Sometimes a business can be temporarily inactive due to various factors. If so, there is a danger that the ATO could cancel your ABN because they see that your business is not operating. If you want your ABN to remain current, ABN holders are advised to keep their business active, even if you are only reporting Nil results in your tax return business schedule, or by submitting Nil BASs if applicable. If the ATO cannot find any business activity in your tax return or in other lodgments or third-party information, your ABN could be selected for the ATO’s cancellation program. If you didn’t want your ABN to be cancelled, and then had to reinstate it, this could be a problem for you, especially if you didn’t notice for a while.
If your business has been a little dormant through COVID, or for other factors, there is a way to let the ATO know you still want to keep it. The ATO has introduced a new automated process that allows businesses to confirm if the ABN is still required via a secure voice response system.
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