How to Close a Business for Tax Purposes in Australia

Closing a business involves more than just stopping trade—it requires formal steps to notify the ATO and finalise your tax obligations. Here’s how to wrap things up properly and avoid future liabilities.

1. Cancel Your Australian Business Number (ABN)

Cancel your ABN within 28 days of ceasing business operations. This notifies government bodies your business is no longer active.

Cancel your ABN through the Australian Business Register.

2. Lodge Final BAS and Tax Returns

Ensure you lodge all outstanding Business Activity Statements (BAS), tax returns, and PAYG instalments. This includes:

Final income tax return
Last BAS (for GST-registered businesses)
PAYG withholding summaries for employees

3. Cancel GST and Other Registrations

When cancelling your ABN, also cancel your GST, PAYG withholding, and any other tax registrations like FBT.

4. Finalise Employee Obligations

If you have staff, issue final payslips, ensure super contributions are made, and report final employee summaries to the ATO.

5. Settle Debts and Retain Records

Pay off any outstanding business debts and retain records for at least five years—even after your business is closed.

6. Close Bank Accounts and Cancel Licences

Shut down your business bank accounts and cancel any industry or local licences no longer needed.

7. Seek Professional Advice

Closing a business can be complex. Consult a tax agent or accountant to ensure all legal and tax obligations are met correctly.

Reference

For official ATO guidance, visit the ATO’s business closure page.

How to Close a Business for Tax Purposes in Australia