There’s a multitude of reasons why it might be time for you to cancel your Australian Business Number (ABN). Some of these reasons can be altering your business structure, if you will no longer be running your business in Australia, or if you want to close your business. There are various ways you can cancel your ABN but which one will work best for you? In this post, each way you can cancel your ABN and what occurs next is explained. Still, there are things you need to do before cancelling your ABN. Otherwise, you may have the Australian Business Register (ABR) seeking to get into contact with you. In addition, you might want to cancel your ABN for incorrect reasons. Here, you will also find a list of points to consider before cancelling.

Can I cancel my ABN?

Yes, it is possible to cancel your ABN. Exactly like applying for an ABN, cancelling your ABN is quite easy, but there are a few important things you must take note of before you start the process. Not only you are required to check if you need to cancel your ABN, but you also need to be conscious of any other obligations which are necessary to be fulfilled before you can do so.

Many people who run a home-based small business may have a devoted space in which they do business activities in an endeavour to decrease business expenses and upgrade their work-life balance. Many different types of small businesses could be operated out of a home office, from e-commerce operations to some trades, making it a pliable option that has the potential to fit a variety of people.

Before you cancel your ABN…

Although the reasons for cancelling an ABN differ, it’s necessary to discern why, and whether cancellation is essential. If you are closing the doors to your business for good or selling the business, cancellation is the best choice. However, there are cases where it might seem like the best choice, but it isn’t inevitably the case.

Example:

You have determined that it’s time to reorganize your business as a company. You also want to trade under a different name than your present business. In this case, registering a company needs an ABN and you can select the company name during registration. It is not essential in this case to cancel your ABN.

Do I need to cancel my ABN?

Before cancelling your ABN, it’s a good idea to verify whether cancellation is the best decision for you. Some situations in which you should think of cancelling your ABN include:

• When your business has been sold
• When your business has shut down or is no longer operating
• When your business is no longer functioning in Australia

Whereas there are many situations where it is the right option, there are some situations where you may not require to follow a cancellation. If you’re trying to change your business name, for example, cancelling your present ABN is not needed. If you’re not confident whether you should cancel your ABN or not, it’s best to get in contact with the Australian Business Register (ABR) for advice.

Before cancelling your ABN, a business will need to meet the following:

• Any lodgments
• All reporting and payment obligations with government agencies
• If applicable, cancel your pay-as-you-go (PAYG) withholding registrations
• If you still have PAYG instalment obligations when you cancel your ABN, talk to your tax agent. Your tax agent can change the PAYG instalment amount to show your present circumstances.
• A successful cancellation of your ABN will lead to your tax registration for GST being cancelled. In addition, registrations for the luxury car tax, wine equalization tax, and fuel tax credits will be cancelled.
• Additionally, any sanctioned relationships between your myGovID and your ABN will be cancelled as well as any AUSkeys connected to your ABN.

Cancelling your ABN

The fastest method to cancel an ABN is online by using the online myGovID service. If you choose myGovID to cancel your ABN, the changes will occur immediately. However, your ABN requires to be already connected to your myGovID to employ this method. If you have altered your ABN details in the last 12 months, you would have already conducted so. Otherwise, you can speak to a taxation lawyer who can guide you.

Besides, it is probable to cancel an ABN over the phone by contacting the Australian Business Register on 13 92 26. The individual requires to be allowed to update ABN details on behalf of the business to make the request. In addition, proof of your identity may be needed. Alternatively, you can lodge a form to cancel your ABN. Still, this can take a great amount of time longer than utilizing myGovID. Ultimately, a registered tax agent or BAS agent can cancel your ABN.

Can I reactivate my ABN?

If your circumstances alter and you want to resume your business, it is probable to reactivate your cancelled ABN. To reactivate your ABN, you will need to complete an application process identical to applying for a new ABN.

The ATO regularly checks ABNs for inactivity to ensure that the information available on the Australian Business Register is right. The ABR’s information is utilized in the case of natural events by emergency services and government agencies and to recognize where financial disaster relief is required to help businesses. In the event that there are defunct or inactive ABNs in the ABR, they may wrongly receive funds that they are not really qualified to receive.