If you are changing your business structure (for example, from a sole trader to a company), you will need a new ABN. Other situations where you need to cancel your ABN and apply for a new ABN include are changing from:

• individual/sole trader to partnership or trust;
• individual/sole trader to company or trust
• partnership to company or trust.

You must ensure that your ABN details are updated on your tax invoices. This is essential as your ABN is used to:

• identify your business identity to others when ordering and invoicing; and
• claim GST credits.

Other businesses and entities must withhold payment at the top marginal tax rate if the ABN quoted on the invoice is incorrect or the details do not match up.

Remember to ensure that you update your GST registration details whenever you get a new ABN.

Contact avance if you are considering changing your business structure. There are likely to be tax issues.