Reactivating an ABN: How to bring your Aussie business back from the dead

Keen to revive an old business idea that fell by the wayside? Or perhaps you’re starting a new company or sole trading endeavour in Australia?

If you previously held an ABN that has now been cancelled, you’ll need to reactivate it before you can start trading. But don’t worry. The process is just as easy as starting from scratch – and it’s actually pretty similar.

In this post, we’ll explain how to reactivate an ABN and provide heaps of complementary info.

Table of contents
Understanding the ABN Reasons why ABN is cancelled Who is entitled to an ABN? How to reactivate an ABN Reactivating your banking needs in Australia FAQs

Understanding the ABN

The Australian Business Number (ABN) is a unique 11-digit identifier for a business or organisation. Once registered, the government and the community can use the ABN Lookup tool to verify your business details and legitimacy.

Reasons why an ABN is cancelled

You must cancel your ABN when your business has:

• Been sold
• Shut down or ceased operating
• Changed business structures, such as from sole trader to company
• Stopped operating in Australia
• Stopped making supplies connected to Australia¹

Before cancelling your ABN, you must meet all government lodgement, reporting, and payment requirements. These obligations include lodging statement activities or paying as you go (PAYG) withholding reports, and paying any outstanding taxes, including GST.¹

Once you’ve met your obligations, you can cancel your ABN online through the Australian Business Register (ABR) website.

If your business has stopped operating, you should cancel it within 28 days.²

Should the Australian Securities and Investments Commission (ASIC) find your company has been deregistered, the ABR will cancel your ABN.³

Your ABN may also be cancelled when:

• You haven’t reported business income
• You haven't kept your lodgements up-to-date
• You lodge a final tax return, advising that you have stopped trading³

Who is entitled to an ABN?

Not everyone can get an ABN. Should you apply for one when you’re not entitled, you could face prosecution or criminal charges.⁴

With that in mind, it’s crucial to understand the eligibility requirements. To apply for an ABN, you must be at least one of the following:

1. Undertaking or starting an enterprise in Australia
2. Making supplies connected with Australia's indirect tax zone
3. A company under the Corporations Act⁴

Most people fall under the first scenario. By “enterprise,” the ABR means an entity that engages in business activities. Common elements of a “business activity” include:

• An intention to make a profit
• Commercial sales of products or services
• Systematic, organised, and repetitive activities carried out in a business-like manner
• Relevant knowledge and skills⁴

It’s not enough just to have a bright idea. You need to have made some attempt to commence your business before applying for an ABN. Some of the scenarios may include:

• Marketing, building a website, or creating social media accounts
• Purchasing business-related supplies like tools or stationery
• Obtaining relevant licenses and insurance
• Leasing or purchasing premises for your business
• Bidding on contracts or issuing quotes
• Consulting with professionals like financial advisors and accountants
• Applying for a loan
• Purchasing an existing business⁴

👆Read more on how much it costs to get an ABN in Australia

Who isn’t entitled to an ABN?

You aren’t entitled to an ABN if you work as an employee, including apprenticeships.

An employer can’t make you obtain an ABN as a condition of employment.⁴

Entitlement reviews

The ABR conducts regular ABN entitlement reviews, which may occur when you apply for an ABN or after it has been issued. Its ABN cancellation program identifies and cancels disused ABNs to maintain current, up-to-date records for government and the general public.³

How to reactivate an ABN

First, review the entitlement requirements above or on the ABR website. You could get into trouble if you apply for an ABN when you’re ineligible.

Applying for and reapplying/reactivating an ABN is done through the same online form on the ABR website.⁵ The reapplication process is almost identical to starting from scratch.

When re-applying, in Step 2: Application Detail, the ABR will ask the following questions:

• “Does the applicant currently have an Australian Business Number (ABN) or previously had an ABN?”
• “If you answered yes to the question above, what is the Australian Business Number (ABN) currently or previously held by the applicant?”

The ABR then states, “Not quoting your ABN may delay the registration process. You can search for your current or previous ABN using ABN lookup.”

Enter the ABN of your previous business into the relevant box to proceed with the application.

Identifying the official ABN registration website

A slew of suspicious-looking websites offer to register your ABN on your behalf. These unofficial, third-party portals could harvest your personal information or charge for the free registration process.

Using the official ABN application webpage is fast, efficient, secure, and free.

Documents required when applying for an ABN

Before applying for an ABN, you must decide on a business structure, such as a sole trader, partnership, or company. Think long and hard about this, and consider getting expert advice if required. Changing the structure later is an administrative headache.

To apply or reapply for an ABN, gather the following information or documents, where applicable.

• Your Tax File Number (TFN) and those of any partners, directors, and trustees.
• Registration numbers of your tax/BAS agent, or professional adviser
• Previous ABN number
• Australian company number (ACN) or Australian Registered Body Number (ARBN)
• The date you’ll need your ABN from (when you expect to start business activities)
• Entity legal name
• Authorised contacts (such as a registered tax agent)
• Associate details
• Business contact details, including address, postal address, email address, and phone number
• Business activity details, such as your primary source of income
• Business locations (physical addresses of all premises)⁶

Reactivating your banking needs in Australia

In addition to reactivating your ABN, it’s vital to find the right banking solution for your new business venture. Whether you’re a foreign national or a local dealing with overseas clients, low-cost international transfers could reduce your operational expenses significantly.

If your business plans to buy from overseas suppliers or invoice international clients, Wise Business helps you manage these cross-border transactions without the high fees of traditional providers.

Wise Business helps streamline overseas business payments without foreign transaction fees, saving up to 3x compared to other providers.

• Free to register — Send money to 140+ currencies with no hidden exchange rate markups
• Make up to 1,000 transfers at once with the Wise batch payments feature
• Fast, low-cost payouts to customers, freelancers, employees, investors, and suppliers globally
• Automate invoice payments, recurring transfers, and international payroll
• Fast and fully secure payments through Wise, even for large amounts

Tired of hidden fees and complex processes when making overseas payments?

Start sending with a Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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FAQs on ABN reactivation

1. How long does it take to reactivate an ABN?
The reactivation process is similar to the application process. If all your information is ready, it should only take around 10 minutes to fill out the online form. Most applications are approved instantly. However, it can take up to 28 days⁷ to manually process an application, if required.

2. How do I reactivate my ABN for free?
Registering an ABN through the Australian Business Register is free.⁸ Be wary of any third-party websites that offer this service for a fee.

3. Can I reactivate my ABN?
Yes. Reactivating an old ABN is done through the same portal as applying for a new one. The process is fast, easy, and free.

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Sources:

1. Cancel an ABN
2. When should you cancel your ABN
3. Entitlement reviews
4. ABN entitlements
5. Applying for an ABN
6. What you need for your ABN application
7. ATO Community Forum
8. Register an ABN