Why is the Individual/Sole Trader applying for an ABN?


I want to apply for an ABN to work with deliveroo, but the last question : Why is the Individual/Sole Trader applying for an ABN?*
i am not sure if i should reply :payments for services or contractor.

Thanks for your help.


  • You're a contractor.

  • ask deliveroo

  • They make you apply for an ABN to avoid paying you super and also if anything happens, they will just say "sorry not our employee".

    • I am in this position now.. my new employer wants me to get an ABN so he doesn't have to pay super and all the other stuff what can I do.. I don't have not many options and well I was thinking of doing some small IT Services through gumtree and airtasker so this might help.

  • Sham contracting

  • Try to apply thoroug Deliveroo or by this website https://www.veromo.com/drive-yello/.I applied my own and ATO cancel my APN . Because according to ATO you are employees of all food delivery company including uber eats for example . Many of my frnd applied through this website which official partner of Yello food delivery service but I think anyone can use, their ABN didn't got cancelled.

  • Be careful they are cracking down on people with ABN,s as if a certain % of your income can't come from 1 source.
    If it does you must pay normal tax rate . Friend was a sub contractor for one company tax agent did his tax at the business
    Rate but ATO made him pay the normal rate back dated years owed over $60,000 in tax

    Be very careful !!!

    • I'm sorry, but your friend has (had?) a crap tax agent… he/she should have known what tax rate to apply to him and it's got nothing to do with getting a % from 1 source or more.

      If he's working as a sole trader, he is taxed at the individual tax rate… never business rate. A sole trader is determined by the nature of the work i.e if you're a one man show (do everything yourself), you're a sole trader, but if you hire people to do other roles within the business (secretary, apprentices, etc), you're company and can be taxed at company rates.

      The only % based determination was that 90% of your total income needed to come from your ABN-related work for you to qualify to claim after-tax super contributions as tax deductions. I believe the latest budget is going to open that option up for everyone.