Hello, earlier in this financial year I got a ABN to operate as a sole trader as I was anticipating being able to get some IT contract work. However that opportunity ended up falling through and I didn't have any income this financial year at all and didn't use my ABN for any purpose.
Will I still need to lodge a tax return or anythingsimilar? If so would cancelling my ABN mean that I no longer need to lodge?
Hi @zrh1501,
You need to lodge a tax return if you have an active ABN, even if your business hasn't earnt any income. There’s no threshold for business income, so you need to lodge an income tax return even if you only earn $1.
If you no longer need the ABN, you can cancel this through the ABR.
I know I would have to do a tax return if I've earned even $1, but I've not earned a single dollar via any income stream at all during the 2024-2025 financial year. Would this still necessitate a tax return?
And if so would cancelling my ABN as it is unused mean that I no longer need to lodge a tax return?
Hi @zrh1501,
If you have an active ABN for the income year then yes, you lodge a tax return and put '0' in the other income section of your tax return to show there is no assessable business income.
You can then cancel your ABN so that you don't need to lodge a return for future income years.
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