Are you wondering how do I cancel my ABN? Before you cancel your ABN (Australian Business Number), you must finalise your reporting, lodging and payment requirements.
It is the responsibility of the person (if a sole trader) or business named on the ABN register to update details on the ABN register in a timely manner after a change has occurred. If your business structure has changed or your business is no longer trading, then you should cancel your ABN within 21 days in line with Australian Taxation Office (ATO) timing requirements.
What happens when I cancel my ABN?
When an ABN is cancelled, it cancels the following registrations automatically:
- Goods and Services Tax;
- Luxury Car Tax;
- Wine Equalisation Tax;
- Fuel Tax Credits; and
- AusKeys linked to the particular ABN.
How can I cancel my ABN?
There are currently four ways that you can cancel your ABN:
- By going online to the Australian Business Register;
- Calling the Australian Business Register;
- Lodging an application form;
- Through your own registered Tax Agent or BAS agent.
Who else can cancel my ABN?
The ATO has the power to cancel ABNs. Some of the reasons the ATO may choose to cancel an ABN are listed below:
Any ABN that has had no actions recorded against it within the last two years will be classified as inactive and will be cancelled.
2. Hobby v Enterprise
The ATO can cancel an ABN if they believe a person is running a business as a hobby rather than to run it to make money.
3. Lack of Profitability
If the business that is linked to an ABN is not making any profit, the ATO has the option to cancel the ABN due to a suspicion that it is no longer running as a business.
4. Violations of the law
5. Mistakenly issued ABN
Can I reactivate my ABN?
You cannot reactive a cancelled ABN. If you require a new ABN, you would need to reapply for another ABN to use.