Do you need an ABN to work as a remote closer in Australia?

If you’re working as a remote closer in Australia as an independent contractor, you’ll almost always need an Australian Business Number (ABN), because you’re running your own small business. If a company hires you as an employee, you don’t need one: you give them your tax file number (TFN) and they handle tax withholding and super. Getting an ABN is free through the government’s Australian Business Register, and GST registration only becomes compulsory once your turnover reaches $75,000. She Sells trains women in Australia and the US to close and set appointments, and helps certified graduates of our career program find roles. This is general information, not tax advice, so check your own situation with a registered tax agent.

The short answer: contractor or employee?

It comes down to one thing: are you an employee, or are you carrying on your own enterprise as a contractor? What the company calls you doesn’t decide it.

The Australian Business Register says you’re entitled to an ABN if you’re “carrying on or starting an enterprise in Australia”. It’s just as clear about the other side: you’re not entitled to an ABN for work you do as an employee, “even if you or your employer calls it contracting”, and an employer shouldn’t ask you to get an ABN as a condition of employment.

In remote sales, most closer and setter roles for online coaches, course creators and agencies are offered as contractor roles, often commission-only or commission-heavy. If that’s you, you’ll usually invoice the business and need an ABN. If you’re offered a salaried or hourly position with payslips, you’re an employee and you don’t.

Employee vs contractor (ABN): what changes for you

Obligation	Employee (TFN, no ABN)	Contractor (ABN)
What you give the business	Your TFN on a TFN declaration	Your ABN on each invoice
Income tax	Your employer withholds tax from each pay	Nobody withholds for you; you set money aside and may be put into PAYG instalments
GST	Not your concern	Must register within 21 days once GST turnover reaches $75,000
Superannuation	Employer pays super into your fund	Usually your job, unless you’re paid mainly for your own labour (see below)
Leave and minimum pay	Covered by Fair Work rules	No paid leave; you negotiate your own rates

Commission-only contracting has real upsides (flexibility, choosing your hours around school pick-up) and real downsides (no income in a slow month). I unpack both in commission-only sales jobs: the pros and cons.

How to get an ABN (it’s free)

According to business.gov.au, “It’s free to register for an ABN through the Australian Government’s Australian Business Register (ABR).” Some websites look official and charge a fee to lodge the same form, so go straight to the ABR.

1. Check you’re entitled. You need to be starting or carrying on an enterprise, which for a closer usually means contracting to one or more businesses as a sole trader.
2. Apply on the ABR website. Have your TFN and personal details ready. Most closers apply as a sole trader, which is the simplest structure.
3. Save your confirmation. The ABR says a successful application gives you your 11-digit ABN immediately. If your application needs review, you can check ABN Lookup to see when it’s processed.
4. Be ready to show it’s real. The ABR may ask for evidence that your enterprise has started, such as a contract or an offer from a business you’ll be closing for.

Applying when you’re not entitled is not a small thing: the ABR warns you may face prosecution if you apply for an ABN, register for GST and claim GST refunds when you’re not entitled.

GST: when you need to register

The ATO says you must register for GST when your business or enterprise has a GST turnover of $75,000 or more, or when you start a business and expect to reach that threshold. Once you’re required to register, you need to do it within 21 days, and penalties may apply if you don’t.

Below $75,000, registering is optional. Many new closers stay unregistered at first, because remote closing income often builds slowly while you learn. Commission is lumpy, and the way it’s calculated varies a lot between offers (I explain the common structures in high ticket closer commission explained). Keep an eye on your rolling total, because a few strong months can push you over the line faster than you expect.

Paying your own tax and super

Income tax and PAYG instalments

As an employee, tax comes out of your pay before it hits your account. As a contractor, every dollar of commission lands in full, and the tax bill comes later. A simple habit: move a set share of every payment into a separate savings account the day it arrives, with your tax agent’s help on the share.

The ATO may also put you into PAYG instalments, which are regular payments during the year, usually once every three months, to prepay your tax. According to the ATO’s PAYG instalments page, individuals and sole traders enter automatically if their latest tax return shows instalment income of $4,000 or more, tax payable of $1,000 or more and estimated tax of $500 or more. You can also opt in voluntarily, which some contractors prefer so there’s no big surprise at tax time.

Super: the rule many closers don’t know

Here’s the part that surprises people. Having an ABN doesn’t automatically mean you miss out on superannuation. The ATO says that if a business pays independent contractors mainly for their labour, they are treated as employees for super purposes, and “it doesn’t matter if the independent contractor has an Australian business number (ABN)”.

The ATO’s test looks at whether the contract is mainly for your labour (more than half its dollar value), whether you’re paid for your personal labour and skills rather than for achieving a specified result, and whether you must do the work yourself rather than delegate it. Commission-only closing is often paid for a result (a closed sale), so the answer for closers isn’t always obvious. Hourly or retainer-based setter roles may look different. This is exactly the kind of question to take to a registered tax agent, or to check with the ATO directly.

Sham contracting: when “contractor” is the wrong label

Some businesses call workers contractors to avoid paying leave, super and minimum wages. The Fair Work Ombudsman describes sham contracting as when a business tells a worker they’re an independent contractor when they’re actually an employee. Courts can impose penalties, with maximums per contravention of $21,840 for individuals and up to $546,000 for larger businesses.

Signs you might be an employee in disguise:

• You must work set hours the business controls, with no say in how you do the work.
• You can only work for that one business and can’t take on other clients.
• You were told to get an ABN as a condition of getting the job.
• You were let go as an employee and rehired as a contractor to do the same work.

No single sign settles it, and if something feels off, Fair Work can help. Our guide on how to find remote closing jobs covers what a fair offer usually looks like.

Closing for US clients from Australia

Many high-ticket offers are run by US businesses, and plenty of Australian closers take calls for them.

GST. The ATO says a supply of a service is GST-free if it’s used or enjoyed outside Australia, or made to a non-resident who isn’t in Australia when the supply is made. Its own example is an Australian freelance writer working for an English company who doesn’t include GST on the invoice. If you’re GST-registered and closing for an overseas business, your invoices to them may be GST-free. Confirm with your tax agent, because there are specific exceptions.

Income tax. GST-free doesn’t mean tax-free. If you live in Australia, the commission you earn from US clients still goes in your Australian tax return like any other business income.

Paperwork from the US side. US businesses often ask non-US contractors to fill in a W-8BEN form. The IRS says you give Form W-8BEN to the payer if you’re a foreign person and the beneficial owner of an amount subject to withholding, and you submit it when requested whether or not you’re claiming a reduced rate of, or exemption from, withholding. Read the IRS instructions or ask your agent before you sign.

If you’re in the US: a quick contrast

There’s no ABN in the US, so there’s no equivalent business number you have to apply for before you start contracting. If you’re a mum (mom in the US) closing from the States, the same principles still apply: know whether you’re being hired as an employee or as an independent contractor before you sign, set money aside for tax if nobody is withholding it for you, and use the IRS website for general information and a US tax professional for your own situation.

What She Sells covers

We’re a training ground, not a tax firm, so we’ll always send you to a registered tax agent for your numbers. What we do is help you build the skill and get the job. She Launches is our foundation program, with live coaching, role play and frameworks. She Soars is our career program through the She Sells Cert III in Remote Sales certificate, and once you’re certified, our recruitment team works with you to land a role within 90 days, or your money back. You can compare both on our programs page.

For what it’s worth, I made $440 in my first month of remote sales back in 2020. That’s my result, not typical, and it took time to build from there.

Frequently asked questions

Can I work as a remote closer without an ABN in Australia?

Yes, if you’re hired as an employee and give the business your TFN. If you’re contracting and invoicing a business, you’ll generally need an ABN, because ABNs are for people carrying on an enterprise.

How much does an ABN cost?

Nothing. Business.gov.au says it’s free to register for an ABN through the Australian Business Register.

Do I need to register for GST as a closer?

Only once your GST turnover reaches $75,000, or you expect it to. Then you have 21 days to register. Below that, it’s optional.

Do contractors with an ABN get super?

Sometimes. The ATO says contractors paid mainly for their labour are treated as employees for super purposes, even if they have an ABN. Commission-only closing is often paid for results, so check your arrangement with a registered tax agent.

Do I charge GST to US clients?

If you’re GST-registered, services to a non-resident who isn’t in Australia are generally GST-free under ATO rules. You still declare the income in your Australian tax return.

Results vary. Nothing here is a promise of income. See our earnings disclaimer.

Keep reading

• Sales skills you already have as a mum
• Making a real income from home as a single mum
• Remote closer vs appointment setter: which suits you
• Career change for nurses into remote work