When it comes to inactive ABNs, the Australian Taxation Office (ATO) is strict in making sure that all registered business owners have a valid and active ABN. An ABN is considered inactive if the business owner has not reported any business activity in their tax return or if there are no signs of business activity in other lodgments or third-party information.
In such cases, the ATO will send a notification to the business owner via email, letter, or SMS. If the business owner still requires their ABN, the ATO will explain the steps they need to take in order to keep it. On the other hand, if the business owner is no longer in business, no action is required and the ATO will proceed to cancel the ABN.
In the event that an ABN has been cancelled and the business owner is still entitled to it, they will need to reapply for the same ABN. However, this is only possible if their business structure has not changed. For example, if they were previously a sole trader and are now operating their business through a company, they will need to reapply for a new ABN.
As an ABN holder, it is important to keep your business details up to date and inform the ATO of any changes within 28 days of the change. This includes cancelling your ABN if your business is no longer operating. Your tax advisor or BAS agent can give you further advice on how to keep your ABN active and up-to-date.
In conclusion, inactive ABNs are taken seriously by the ATO and it is important for business owners to take the necessary steps in order to keep their ABN active and valid. By keeping their business details up to date and informing the ATO of any changes, business owners can avoid the inconvenience of having their ABN cancelled and having to reapply for a new one.