You’ve stopped trading, sent your final invoices, and you’re ready to close the business. But your Australian Business Number (ABN) is still active, and you’re not sure where to start.
You may still have final tax lodgements to make, GST obligations to deal with, or business records to retain. If you’ve never closed a business before, it’s not always clear which of these to deal with first.
That’s why Australian Business Magazine put this walkthrough together for Australian business owners closing up shop. We’ll cover what to sort out before cancellation, how to cancel your ABN step by step, and how long to keep your records afterwards.
Let’s get into it.
Does Cancelling Your ABN Delete Your Business Records?
No, it doesn’t. Cancelling your ABN removes it from the Australian Business Register, but your business records stay exactly where you left them. The register is a public-facing directory with no access to your files, invoices, or financial documents.
Cancellation also doesn’t close your other registrations. That includes your business name, company, or trust structure, which each sit outside the ABN system and need to be dealt with separately. If you registered a business name through ASIC, for example, it remains active until you cancel it directly.
Cancelling your ABN doesn’t clear any outstanding tax obligations either. You still need to settle any debts or complete any required lodgements with the Australian Taxation Office (ATO) after you stop trading.
Sort These Out Before You Cancel Your ABN
Before cancelling your ABN, make sure you’ve addressed the tax, payroll, and business tasks that still need attention. Since closing down doesn’t automatically settle everything connected to your business, it’s worth checking that your final requirements are covered first. Here are the main areas to review:
- Lodge Your Final BAS: If you’re registered for GST, you’ll need to lodge a final business activity statement (BAS) when you close. This reports your final GST amounts, including anything you still owe or are due to receive.
- Settle What You Owe: Pay any outstanding tax debts, wages owed to employees, or other amounts your business still owes.
- Check Your Other Tax Obligations: You may have other tax obligations to deal with before you close, such as Pay As You Go (PAYG) withholding if you have employees. So make sure you’ve dealt with any required reports or payments before you submit the cancellation request.
- Sort Your Business Name: If you’re no longer trading under your registered business name, check whether you need to cancel it or transfer it to someone else. That way you’re not paying renewal fees on a registration you no longer use.
When we speak to business owners closing up shop, the final BAS is one of the things they most often overlook. It’s easy to overlook when closing a business, but an unfinished final BAS can mean another follow-up with the ATO.
If you’re not sure what you still need to lodge or pay, a registered tax agent can help you check everything is in order before you submit the cancellation.
How to Cancel Your ABN: Step-by-Step
Once you’ve sorted your final obligations, you can cancel your ABN online through the Australian Business Register (ABR). Follow these steps to complete the process:
Step 1: Log In to the ABR
Go to abr.gov.au and log in using your myGovID digital ID. If you haven’t set one up, you’ll need to create one through the myGovID app first.
Step 2: Update Your ABN Details
Once you’re in, select “Update ABN details” and choose the option to cancel your ABN. This is where you’ll submit your cancellation request.
Step 3: Enter Your Closing Date
Enter the date your business stopped trading when asked for your cessation date. Don’t automatically use today’s date if you stopped operating earlier.
Step 4: Confirm the Cancellation
Review your ABN details one more time, then confirm the cancellation. Cancelling your ABN will also cancel your GST and PAYG withholding registrations.
What Happens to Your Records and Obligations After Cancelling
As we’ve made clear, cancelling your ABN doesn’t mean you can put all your business paperwork in the bin. Some records still need to be kept after you stop trading, and the retention period depends on the type of record. Three in particular are worth knowing about.
Tax and Financial Records
You generally need to keep most business and financial records for five years, according to the ATO. This includes income records, expense receipts, bank statements, tax invoices, and documents used to prepare your tax returns.
Business assets have different retention rules. You need records for depreciating and capital gains tax assets while you own them and for five years after you sell or dispose of them. GST, fuel tax credits, luxury car tax, and wine equalisation tax records follow the same five-year rule.
Employee and Contractor Records
If you had employees, you still need to keep their employment records after they leave. Under the Fair Work Act, employers must keep time and wages records for seven years. That includes pay rates, hours worked, leave balances, and termination details.
However, the seven-year Fair Work requirement doesn’t apply to contractors. Their invoices and payment records usually fall under the ATO’s five-year retention period.
GST and BAS Records
If you were registered for GST, don’t throw out your GST paperwork just because you’ve cancelled the registration. You generally need to keep these records for five years from when the transaction was completed or the record was obtained.
That includes BAS lodgements, tax invoices, and the documents you used to prepare them. Digital copies are fine too, as long as you can retrieve them if the ATO asks.
Do You Need a New ABN If You Start Trading Again?
If you start trading again, you’ll need to re-apply for an ABN through the Australian Business Register. There’s no fee to apply, and if your business structure hasn’t changed, you may receive your original ABN again.
That said, your GST registration doesn’t reinstate automatically. You’ll need to register again separately if you’re required to. You can check the status of any past ABN using the ABN Lookup tool at abr.gov.au.
A Clean ABN Closure Starts With Good Records
Cancelling your ABN is the easy part. The real work is dealing with your final BAS and other requirements, and storing your business records safely for the required retention period. Once that’s done, you can close the business knowing you’ve dealt with the parts that continue beyond the ABN itself.
If you’re looking for more practical guidance on closing or restarting a business in Australia, visit Australian Business Magazine. You’ll find guidance on the tax, staff and financial issues that come with it.
Frequently Asked Questions
Even after you’ve worked through the cancellation process, you might still have a few practical questions. Here are answers to some of the most common ones.
What happens to my ABN status after cancellation?
Once your cancellation is processed, your ABN status changes to cancelled on the Australian Business Register. The register also shows the cancellation date, so anyone looking up your ABN can see that it is no longer active.
Do I need to cancel my GST registration separately?
No. When you cancel your ABN, your GST registration is generally cancelled at the same time. Check your details on the Australian Business Register after cancellation if you want to confirm that your registration status has been updated.
Is the cancellation process different for sole traders?
No. Sole traders follow the same ABN cancellation process as other business structures. The main difference is that a sole trader’s ABN is tied directly to the individual rather than a separate legal entity.
