In this series of posts we review a range of common questions we receive regarding ABN reactivation. Find out why your ABN has been cancelled.
Why was my ABN cancelled?
The Australian Business Review (ABR) is responsible for reviewing ABNs. When it appears you are not running an enterprise, your ABN may be cancelled.
If you are looking to register an ABN or renew a cancelled ABN, with LawPath you can reactivate your ABN.
How do I show that I am carrying out an enterprise?
Certain activities clearly indicate that you are running a business; such conduct entitles you to retain your ABN:
- If you’re starting a business, ask yourself, ‘have I taken clear steps towards that goal’? Examples include financial planning, licensing and insurance agreements, purchase of stock.
- Once your enterprise is set up, it should be run like a business! Is there profit incentive? Are you engaged in commercial activity such as selling products or services? Do you keep organised records and operate in a regular and consistent manner?
- Establish that you are in control; if it looks like you are in an employee relationship with another person or entity that controls you and your pay, you may not be truly carrying out an enterprise.
- When filling out your income tax return, don’t forget to declare income at the business labels.
- If you are registered for GST, you should be lodging business activity statements (BAS).
- Don’t forget to update or cancel your ABN to reflect changes in your enterprise.
Failure of one or more of these may be the reason behind your ABN cancellation. The ABR should send you a letter explaining why it has been cancelled; otherwise, you can check the ABN Lookup to make sure.
The good news is, you can re-apply for an ABN, but you may need to make some changes to your business activity. For more information, you can read our guide How to Reactivate Your ABN.
Want to reactivate your ABN? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.