paying too little tax (and getting in trouble)

• Missing out on deductions

• Totally stressed and scrambling

Keeping things tidy from the start saves you time, money, and those frantic late-night "where is that invoice?!" panics.

💥 BONUS TIP: If your business earns $75,000 or more in a year, you must register for GST.

It’s not optional. As soon as you reasonably expect to hit that revenue threshold, it’s time to register. That means adding GST to your invoices and reporting it to the ATO quarterly (yes, more admin — but necessary). We have written a blog aaaaaalllll about different types of taxes if you wanted to upskill your knowledge on this one - check it out here.

Not sure if you're close to that $75k mark? Another reason to track your income like a boss.

🚀 TL;DR for Beginners:

• Got a side hustle or small biz? Get an ABN.

• Track your income & expenses — the ATO can’t read your mind.

• Use Xero to make life easier.

• Earning over $75k? Time to register for GST.

• Staying organised = staying sane.

Need help setting things up or unsure where to start? We’re here to help (with spreadsheets, software setups, and gentle, non-judgy reminders). You can contact us here

Disclaimer: The information provided is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice