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Inactive ABNs will be cancelled by the ATO

- Thursday, April 05, 2018

The ATO has recently advised that, in an effort to maintain accurate data, the Australian Business Register (or ‘ABR’) periodically checks its records for Australian Business Numbers (‘ABNs’) and automatically cancels those that appear inactive.

Ultimately, a taxpayer’s ABN may be cancelled if they: 

  • Have told the ATO they stopped their business activity. 
  • Declared no business income in the last two years.
  • Have not lodged a BAS or an income tax return in more than two years. 
To avoid cancellation, the ATO has reminded taxpayers that they need to bring their lodgements up to date, and have reminded sole traders that, regardless of their income, they need to lodge the individual tax return with the supplementary section, as well as the business and professional items schedule.

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