1. Lodgement and payment
Make sure all lodgement and payment obligations are met, including:
• outstanding activity statements;
• outstanding instalment notices;
• final fringe benefits tax (FBT) returns; and
• final income tax returns.
2. Refunds
Request any refunds for accounts with a final tax position in credit.
3. Cancel pay as you go (PAYG) withholding registration
4. Cancel the ABN
This step must be completed after the first three steps as this will stop any problems with refunds being delayed and the need for the ATO to contact you.
You need to cancel the ABN within 28 days of ceasing business. The fastest way to cancel an ABN is through the Australian Business Register (ABR). Cancelling the ABN will cancel registrations for GST, luxury car tax (LCT), wine equalisation tax (WET), fuel tax credits (FTC) and AUSkeys linked to the ABN.
You will still need to keep business records for at least five years after the end of the financial year that you sell or close down their business.