Inactive ABNs

Inactive ABNs will be cancelled by the ATO

The ATO has recently advised that, in an effort to maintain accurate data, the Australian Business Register (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; or
  • 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 lodgments 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.

Need a second opinion on your business finances to see if you are missing out on opportunities to cut your tax bill, reduce costs, improve cash flow or make more money? Call Omnis Group in Perth on 08 9380 3555.