The Australian Business Register (ABR) may cancel your Australian Business Number (ABN) for a number of reasons. One such reason would be if you were to close your business and stop trading. As a business owner, you may wish to reopen your business and start trading again, so understanding the ABN reactivation process is important. You can reactivate your cancelled ABN so long as the law otherwise entitles you to have one. This article will explain:
- what an ABN is;
- when you need to update your ABN;
- why your ABN might be cancelled;
- what happens when your ABN is cancelled; and
- when you can reactivate a cancelled ABN.
What is an ABN?
An ABN is a unique number provided by the Australian Business Register (ABR) used to identify businesses. An ABN identifies the entity operating the business, which can include a sole trader, company or trust, among others. The ABR maintains a comprehensive database of registered business information. Customers, other businesses and government bodies can use the database to identify you and your business.
You can apply for an ABN online through the ABR website. If you want to register for an ABN, you must first be entitled to one. You will be entitled to an ABN and must have one if you:
- carry on business or enterprise in Australia, including as an independent contractor; or
- have a foreign business operating in Australia.
If you operate your business through a company, your Australian Company Number (ACN) will be slightly different to your ABN. An ACN is a unique 9-digit identifier the Australian Securities and Investments Commission (ASIC) gives to companies upon incorporation. Your ABN is an 11-digit number with 2 unique numbers at the beginning of your ACN.
Updating Your ABN Details
Once you have an ABN, it is your responsibility to keep your ABN details up to date on the ABR. Therefore, you must update the ABR of any changes within 28 days. You will need to update any changes to your:
- business owner details;
- physical address;
- email address;
- phone number; and
- GST registration status.
You can update your ABN details through the ABR website or by contacting the ABR via email or mail.
Continue reading this article below the formWhy Might Your ABN Be Cancelled?
You may cancel your ABN if:
- you have sold your business;
- your business has closed down and stopped trading;
- you are a foreign business and are no longer operating in Australia or making supply connections with Australia; or
- your business structure is changing.
If you stop trading, you will need to cancel your ABN within 28 days from the date you stop operations. You can cancel your ABN online through the ABR website. Before cancelling your ABN, you must ensure that you meet any lodgement, reporting and payment requirements with the ABR or other government agencies.
The ABR may cancel your ABN if:
- you operate your business through a company and ASIC advises the ABR that the company has been deregistered;
- your latest income tax return advised that business has ceased;
- you stop reporting business income or expenses; or
- you lodge a final tax return.
What Happens When Your ABN is Cancelled?
Once the ABR cancels your ABN, you can use the ABN lookup tool to check if the status has changed from ‘active’ to ‘cancelled‘. You will need to ensure that you have adhered to any outstanding obligations. Also, you will need to cancel any Goods and Services Tax (GST) and Pay as you Go Withholding (PAYG) registrations linked to the cancelled ABN, as these do not cancel automatically. You should also lodge any outstanding income tax reports or business activity statements.
Can I Reactivate a Cancelled ABN?
Once the ABR cancels your ABN, there are two ways to go about obtaining a live ABN. In this situation, you will need to know if you can reactivate the cancelled ABN or if you will need to register for a new ABN. Reinstating your ABN is possible, provided you are not subject to any restrictions that prevent you from doing so.
You can reactivate your cancelled ABN so long as you are entitled to have one. As for a new application, you must show that you are carrying on a business in Australia or you have a foreign business conducting business in Australia. When reactivating a cancelled ABN, you must reapply for the ABN through the ABR. You can list your previous ABN during the application for a new ABN.
Reactivating a cancelled ABN requires no fee. However, you may incur a fee if you need to re-register your business name. Sometimes the ATO will conduct a manual review when you reactivate a cancelled ABN. This manual review will determine your eligibility and entitlement for an ABN.
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Key Takeaways
An ABN is a unique number that:
- identifies businesses in Australia; and
- helps other businesses ensure they are dealing with the correct entity.
Selling your business or stopping trading in Australia will lead to your ABN being cancelled by you or the ABR. It’s also possible to reactivate a cancelled ABN so long as you meet the ABR’s requirements, including that you still operate a business and the structure hasn’t changed.
If you require assistance with registering or reactivating an ABN, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
In some circumstances you can, provided you are entitled to have one in the first place.
Common reasons include your business ceasing to trade, a business sale, or a change in business structure.
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