How Long Is an ABN Valid For? A Detailed Look

The Australian Business Number (ABN) is a unique 11-digit identifier assigned to businesses and other entities operating within Australia. It facilitates various interactions with the Australian Taxation Office and other government agencies for purposes like Goods and Services Tax (GST) registration and invoicing. This article clarifies how long an ABN generally remains active and the circumstances that affect its validity.

The Ongoing Nature of ABN Validity

An ABN does not have a predetermined expiry date. It remains active as long as the entity conducts an enterprise in Australia and meets eligibility criteria. For instance, a sole trader’s ABN stays valid as long as they are actively running their business.

When an ABN is No Longer Valid or Needs Cancellation

An ABN requires cancellation under several circumstances. If a business stops its operations, such as a sole trader retiring or a company ceasing trade, the ABN is no longer necessary. A change in the legal structure of an entity, for example, transitioning from a partnership to a company, typically necessitates applying for a new ABN for the new structure.

The entity is also obligated to cancel its ABN if it no longer meets the entitlement conditions for holding one, perhaps due to no longer carrying on an enterprise. Additionally, if an entity is wound up, its ABN must be cancelled. Entities can manage this cancellation process through the Australian Business Register’s online services or by directly contacting the Australian Taxation Office, ensuring compliance with administrative requirements.

Verifying ABN Status

The Australian Business Register (ABR) provides public access to ABN information. The ABR website hosts the ABN Lookup tool, which allows individuals and businesses to verify the current status of any ABN. By entering the 11-digit number, users can confirm if an ABN is active or has been cancelled. The lookup also displays details such as the entity’s registered name and its Goods and Services Tax (GST) registration status. This tool ensures transparency and helps confirm the legitimacy of a business for transactions or partnerships.

Reinstating or Obtaining a New ABN

A cancelled ABN cannot typically be reinstated if the reason for cancellation was a fundamental change in business operations or legal structure. If an entity previously ceased operations and later decides to restart, or if its legal structure changes significantly, a new ABN application is generally required. The application process involves demonstrating eligibility to carry on an enterprise in Australia. This ensures the ABN accurately reflects the current business activities and legal identity.