To prevent the cancellation of your Australian Business Number (ABN), it is crucial to maintain active business operations and comply with the Australian Taxation Office (ATO) regulations.
Ensure that your business details are current and accurate on the Australian Business Register (ABR), and regularly update any changes in your business structure or contact information. Lodging your Business Activity Statements (BAS) and tax returns on time is essential, as failure to do so can indicate inactivity and lead to ABN cancellation.
Keeping your business active and demonstrating ongoing operations through consistent income reporting is also important. Respond promptly to any requests or communications from the ATO, as this shows your engagement and commitment to fulfilling your tax obligations. If you are a sole trader, remember that even if your income is below the tax-free threshold, you are still required to lodge tax returns and report business income.
Seeking professional advice from a bookkeeper or accountant can help ensure that you meet all necessary requirements and avoid any oversights that could result in ABN cancellation.