Do I Need an ABN for Airtasker?

Tom Willis Chief Marketing Officer & Co-Founder, Lawpath

Tom Willis is an award-winning marketing leader and Co-founder of Lawpath. Tom’s journey journey includes steering several entrepreneurial projects and addressing the unique challenges faced by small businesses. As the Chief Marketing Officer at Lawpath, Tom has been pivotal in shaping the company’s marketing strategy and business growth.

Yes, if you’re doing Airtasker work as a business, you need an ABN. Taskers on Airtasker are treated as independent contractors, which makes you a sole trader, and a sole trader running a genuine business should have an Australian Business Number. The free part is the good news: an ABN costs nothing and takes minutes.

People trip up here. Airtasker feels like a side gig, so an ABN seems like overkill. The ATO sees it differently. Once you’re picking up tasks regularly and trying to make money, that’s a business in their eyes, whatever it feels like to you.

Do you need an ABN for Airtasker?

If you’re using Airtasker to earn money on a regular basis, yes. Taskers aren’t employees of Airtasker. You choose your tasks, set your price, and use your own tools, which makes you an independent contractor running your own small business. That’s the same position as an Uber driver or a food delivery rider, and it’s why an ABN applies.

An ABN does a few useful things once you have it. It lets you invoice clients properly, claim business expenses like equipment and travel, and avoid having tax withheld at the top rate when a business client asks for your ABN and you don’t have one. For anyone treating Airtasker as real income, it’s the bit of admin that makes the rest work.

Hobby or business: which one are you?

This is the real question, because the ABN rules hang on it. You’re entitled to an ABN if you’re carrying on a business, and you’re not if the activity is just a hobby. One genuinely occasional odd job can fall on the hobby side. Regular task work for profit does not.

The ATO looks at the pattern of your work. A few questions sort most people out:

• Are you doing it to make a profit? Intending to earn, not just cover costs, points to a business.
• Is it regular and repeated? Ongoing tasks week to week look like a business. A one-off looks like a hobby.
• Are you running it in a business-like way? Advertising your services, keeping records, and building a profile all count.

If you answered yes to those, you’re in business and you need an ABN. If you genuinely mowed one lawn once for a neighbour through the app, you’re probably not. When you’re unsure, the safe call is to get the ABN, because it’s free and it keeps you clean with the ATO. Our guide to choosing a business structure covers what being a sole trader means day to day.

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Do you need to register for GST as a tasker on Airtasker?

Only once you earn $75,000 or more a year. This is where Airtasker differs from rideshare. Uber and other rideshare drivers must register for GST from the first dollar, no threshold. Airtasker taskers follow the normal rule: GST registration is only required when your turnover hits $75,000 in a year.

For most taskers, that means an ABN but no GST. You still declare the income on your tax return and you can still claim deductions, you just don’t charge or remit GST until you cross the threshold. Keep an eye on your running total, because once you’re on track to pass $75,000 you need to register within 21 days. Our plain-English GST guide walks through how it works.

How to get an ABN for Airtasker

It’s quick, and you only do it once. Before you start, have your tax file number handy and know roughly when your task work started or will start.

1. Confirm you’re running a business. Use the hobby-or-business questions above. If it’s regular and for profit, you’re eligible.
2. Apply for the ABN. You can lodge it yourself through the government register, or use Lawpath’s ABN registration service to get it sorted in minutes.
3. Add it to your Airtasker profile and invoices. Quote it when a business client asks, so they don’t withhold tax from your payment.
4. Keep records from day one. Track income and expenses as you go. It makes tax time painless and backs up your deductions.

One more thing worth knowing. Airtasker, like other platforms, now reports what you earn to the ATO under the sharing economy reporting rules. So the income shows up whether you declare it or not. Getting the ABN and declaring the income means it won’t come back to bite you.

Frequently asked questions

Do I need an ABN to work on Airtasker?

Yes, if you’re doing task work regularly to earn money. You’re an independent contractor, which makes you a sole trader, and sole traders running a business need an ABN. A genuine one-off hobby task can be the exception, but regular work is a business.

Do I need to register for GST for Airtasker?

Only if you earn $75,000 or more a year from your work. Unlike rideshare drivers, Airtasker taskers use the standard GST threshold, so most need an ABN but not GST registration. Watch your annual total and register within 21 days if you’re about to cross it.

How much does an ABN cost?

Applying for an ABN through the government register is free. Lawpath can also register it for you for $55, and help with your business name, GST registration and other set-up tasks.

Do I have to pay tax on Airtasker income?

Yes. All income from task work is assessable and goes on your tax return, regardless of the amount. The upside is you can claim deductions for genuine work expenses. Airtasker also reports your earnings to the ATO, so declaring the income is the only safe option.

Getting started

If your Airtasker work has turned into something regular, sorting the ABN is the one bit of admin that makes everything else simpler. It’s free and fast, and it keeps you on the right side of the ATO.

Register your ABN with Lawpath in a few minutes and get back to the work that actually pays.