Cancellation of GST registration in Australia 2024

GST was introduced in Australia on July 1, 2000. It replaced the previous Sales Tax and a range of other indirect taxes. In Australia GST (Goods and Service Tax) has been a significant part of the country’s tax system. The standard rate of GST is 10% this means that most goods and services are subject to a 10% tax.

Cancellation of GST registration is an important step. Whether a business is closing down, going through financial changes. As the ATO strives to maintain an efficient tax system, understanding the reasons for cancellation of GST registration. In this article, we delve into the intricacies of cancelling GST registration in Australia.

When to cancellation of GST registration

You or the BAS agent can cancel the GST registration within 21 days.

  • Ceasing Business Operations
  • No Longer Making Taxable Supplies
  • Restructure of your business – this includes changing from a partnership, unless the old business carries on another business.

You can chose to cancel of GST registration if your business threshold is below for GST registration, unless you:

  • are a taxi driver 
  • are an Australian resident but acts as an agent for a non-resident that is registered for GST

Also, read about: Apply Tax File Number in Australia (TFN)

Effect on other tax registrations

If you’re permanently closing or pausing your business, you must still meet your tax and superannuation lodgment and payment obligations. Cancellation of GST registration may affect some other tax registration, but not all of your other tax registrations.

When you cancel your GST registration, your fuel tax credit, LCT (luxury car tax) and WET (wine equalisation tax) registrations will also be automatically cancelled.

You must keep a lodging activity statement if you’re registered for PAYG (Pay As You Go) or have FBT (fringe benefits tax) obligations.

Date of cancellation of GST registration

ATO (Australian Taxation Office) usually cancels your GST registration from the date you choose. But you cannot cancel your GST registration if:

  • you were still operating on a GST-registered basis after the cancellation date.
  • continue to operate on a GST-registered basis after your cancellation date.
  • cancel if you’ve already lodged an activity statement for the period containing the date of cancellation.

How to cancel GST registration

You can cancel your GST registration 

  • Using online service for business.
  • through BAS agent.
  • through registered tax.
  • by phone call on 13 28 66 – between 8.00am and 6.00pm, Monday to Friday.
  • through online operating by completing the cancel registration application (NAT 2955).

Online service is allow agents to cancel or update client’s tax registration.

Cancelling your Australian business number (ABN)

If you’re cancelling your GST (Goods and Services tax) registration because your business is broken down, you must also need to cancel your ABN (Australian business number) registration within 28 days.

If your business is registered with ASIC (Australian Securities and Investments Commission), but you no longer carry a business, you can choose to keep ABN registration, but you must cancel your GST registration.

When you cancel your ABN (Australian business number) registration, your GST, LCT (luxury car tax), WET (wine equalisation tax) and PAYG (Pay As You Go) registrations will also be cancelled. You’ll not receive any future activity statements.

FAQs

You may choose to cancel your GST registration if your turnover threshold is lesser than the required for GST registration.

You must cancel the GST registration if your business structure changes, selling or closing down your business.

You can choose the date you would like to cancel the GST registration. The ATO will usually cancel the registration from the date you choose.

The ATO may request documents depending on the reason for cancellation. For example letter explaining the closure might be required.

Yes, you can reapply for GST registration, if your business resume making taxable supplies and meet the registration requirements.

Conclusion

Cancellation of  GST registration in Australia is important for businesses closing down, falling below the annual turnover threshold, or ceasing taxable activities. The process involves accessing the ATO Business Portal, completing requirements, and settling outstanding liabilities. Businesses should be aware that after GST cancellation, regular BAS lodgments are no longer required unless they resume taxable activities.

Conclusion

Cancellation of  GST registration in Australia is important for businesses closing down, falling below the annual turnover threshold, or ceasing taxable activities. The process involves accessing the ATO Business Portal, completing requirements, and settling outstanding liabilities. Businesses should be aware that after GST cancellation, regular BAS lodgments are no longer required unless they resume taxable activities.

Henry Thomas

I am Henry. My passion lies in creating high-performing teams, optimizing business processes and leading the strategic direction of the business. My expertise includes helping small businesses with a range of accounting services, tax preparation, business advisory, accounting and bookkeeping, and personal tax planning, as well as company, trust and partnership tax returns and more.