Do I Need to Lodge a Tax Return with an ABN?

Yes — if you have an ABN and earn income in Australia, you generally need to lodge a tax return. Even if you made a loss or earned very little, you still need to report your business activity correctly.

Having an ABN means you’re operating as a business. That comes with obligations. Whether you made $1,000 or $100,000, the ATO expects you to declare your income and complete your tax return accurately.

When You Must Lodge a Tax Return with an ABN

You must lodge a tax return if:

• You earned income under your ABN
• You had business expenses or losses
• You received payments without tax withheld
• You are registered for GST

Even if your income is low, the obligation still applies.

When You Might Not Need to Lodge

There are limited situations where you may not need to lodge:

• Your ABN was registered but never used
• You had no income and no business activity
• You cancelled your ABN before earning income

But be careful — doing nothing is not the same as not needing to lodge.
In many cases, you still need to notify the ATO.

What Happens If You Don’t Lodge

Ignoring your tax return is not a strategy.

Possible outcomes include:

Most problems start small — then snowball.

ABN Income vs Employee Income

With an ABN, you’re in control — but you’re also responsible.

What If You Made a Loss?

You still need to lodge.

A business loss doesn’t remove your obligation — it just changes the outcome.

In fact, losses can sometimes reduce your overall tax position when applied correctly.

Common Mistake: “I Didn’t Earn Much, So I’ll Skip It”

This is one of the most common mistakes.

Even small amounts of income:

• Need to be declared
• Are often tracked by the ATO

Skipping your return doesn’t make it disappear.

Example: Small Income, Bigger Problem

A freelancer earned $6,500 under an ABN:

• Didn’t lodge thinking it was too small
• ATO flagged missing income
• Penalties applied

After fixing:

• Return lodged
• Penalties reduced
• Issue resolved

Avoidable problem.

Record Keeping Still Matters

Even if your income is low, your records still need to be accurate.

Using a system like:
https://www.ecashbooks.com.au/

…means:

• Income is tracked
• Expenses are recorded
• You know where you stand

No guessing.

Related: Understanding ABN Tax Deductions

If you’re lodging, you should also be claiming correctly:

https://www.gotax.com.au/abn-tax/abn-tax-deductions-australia

If You’re Unsure Whether You Need to Lodge

There are only two outcomes:

• You lodge and stay compliant
• You don’t lodge and risk penalties

There’s no upside in guessing.

How GoTax Handles This

GoTax makes it simple to meet your obligations:

• Guides you through your ABN income
• Helps you claim tax deductions correctly
• Reviews your return before submission
• Fixed price of $140

Start your online tax return here:
https://www.gotax.com.au/

FAQ

Do I need to lodge a tax return if I have an ABN?

Yes — if you earned income or had business activity.

What if I didn’t make much money?

You still need to lodge and report your income.

What happens if I don’t lodge?

You may face penalties, interest, and ATO action.

Do I need to lodge if my ABN wasn’t used?

Possibly not — but you may still need to notify the ATO.

What Now?

If you’ve earned income under an ABN, the safest move is simple — lodge your tax return properly.

Delaying it doesn’t improve the outcome. It usually makes it worse.

Signup to GoTax and not only get your Tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein - that is our very own D.e.r.e.k as well as the best credentialed Tax Accountants around.

https://www.gotax.com.au/small-business-tax-return

About This Article

Author: GoTax Editorial Team
Topic: Australian Tax Returns and ABN Lodgement
Audience: Small Business Owners, ABN Holders, Freelancers
Purpose: Help users understand if they need to lodge a tax return Australia and remain compliant