They will advise you or your tax agent if your ABN has been identified for cancellation and what actions are needed to keep the ABN active if you are still entitled. Regularly reviewing potentially inactive ABNs helps the ATO maintain the data integrity of the Australian Business Register (ABR).
The cancellation program aims to identify and cancel ABNs where the ABN is not actively in use. The ATO will also cancel your ABN if Australian Securities and Investments Commission (ASIC) advise your company is deregistered.
Your ABN may be selected for review and cancelled if:
- you have not reported business income
- your lodgements are not up to date, indicating that the business is no longer operating
- you advise that you have stopped business in your latest income tax return
- you lodge a final tax return.
WHAT YOU NEED TO DO
If the ATO intend to cancel your ABN, they will contact you by letter, email, or SMS and to stop your ABN being cancelled you just need to follow the instructions in the communication to you.
If the ATO contact you and you are no longer operating your business, you do not need to do anything. They will cancel your ABN. The ATO will never ask you to provide confidential details in their communications with you.
ABN ENTITLEMENT CHECKS
The ATO conduct reviews on a regular basis to confirm businesses are entitled to an ABN. These entitlement checks are random and may happen when you apply or after your ABN has been issued.
You may be selected for an ABN entitlement review if:
- there are indicators on your tax return, other lodgements, or other third-party information that indicate you are no longer operating a business; and
- you’ve reapplied for an ABN after we've refused or cancelled it.
IF YOU’RE SELECTED FOR REVIEW
The ATO will contact you and ask you to provide information to confirm your entitlement to an ABN.
You will need to provide evidence that you are operating your business or have started your enterprise from the date provided in your application. This includes evidence that you have undertaken some of the following activities:
- advertising and setting up a social media account or a website for the business;
- purchasing business cards or stationery for the business;
- obtaining business licences or insurance to operate (such as public liability and professional indemnity);
- leasing or purchasing premises, equipment, or stock for the business;
- issuing quotes or bidding for work;
- consulting with financial, business or tax advisers;
- applying for finance; and
- buying a business.
The ATO will let you know the outcome of the review, and your rights if you are not satisfied with their decision.
ABN HAS BEEN CANCELLED OR REFUSED
If the ATO has cancelled or refused your ABN and you do not agree with their decision, you can:
- reapply online; or
- lodge an objection.
- If your self-managed super fund ABN has been cancelled, you can phone the ATO on 13 10 20 to find out whether it can be reinstated or if you require a new ABN.
It is an offence to quote an ABN that is not your own, or to use your ABN when it has been cancelled.