Every year, numerous Australian businesses face the challenging decision of whether to cancel their Australian Business Number (ABN). This decision can stem from various factors, including financial difficulties, regulatory non-compliance, or strategic business pivots.

Therefore, the ATO understands that people do not always remember to cancel their ABNs when they no longer need them. That is why the ATO regularly reviews, and sometimes cancels, inactive ABNs.

The ATO may review a taxpayer's ABN if the taxpayer has not reported business activity in their tax return, or there are no signs of business activity in other lodgments or third-party information.

If the ATO thinks a taxpayer is no longer using their ABN, it will contact them by email, letter or SMS. If the taxpayer is:

•        still running a business, the ATO will tell them what they need to do to keep their ABN; or

•        no longer in business, they do not need to do anything — the ATO will cancel their ABN.

Taxpayers who think they are still entitled to an ABN that has been cancelled need to reapply for it.

Taxpayers who restart their business activities may be able to reapply for the same ABN, depending on whether their business structure changes.

Ref: ATO website, Small Business Newsroom, 12 June 2024

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