The ATO cancellation program aims to identify and cancel ABNs where they confident the ABN is not actively in use.
Your ABN may be selected for review and cancelled if:
- you haven’t reported business income
- your lodgments aren’t up to date, indicating that the business is no longer operating
- you advise that you have stopped business in your latest income tax return
- you lodge a final tax return.
What you need to do
The ATO will contact you by letter, email or SMS.
If the ATO contact you and you’re no longer operating your business, you don’t need to do anything. We’ll cancel your ABN.
To stop your ABN being cancelled you need to follow the instructions in the communication to you.
If the ATO has cancelled or refused your ABN and you don’t agree with the decision, you can:
- reapply online
- lodge an objection.
If your self-managed super fund ABN has been cancelled, you can phone the ATO on 13 10 20 to find out whether it can be reinstated or if you require a new ABN.
It’s an offence to quote an ABN that isn’t your own, or to use your ABN when it has been cancelled.
Please note, the ATO never ask you to provide confidential details in the communications.
ABN entitlement checks
The ATO conducts reviews on a regular basis to confirm businesses are entitled to an ABN. These entitlement checks are random and may happen when you apply or after your ABN has been issued.
You may be selected for an ABN entitlement review if:
- there are indicators on your tax return, other lodgments, or other third-party information that indicate you are no longer operating a business
- you’ve reapplied for an ABN after The ATO has refused or cancelled it.
If you’re selected for review
You’ll need to provide evidence that you’re operating your business or have started your enterprise from the date provided in your application. This includes evidence that you’ve undertaken some of the following activities:
- advertising and setting up a social media account or a website for the business
purchasing business cards or stationery for the business
- obtaining business licences or insurance to operate (such as public liability and professional indemnity)
- leasing or purchasing premises, equipment or stock for the business
- issuing quotes or bidding for work
- consulting with financial, business or tax advisers
- applying for finance
- buying a business.
