There are a number of tax matters you may need to deal with if you:

• register a business but don’t actually start the business
• change your business entity type because you restructured your business
• stop operating your business
• sell the business
• wind up your company.

These tax matters may include:

• cancelling your Australian business number (ABN) and other registrations
• lodging and paying any outstanding activity statements and instalment notices
• making goods and services tax (GST) adjustments on your final activity statement
• lodging final tax returns.

You should also check whether your state or territory government has any special requirements.

If your business exit is planned, we have found that leaving a business is less risky if you work with your tax adviser to address the taxation issues of an exit strategy or succession plan well before leaving the business.

You may have to pay GST or capital gains tax on some of all of the business assets you sell, including land or buildings, or intangible assets, such as patents, licences or goodwill. Some exceptions and concessions apply.

You must cancel your GST registration within 21 days of ceasing business, and your ABN within 28 days. If your business starts to trade again in the future, or you start a new business and your business structure remains the same, you can apply to have your ABN reactivated.