How to Cancel Your ABN in Australia? (Step-by-Step Guide)

How to cancel ABN is a common question for many business owners, because an Australian Business Number (ABN) is one of the most important identifiers for any business in Australia. It allows you to raise invoices, register for GST, claim GST credits, and interact with government agencies. Issued by the Australian government, this 11-digit unique number represents your business and without it, other businesses may be required to withhold tax from payments they make to you. 

Given how significant an ABN is, cancelling it is not a simple one-click process. Whether you are a sole trader or a large corporation, the steps to cancel an ABN remain the same. This blog explores the process involved in an ABN cancellation in detail along with the dos and don’ts that have been overlooked by many professionals over the years.

Why You Should Cancel Your ABN (Valid Reasons)

To begin with, let’s first analyse the reasons you want to cancel your ABN for, because just like that, cancelling a business identity is not acceptable or permitted by the Australian government. 

• If the business is permanently sold or closed, providing no goods and services.
• If you’re planning to change the business structure from a sole trader to a company, dissolve a partnership, or shift to a trust. 
• If your business is merging, splitting, or going through a major reorganisation that makes the current ABN invalid.
• If you’re taking a long break where your company won’t be involved in any activities or commercial operations for an extended period.

Thus, if any of the above reasons match your business state, you can proceed with the ABN cancellation. 

What You Must Do Before Cancelling an ABN

Now that you know the reasons for cancelling an ABN, let’s discuss the prerequisites you’ll need before starting the cancellation process. 

• Provide confirmation that your business has ceased its operations either through a final invoice, closure notice or by simply declaring the date you closed the business. 
• Lodge any pending BAS to ensure all your GST obligations are settled. 
• Settle any pending taxes and other settlements with the ATO to avoid delays in the cancellation process. 
• Finalise your PAYG withholding obligations, if any, with the ATO before proceeding with the ABN cancellation. 

Step-by-Step Guide to Cancelling an ABN in Australia

In Australia, ABN cancellation is a straightforward process where all you have to do is just follow a series of steps and get your cancellation done in no time. 

Step 1: Log in to the Australian Business Register (ABR)

Start the process by visiting the ABR website and signing in with your myGovID, which gives you access to manage your business details. 

Step 2: Locate Your ABN

Once logged in, head to the section “Update ABN.” From there locate and select the ABN that needs to be cancelled.

Step 3: Submit the Cancellation request

After selecting the particular ABN, press the option “Cancel ABN,” where you will be asked to specify the date your business officially stopped its operation, along with a declaration statement to confirm your request. 

Step 4: Wait for Confirmation

The ABR usually takes 24-48 hours to verify and complete the cancellation, after which you will be notified via email or through the postal address linked to your ABN. 

Ways to Cancel an ABN in Australia

Cancelling an ABN in Australia can be done through four different methods, depending on what’s convenient for you.

1. Online via the Australian Business Register (ABR)

Cancelling an ABN through the ABR is by far the simplest and quickest approach. All you have to do is access the ABR website, follow a few quick steps, and submit your cancellation request, which takes effect immediately upon submission. 

2. Through a Registered Tax Agent / BAS Agent

If you work with an accounting firm or a tax expert to manage your business and its numbers, then they can handle the ABN cancellation process for you. This method is valuable, especially when you have pending or unsettled lodgments to be completed before submitting the final cancellation request. 

3. Via the ATO Business Portal

If your business uses the ATO’s business portal, then you can cancel your ABN registration with the same myGovID. 

4. Through Email (Least Preferred)

If you have limited digital access or want paper-based communication, you can approach this method, where you will need to send an email stating “Application to cancel registration” form (NAT 2955) to the ATO. This method generally takes longer than completing the process online. 

What Happens After You Cancel Your ABN?

Once your ABN cancellation is processed, the first change is that your ABN becomes inactive in the Australian Business Register, signalling to other businesses and government agencies that your business is no longer operating. Following this, your GST registration is automatically cancelled, which means you can no longer claim GST credits or lodge BAS. You can also no longer quote or use the cancelled ABN for any future business activities. 

Another major consequence is that, without an active ABN on your invoices, other businesses may be required to withhold 47% from any payments they make to you as per the ATO. 

Common Mistakes to Avoid When Cancelling an ABN

In the process of ABN cancellation, there are a few aspects that are often overlooked or missed by professionals, which can result in delays or even rejection of the application.

• Forgetting to cancel other business-related registrations, including domain or business name, GST, PAYG or other licenses separately. This projects your business as active, causing renewal notices or additional fees. 
• Cancelling your ABN too early before lodging outstanding BAS, can create complications with ATO and slow down the cancellation process. 
• Providing an incorrect business closure date allows the ATO to question the accuracy of your records and request amendments to previous lodgments. 

Thus, having professional assistance can help you avoid these common mistakes and ensure a seamless ABN cancellation process. With accounting firms like Accountants Direct supporting businesses by managing their books, tracking expenses, lodging taxes on time, and maintaining ATO compliance, your ABN process will also be handled with care, allowing you to stay focused on your business priorities. 

Conclusion

Cancelling your ABN is an important decision that requires proper timing and accurate records. Whether you’re closing your business permanently or restructuring your operations, following the correct steps ensures a smooth and compliant cancellation.

If you prefer expert guidance, the team at Accountants Direct can handle everything — from BAS lodgements and tax obligations to final ABN and GST cancellation — so you can focus on your next business move.

FAQs About Cancelling an ABN in Australia

1. How do I officially cancel my ABN?

You can cancel your ABN through the Australian Business Register (ABR) using your myGovID, through the ATO Business Portal, or by asking a registered tax/BAS agent to do it for you. The fastest method is via the ABR website.

2. What happens after an ABN is cancelled?

Once cancelled, your ABN becomes inactive on the Australian Business Register, your GST registration is automatically cancelled, and businesses may be required to withhold 47% tax from payments made to you if you continue issuing invoices without an ABN.

3. Does an ABN ever expire?

An ABN does not expire automatically. It only becomes inactive if you cancel it yourself or if the ATO cancels it because your business is no longer operating.

4. How much does it cost to cancel an ABN?

There is no fee to cancel an ABN in Australia. However, delays or penalties may apply if BAS, GST, PAYG, or tax obligations are not settled before cancellation.

5. Can I still operate my business without an ABN?

You technically can—but businesses paying you may be required to withhold 47% tax from their payments. You also cannot claim GST credits, register for GST, or legally invoice clients with a cancelled ABN. If you plan to continue trading, you must reactivate or apply for a new ABN.