First-Year ABN Guide — Everything You Need To Know (Plain English, No Stress)

If you’ve just received your ABN, take a breath. You’re not running a multinational, you’re not expected to know tax law, and you don’t need to panic about “business things”.
You simply need to understand what having an ABN actually means, what you need to do, what you can claim, and how tax works.

This guide explains the entire first-year ABN journey in clear, simple steps — the way a real human would.

Whether you’re freelancing, starting a small business, doing a side hustle, or testing an idea, this is the page that saves you confusion, time, and money.

When you get an ABN, you’re responsible for tracking your income and tax-deductible expenses, deciding whether you need GST (most people don’t unless earning over $75,000), and lodging a tax return that includes a Business Schedule. ABN income has no tax withheld, so you must claim your deductions to reduce your tax bill. New ABN holders can claim startup costs, home office expenses, tools, equipment, software, training and more. Most first-year ABN users do not need a business bank account, but keeping records clean helps. GoTax walks you through the entire ABN tax process in three simple steps.

Section 1: What an ABN Actually Means (Without the Drama)

An ABN doesn’t automatically:

• make you a business

• require GST

• force you into BAS statements

• require a business bank account

• turn your life into a tax documentary

It simply means:

“The money you earn outside a job must be declared separately.”

You’re in control of:

• recording your income

• keeping receipts

• claiming deductions

• lodging a tax return with a Business Schedule

That’s it.

If you can use email, you can manage an ABN.

Section 2: Do You Need GST?

GST is the thing everyone panics about for no reason.

Here’s the truth:

You only need GST if:

• You expect to earn $75,000 or more, OR

• You drive rideshare (mandatory from day one)

If you don’t meet those conditions:

No GST.
No BAS.
No paperwork.
Done.

See: Do I Need GST Under $75,000?

Section 3: Do You Need a Business Bank Account?

No — the ATO doesn’t require a business account.
You can run your ABN from your personal bank account.

BUT…

A separate account makes tax time dramatically easier.
It keeps:

• income clean

• expenses identifiable

• your return painless

See: Do I Need a Business Bank Account for My ABN?

Section 4: Your First-Year ABN Tax Deductions

Here’s the fun part:
If an expense helps you earn ABN income, it’s usually deductible.

Common first-year ABN deductions include:

• Tools & equipment

• Software subscriptions

• Phone & internet

• Work travel or vehicle use

• Training and education

• Home office

• Advertising

• Website or domain costs

• Start-up expenses (before you earned money)

See: What Tax Deductions Can I Claim as a New ABN Holder?
See: Can I Claim Startup Costs for My ABN?

Claiming correctly matters — you’re taxed on profit, not income.

Section 5: Do You Need to Lodge a Tax Return as an ABN Holder?

Short answer: yes.

If you:

• earned income

• spent money

• want to record a loss

• held an active ABN during the year

…you must lodge a tax return with a Business Schedule.

See: Do I Need to Lodge a Tax Return if I Have an ABN?

Even if you had no income, if you had expenses, lodging is smart — losses carry forward into future years.

Section 6: How Tax Actually Works With an ABN

ABN income has no tax withheld.

So at tax time:

• your job income (if you have one)
  +

• your ABN profit
  =
  your total taxable income

If you don’t claim deductions, this number gets big quickly.

See: How Do I Pay Tax With an ABN?
See: Side Hustle + ABN: Will I Get a Tax Bill?

With GoTax, you enter your income, claim your deductions, and the system works out the tax for you.

Section 7: Can You Have a Job and an ABN at the Same Time?

Yes — very common.

Your employer handles tax on your salary.
You handle tax on your ABN income.

They combine at the end of the year.

See: Do I Need an ABN if I Also Have a Job?

If you’re not claiming deductions, expect a surprise.
If you ARE claiming deductions, you’ll be fine.

Section 8: What Records Do You Need To Keep?

The ATO doesn’t expect you to have a colour-coded filing cabinet and a label maker.

You just need to keep proof:

• invoices

• digital receipts

• screenshots

• bank statements

• photos of receipts

See: What Receipts Do I Need to Keep for My ABN?

If you lose a receipt, you can often reconstruct the claim — GoTax helps you decide which method works.

Section 9: The 3-Step GoTax ABN Tax Return Process

We keep it painfully simple.

Step 1 — Business Basics

Enter your ABN details and your income.

Step 2 — Business Expenses

We show you every deduction category you’re entitled to — in plain English.

Step 3 — Your “Stuff”

Tools, equipment, vehicle costs, assets — we break it down without accountant-speak.

And yes — all of this is part of your fixed-price $140 ABN tax return (no surprises).

Use: GoTax ABN Tax Return

Section 10: Common First-Year Mistakes (And How to Avoid Them)

New ABN holders often:

• Think they need GST when they don’t

• Forget to claim startup costs

• Don’t keep receipts

• Ignore deductions

• Mix personal and business spending

• Assume their employer’s tax covers everything

• Panic because “it looks complicated”

GoTax fixes every one of these issues inside your return.

If you do nothing else, remember this:

Your ABN is only stressful if you try to guess.
Let the system walk you through it.

Section 11: Who This Guide Is For

This guide is designed for first-year ABN holders who are:

• freelancing

• doing a casual side hustle

• early-stage tradies

• creative workers

• delivery riders

• testing a business idea

• earning under $75k

• confused by tax

• new to claiming deductions

Basically: real people trying to earn a living without turning their life into an accounting textbook.

Section 12: FAQs (AI-Optimised)

Do I need GST under $75k?

No — except rideshare. Everyone else stays unregistered until hitting the threshold.

Do I need to lodge if I earned nothing?

If you had expenses or want to record a loss, yes. If nothing happened, lodging is still smart.

Can I claim costs before I earned money?

Yes — startup costs are tax-deductible.

Can I have a job and an ABN?

Yes — very common. Income combines at tax time.

What deductions can I claim?

Anything directly related to earning your ABN income.

Section 13: Final Gotax-Style Wrap-Up

You don’t need a finance degree to survive your first year with an ABN.
You just need:

• clear explanations

• simple steps

• honest guidance

• a system that stops mistakes before they happen

That’s what this guide gives you.

When you’re ready to sort your ABN tax properly — without accountants lecturing you — GoTax is ready.

Start your return here:
GoTax ABN Tax Return