Four phrasings of one question: do I need an ABN to sell STCs, is an ABN required for a trader account, can I sell without one, and can an individual sell. The answers depend on whether you are a business or a household.
This is general information at the time of writing, not tax advice.
Installers and businesses
If you install solar, batteries or hot water and sell the STCs you collect, you are carrying on an enterprise. That means:
- Traders will ask for your ABN when you open an account, and match it to your legal name and bank details.
- You need an ABN to register for GST, and to be paid under an RCTI arrangement. See RCTIs for STC sales.
- Under the tax law, a business that supplies goods or services without quoting an ABN can have tax withheld from the payment at the top marginal rate. At the time of writing that is 47 percent. The withholding can be claimed back through your tax return, but it hurts your cash flow.
In practice, a trader will not settle an unregistered business, because it cannot issue a valid RCTI or meet its own tax obligations.
Selling STCs without an ABN
For a business, not really. You can lodge a claim, but getting paid reliably needs an ABN. If you are starting out, apply for the ABN first. It is free through the Australian Business Register and often approved the same day. If you are weighing structure, such as sole trader versus company, speak to your accountant, because it also affects GST registration and the way your trader sees you.
Individuals and homeowners
A homeowner who owns a small-scale system can create and sell STCs on their own. If they are not carrying on a business, they are not required to have an ABN for that sale. The household assigning STCs to an installer in exchange for a discount is the usual path. See selling your own STCs and whether it is worth self-registering.
An individual who regularly sells STCs from other people’s systems is starting to look like a business, and the answer changes.
What the trader checks
When you open an account, expect to confirm:
- ABN, active and matching your legal or trading name
- GST registration status
- bank account in the same name
- CEC accreditation details, where relevant
What this means for installers
Have the ABN, GST status and bank details sorted before your first claim. That keeps the first settlement clean. New partners at Energy Merchants clear their first claim in 48 to 72 hours while the desk verifies these details, then move to 24-hour settlement. See start trading and the guide to ABN and bank detail checks.