Setting up your ABN and insurance: what actually changes once you go subby

Setting up your ABN and insurance is one of the first real lines you cross when you move into subby life. It sounds serious, and it is, but it’s not complicated if you understand what’s actually changing. Most tradies can get this sorted in under an hour. The problem isn’t the process. It’s not realising what responsibility lands on you once you stop being an employee.

Before you go subby, get the paperwork sorted.

An Australian Business Number is what turns you from an employee into a business in the eyes of the ATO. With an ABN, you can invoice, claim deductions and work as an independent contractor or sole trader. Without one, you’re still operating as an employee, no matter how it feels on site.

Applying for an ABN itself is straightforward. What trips new subbies up is what comes after. Once that ABN is active, you’re responsible for understanding your tax position and how super applies to the way you work. The rules don’t disappear just because you’re invoicing instead of getting a payslip.

The super trap most subbies don’t see coming

This is where a lot of tradies get caught out. Having an ABN does not automatically mean super is off the table.

Under Superannuation Guarantee rules, a contractor may still be entitled to super if they’re paid mainly for their labour, perform the work personally, and don’t employ others or subcontract the job out. In practical terms, if you turn up with your skills, invoice as a sole trader and do the work yourself, the ATO may still view you as eligible for super contributions, even with an ABN.

Once you start supplying materials, running a full service, operating through a company structure, or bringing on staff or subcontractors, super generally becomes your responsibility. If you’re unsure where you sit, it’s worth checking properly before assumptions turn into problems. Here you can go through the ATO contractor super checker and get clarity based on how you actually work.

Applying for your ABN the right way

Applying for an ABN should always be done through the official government website. It’s free, and in many cases approval is instant or only takes a few days. If you want to do it properly, here you can go directly through the process on the official ABN page.

The biggest mistake tradies make here is using third party sites that charge fees for something you can do yourself. If you’re not on a government domain, you’re on the wrong site.

Getting your insurance sorted early

Once your ABN is active, insurance isn’t optional. It’s what protects you, your work and your income when something goes sideways.

Most tradies need public liability cover, insurance for tools or equipment, and some form of income protection. Many use specialist brokers, industry bodies or tradie-focused platforms to compare options without overcomplicating things. If you want a starting point, here you can look at tradie-specific cover through platforms like BizCover.

The key isn’t finding the perfect policy on day one. It’s getting cover in place early. One injury or claim without insurance can wipe out months or years of work.

Stepping into subcontracting is a big move. Setting up your ABN and insurance properly is what lays the groundwork. Do it once, do it right, and you give yourself room to grow without taking on risk you didn’t sign up for.