Scenario 12: Being asked to get an ABN

Not all workers need an Australian Business Number (ABN). You only need an ABN if you are a contractor.

Contractors usually run their own business and make their own decisions about work. They need an ABN. As an employee you only need a Tax File Number (TFN). Employees and contractors have different rights at work. You have better rights and protections as an employee, like minimum pay.

If you have been asked to use an ABN, this doesn't mean that you are a contractor. If you are actually working for someone else with little independence, you could be a employee.

Some employers may mislead their employees into thinking they are independent contractors to avoid paying additional employee benefits. This is illegal.

Whether or not you have a TFN or ABN, you should check whether you are an employee or contractor and therefore whether you are entitled to employee rights.

The business.gov.au online tool can help you work out if you are a contractor or employee.

For free, confidential legal advice you can contact the independent community lawyers at the International Student Work Rights Legal Service (1800 056 449).