ABN Cancellations: What to Do If You Receive a Notice

The ATO has the power to cancel an ABN under several circumstances, set out in the Income Tax Assessment Act 1997 and the A New Tax System (Australian Business Number) Act 1999.

The most common triggers are:

  • The business has ceased operating
  • Prolonged failure to lodge tax returns or activity statements
  • Outdated details on the Australian Business Register (ABR), meaning the ATO can’t make contact
  • A change in entity structure (e.g. sole trader to company) requiring a new ABN rather than an update
  • A voluntary cancellation request
  • An ABN issued incorrectly or fraudulently

How the cancellation process works

  1. Issue identified – usually via data matching against tax returns, BAS, Single Touch Payroll or ASIC records
  2. Contact attempt – the ATO writes to the address on the ABR
  3. Notice of intended cancellation – published in the Government Gazette and sent directly to you — this is your formal warning
  4. Objection period – typically 28 days to respond
  5. Final decision – if there’s no response, or the response isn’t sufficient, the ABN is cancelled
  6. Cancellation takes effect – the ABN is removed from the ABR and may be re-released

Importantly, if your ABR details are out of date, you may never see the ATO’s initial letters,  meaning the process can proceed without you realising until the formal notice arrives.

If you receive a Notice of Intended Cancellation

Contact us as soon as you receive this notice. The 28-day objection period moves quickly, and the response needs to be right the first time.

We can help you:

  • Understand exactly why the ATO is proposing cancellation
  • Gather the right evidence that your business is still operating (invoices, contracts, client correspondence)
  • Prepare and lodge a written response within the deadline
  • Update your ABR details if they’re incorrect

If your ABN has already been cancelled

A cancelled ABN can’t be reinstated; a new one must be applied for via abr.business.gov.au, with evidence of current business activity.

The key takeaway: don’t wait until your ABN is cancelled to act. If you receive any correspondence from the ATO about your ABN, even an initial contact letter, get in touch with our team straight away so we can help you respond before it escalates to a formal notice or cancellation.

Got questions? Email Dare Accounting.