In Short
- You can reactivate a cancelled ABN if you are still entitled to one and your business structure has not changed.
- If you have significantly changed your business structure, you will need to apply for a new ABN.
- Keep your ABN details up to date to avoid cancellation, and ensure you meet all tax and reporting obligations before cancelling.
Tips for Businesses
Before reactivating your ABN, check that your business structure remains the same. Use your previous ABN when applying to reactivate, and be prepared for a manual review by the ATO. Always keep your business details current to avoid unnecessary cancellations or registration issues.
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 process for reactivating your ABN is crucial. You can reactivate your cancelled ABN, provided the law otherwise permits you to do so. 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 11-digit identifier provided by the Australian Business Register (ABR) that identifies businesses. An ABN identifies the entity operating the business, which can include a sole trader, a company, or a 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 confirm that you are entitled to one. You become entitled to an ABN and must hold one if you:
- carry on business or enterprise in Australia, including as an independent contractor; or
- have a foreign business operating in Australia.
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 within 28 days to reflect any changes that have occurred. 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 to add additional business activities and make sure they accurately reflect the full range of services your business provides. The system allows you to add up to four additional business activities, in addition to your main business activity.
You cannot update these details through ABR:
- business names;
- legal names for individuals and sole traders; and
- legal names for companies registered with ASIC.
Changes to legal names will need to be made directly with the ATO or ASIC.
Continue reading this article below the formWhy Might Your ABN Be Cancelled?
You may cancel your ABN voluntarily 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.
Your ABN may be involuntarily cancelled by the ABR 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 to the ATO; or
- you lodge a final tax return.
What Happens When Your ABN is Cancelled?
You should cancel your ABN if your business has been sold, closed down or is no longer operating in Australia. Before cancelling your ABN, ensure you have fulfilled all outstanding obligations, such as finalising any outstanding income tax returns and business activity statements (BAS). Additionally, you will need to cancel any Pay as You Go (PAYG) withholding registrations linked to the cancelled ABN, as these do not cancel automatically. If any suppliers or customers invoice you by ABN, it is also important that they are notified of the cancellation.
Once your ABN has been cancelled by the ABR, you can use the ABN lookup tool to check if the status has changed from ‘active’ to ‘cancelled‘. If you plan to start trading again, it is essential to determine whether you can reactivate your existing ABN or if you need to apply for a new one.
Can I Reactivate a Cancelled ABN?
Once the ABR cancels your ABN, there are two ways to go about obtaining a live ABN. Depending on the circumstances, you can either:
- reactivate the cancelled ABN; or
- register for a new ABN.
Reinstating your ABN is possible, provided you are not subject to any restrictions that prevent you from doing so and that you are entitled to have an ABN.
For a new application, you must demonstrate that you are carrying on a business in Australia or that a foreign business is 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.
When you are ready to sell your business and begin the next chapter, it is important to understand the moving parts that will impact a successful sale.
This How to Sell Your Business Guide covers all the essential topics you need to know about selling your business.
Key Takeaways
An ABN is a unique number that:
- identifies businesses in Australia; and
- helps other businesses and entities 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 is 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 has not 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
Yes, in many cases. The ABR does not impose a strict time limit on reactivation; however, your business circumstances and structure must remain consistent with those at the time of your original registration. If these details have changed significantly, you may need to apply for a new ABN instead.
Common reasons include your business ceasing to trade, a business sale, failing to lodge a tax return when required, or a change in business structure.
Yes. If you move from a sole trader to a company structure, for example, you will need to apply for a new ABN to reflect the new entity type that you trade under. Reactivation is only available when the original entity continues to exist in the same form.
An ABN is a unique identifier issued by the government to your business. It is used for tax and administrative purposes, and is mandatory for registering for GST.
A business name is the name under which you trade. It must be registered with ASIC if it differs from your legal name or the name of your company. Multiple business names can be registered to one ABN.
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