The ATO is reviewing Australian business numbers (ABNs) to identify potentially inactive ABNs for cancellation.
We’ve made improvements to the ABN cancellation program by introducing a new automated process that allows you to confirm if an ABN is still required via a secure voice response system.
An ABN may be selected if it has not reported business activity in a tax return, or there are no signs of business activity in other lodgments or third-party information.
Any income earned under an ABN needs to be reported in your tax return, regardless of the amount. By keeping your tax obligations up to date the ATO can see you are actively undertaking a business, therefore the ABN should not be cancelled.
If the ATO believes you are no longer carrying on an enterprise, they may contact you or your accountant to advise of their intention to cancel the ABN.
- If your ABN is identified for cancellation you may be contacted and advised what actions you need to take to prevent your ABN from being cancelled
- If you are no longer in business, no action is required to be taken
- If your ABN has been cancelled and you are still entitled to one, you will need to re-apply to reactivate it.