Whether you’re closing your business, switching to a new structure, or ceasing operations altogether, there may come a time when you need to cancel an ABN (Australian Business Number). Cancelling your ABN correctly is crucial to remain compliant with the Australian Taxation Office (ATO) and avoid future penalties or reporting obligations.

In this article, we’ll walk you through when and how to cancel an ABN, what happens next, and how to manage your business name and tax obligations when you close a business.

What Is an ABN?

An Australian Business Number (ABN) is an 11-digit identifier issued by the ATO when you register a business. It allows businesses to:

  • Invoice customers and receive payments
  • Register for GST
  • Lodge BAS statements
  • Operate legally in Australia under a business or trading name

If you’re no longer conducting business activities, the ATO requires that your ABN be cancelled.

When Should You Cancel an ABN?

You should cancel your ABN when:

  • Your business has ceased trading permanently
  • You’re retiring or leaving the business
  • You’re changing your business structure (e.g. sole trader to company)
  • Your company is being closed or deregistered

If you no longer need an ABN but continue using it, you may still be subject to ATO obligations such as tax returns or BAS lodgement—even if you made no income.

How to Cancel an ABN

The easiest way to cancel an ABN is online through the Australian Business Register (ABR). Here’s a step-by-step guide:

  1. Go to the official ABR website at abr.gov.au
  2. Log in using your myGovID (linked via the Relationship Authorisation Manager)
  3. Select the business entity you wish to cancel
  4. Follow the prompts to submit the cancellation request
  5. Receive confirmation of cancellation

Alternatively, your registered tax agent can cancel your ABN on your behalf.

What Happens After Cancelling an ABN?

After your ABN is cancelled:

  • You can no longer legally operate or invoice as a business
  • You must stop using your business name in trading unless it’s registered under another entity
  • You may need to finalise and lodge any final tax returns or BAS statements
  • Business name and company details must be updated or deregistered with ASIC, if applicable

If you plan to reopen your business later, you’ll need to apply for a new ABN.

Don’t Forget to Update Business Name Registrations

Many people forget that cancelling an ABN doesn’t automatically cancel or update your business name registration. You’ll need to contact ASIC separately if you wish to cancel or transfer your registered business name.

Want to transfer or update your business name? Click here for help from Taxopia.

Changing Your Business Structure?

If you’re switching from a sole trader to a company or partnership, you must cancel your existing ABN and apply for a new one under the new structure. The old ABN cannot be reused or transferred.

For example: If John Smith is trading as “Smith Plumbing” as a sole trader and decides to register “Smith Plumbing Pty Ltd” as a company, a new ABN must be registered for the company structure.

Register your new company with Taxopia

FAQs About Cancelling an ABN

  • Can I reactivate a cancelled ABN? — No. You must apply for a new ABN if you resume business.
  • How long does it take to cancel an ABN? — Usually instant when completed online, but processing may take up to 28 days.
  • Do I need to cancel a company ABN? — Yes, if the company is ceasing trade. You must also deregister the company with ASIC.

Final Thoughts: Close Your Business the Right Way

Knowing how to cancel an ABN is essential for business owners who are exiting or restructuring. Doing it properly avoids ATO issues, future tax obligations, and legal risks. Whether you’re stepping away from business or switching to a company model, it pays to handle your exit formally and cleanly.

Need help transitioning to a new structure or updating your registrations? Taxopia offers expert support for business names, company setups, and ABN-related changes.