How to start selling on commission with an ABN in Australia

To start selling on commission in Australia as an independent contractor, you generally need an Australian Business Number (ABN), which you can apply for free through the Australian Business Register. Most people start as a sole trader. Once you have an ABN, set up simple records and a tax savings habit, then choose a first offer that suits the people you already know.

You do not need a sales background. This guide walks you through each step, then gives you a plan for your first 30 days.

Who needs an ABN to sell on commission?

You generally need an ABN if you are carrying on a business, which includes selling as an independent contractor and being paid commission. If you are an employee paid commission through payroll, you do not need one for that job.

On Open Sales, every seller holds an ABN and is 18 or over. That is because sellers work as independent contractors, not employees. If you are unsure whether what you plan to do counts as running a business, the Australian Business Register has an entitlement checker.

How do I apply for an ABN?

Applying through the Australian Business Register is free. Some private websites charge to lodge the same form, so make sure you are on the official site.

1. Go to abr.gov.au and start an ABN application.
2. Choose your business structure. For most people starting out, that is sole trader.
3. Have your tax file number and personal details ready.
4. Describe your business activity, for example commission-based sales.
5. Submit the application. Many applications are processed quickly, but some take longer if more checks are needed.

Your ABN is linked to you, so keep it safe and use it only for your business.

What does being a sole trader mean?

A sole trader is the simplest business structure. You and the business are legally the same person. In practice, that means:

• You use your own tax file number and report business income in your individual tax return.
• You are personally responsible for the business, including any debts.
• You generally do not have to pay yourself superannuation, but you can choose to make contributions, and it is worth thinking about for retirement.
• The ATO may ask you to pay PAYG instalments during the year once you are earning business income, to spread out your tax.

business.gov.au explains the other structures, such as companies and partnerships, if you outgrow sole trading later.

Do I need to register for GST?

You must register for GST once your GST turnover reaches $75,000 a year, or you expect it to. Below that, registering is optional. Many new sellers start well under the threshold, but keep an eye on your running total, because the rule applies when you are likely to reach it, not only after you have.

If you do register, how GST applies to commission can depend on your arrangements, so it is worth checking with the ATO or an accountant.

What records should I keep, and how much tax should I set aside?

Good habits from day one save a lot of stress at tax time.

Keep simple records

• Every payment you receive, with the date and what it was for.
• Receipts for business expenses, such as a share of your phone or internet use, if they relate to earning your income.
• A note of how you worked out any business-use percentage.

The ATO generally expects records to be kept for five years. A spreadsheet or basic bookkeeping app is enough to start. On the marketplace, every payout comes with a statement of the settled sales it covers, which makes this easier. Because we pay you directly once a sale is final, you never have to write invoices.

Set tax aside every time you are paid

Nobody withholds tax from contractor commission for you. A common habit is to move a fixed share of every payment into a separate savings account as soon as it arrives, and leave it there until your tax bill is due. The right share depends on your total income, so ask an accountant or use the ATO’s resources to choose a figure that fits you.

Do I need sales experience?

No. Many good independent sellers have never had a sales job. What they do have is trust with a group of people. For example:

• Creators whose followers already ask what they use.
• Community leaders who run clubs, groups or local networks.
• Newsletter writers with readers who value their recommendations.
• Tradies who are asked by clients, suppliers and other trades what they recommend.

Selling well is mostly about understanding a product and matching it honestly to people who need it. The short training on each offer covers the product itself.

How do I choose my first offer?

Start with the people you know, not the highest commission. Ask yourself three questions:

1. Who already listens to me? Your audience or network shapes what you can sell. A tradie with a big network may suit trades and construction offers. Someone in a wellness community may suit health and beauty.
2. Would I recommend this anyway? If you have used the product or would happily use it, selling it honestly is much easier.
3. How does it pay? Check whether commission is one-time or recurring, and when a sale becomes final. Our guide to commission-only sales jobs explains these terms.

Once you have verified your ID and ABN, which takes about five minutes, you can see commission rates and the price per sale on each offer. You can browse all industries to see what is available.

What should I do in my first 30 days?

Here is a simple plan. Adjust it to suit your time.

Week 1: set up

• Apply for your ABN if you do not have one.
• Open a separate account for tax savings.
• Create your seller account, verify your details and fill in your profile.

Week 2: choose and learn

• Shortlist two or three offers that fit your network.
• Apply with a short, specific pitch about who you can reach, or join instantly where that is allowed.
• Read each agreement, then complete the training, which is usually about three modules.

Week 3: start conversations

• Share your tracked link or code with people who would genuinely benefit.
• Explain what the product does, what it costs and who it is not for.
• Note which messages and channels get a response.

Week 4: review

• Look at what worked, and drop what did not.
• Answer any customer questions quickly and accurately.
• Remember that payment arrives after each sale’s refund window closes, so early results may take a little while to appear.

Results vary, and nothing here is a promise of income. Your settled sales do, however, build a verified sales record on your public profile, which helps when you apply for future offers. For a wider view of your options, read where to find work as a salesperson.

Ready to make your first sale?

You can join the marketplace free, verify your ID and ABN in about five minutes, and browse offers matched to the people you already know. Fees are shown before you accept any terms, and payment is automatic once a sale is final. Create your seller account and choose your first offer.