Can I Claim Business Expenses Without a Registered ABN?

Gotax Publishing – 21 November 2025
Estimated reading time: 6 minutes

Running a Business Without an ABN? Here’s What You Can (and Can’t) Claim

If you’ve earned income from a side hustle, freelance gig, or informal business activity, you might be wondering:
Can I still claim business expenses on my tax return—even if I don’t have an ABN?

The short answer: Yes, but it’s risky. The ATO expects anyone carrying on a business to register for an ABN. If you don’t, your deductions may be questioned or denied.

What Is an ABN and Why Does It Matter?

An ABN (Australian Business Number) is an 11-digit identifier for businesses registered with the ATO. It’s required if you:

• Earn income from business activities
• Invoice clients or customers
• Operate as a sole trader, partnership, company, or trust
• Want to register for GST or claim fuel tax credits

Without an ABN, your income may be taxed at the highest rate (47%) under the no-ABN withholding rules.

Can You Claim Deductions Without an ABN?

Yes—but only if:

• You’re genuinely carrying on a business
• The expenses directly relate to earning assessable income
• You keep proper records (receipts, invoices, logs)
• You report the income in your individual tax return

Examples of claimable expenses:

• Website hosting and domain fees
• Equipment and tools used for business
• Marketing and advertising costs
• Travel and phone expenses
• Software subscriptions

Important: If the ATO suspects you’re operating a business without an ABN, they may deny your deductions or apply penalties.

What Counts as “Carrying on a Business”?

The ATO considers several factors:

• Repetition and regularity of activity
• Intention to make a profit
• Business-like operations (invoicing, advertising, planning)
• Record-keeping and financial tracking
• Scale and commercial viability

If you meet these criteria, you’re expected to register for an ABN—even if your income is small.

What Happens If You Don’t Register?

• Clients may withhold 47% of payments under the no-ABN withholding rule
• You may lose access to GST credits and fuel tax refunds
• Your deductions may be denied
• You may face penalties for non-compliance

Gotax helps you register for an ABN and claim deductions legally.

FAQs

Can I claim expenses for a hobby?
No. Hobby expenses are not deductible. Only genuine business expenses qualify.

Will the ATO audit me if I claim expenses without an ABN?
Possibly. It depends on your income, activity level, and risk profile.

Can Gotax help me register for an ABN?
Yes. Gotax guides you through ABN registration and helps you lodge your tax return correctly.

What if I only earned a small amount?
Even small businesses may need an ABN. Gotax helps you assess your eligibility.

Claim Smart, Stay Compliant

Claiming business expenses without an ABN is possible—but risky. If you’re earning income from business-like activities, the ATO expects you to register. Gotax helps you stay compliant, claim every legal tax deduction, and avoid penalties.

Lodge smarter. Deduct better. Use Gotax.

Gotax Covers All Business Structures—Are You Paying Too Much?

Gotax supports all types of business tax returns with transparent pricing and fast online lodgement. Get your quote now:

• Company Tax Returns — from $450
• Trust Tax Returns — from $400
• Partnership Tax Returns — from $350
• Superannuation Year End — from $950
• Individual Businesses — $140

Disclaimer

This blog is an information source only. Make sure you seek professional advice, like Gotax, before you act on its contents.