Dec 21, 2022
When Should I Cancel My ABN
If your business situation has changed, you might be asking yourself, ‘when should I cancel my ABN’? Here’s what you need to know and how to do it.
You’ve been running a business and using your ABN. But now your situation has changed. Maybe you’re taking time off to raise a family. Maybe you’ve taken a role as an employee? You might be asking yourself, ‘should I cancel my ABN?’
What is an ABN?
Before we dive in, what is an ABN? ABN stands for Australian Business Number. It is a unique 11-digit number that identifies your business. With it, you can issue tax invoices, pay suppliers and pay your taxes.
When Should I Cancel My ABN?
Situations change, even in business. While you’re running a business or other enterprise you’ll generally need to have an ABN. But what about when you cease to operate your business? Or what if you change your business structure? In those cases you might be right to wonder, ‘when should I cancel my ABN?’
When you must cancel your ABN
There are three situations when you must cancel your ABN:
- If your business has been sold.
- If your business has closed down.
- If your business is no longer operating in Australia (or making supplies connected with Australia).
In each of these cases, your business has essentially ceased to exist, and so you are required to cancel your ABN as well. But what about the situation where your business structure has changed?
When you may be required to cancel your ABN
If you change your business structure, then you may need to cancel your ABN and apply for a new one. This won’t happen in every case, but it will in the following situations:
- Sole trader to partnership
- Sole trader to company
- Partnership to company
If you’re considering changing your business structure, speak to one of our experts before making any changes to your ABN. Any changes could impact your business, your clients and your tax and business obligations.
Timeframe for cancelling your ABN
If you do need to cancel or change your ABN, you must do so within 28 days of your business operations ceasing (or from the date of the relevant change).
What are the impacts if you cancel your ABN?
Cancelling your ABN is important if your business is no longer operating. Not only is it a regulatory requirement, but once you cancel your ABN you also cancel your taxation registrations (such as GST and fuel tax credits). You certainly don’t want to be managing those requirements for a business that is no longer yours or in operation!
How to Cancel Your ABN
You can cancel your ABN through the government portal at myGovID.
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