Closing Your Business Checklist: Every Step to Finish Properly
Quick answer
To close a business in Australia, lodge your final BAS and tax return, cancel your GST registration within 21 days and your ABN within 28 days of stopping, pay final wages and super, cancel your business name, licences and contracts, and keep your records for 5 years (7 years for employee records). Companies must also be deregistered with ASIC.
Closing a business, whether you’re retiring, moving on or starting something new, comes with a surprising number of loose ends. Work through this checklist in order and you won’t miss anything that comes back to bite you later.
1. Before you stop trading
- Decide on your closing date and tell your accountant or tax agent
- Tell your customers, with notice by email, your website, social media or in store
- Tell suppliers, confirm final orders and pay what you owe
- Chase any money owed to you before you close
- Check your lease and contracts for notice periods and exit fees
2. Employees
- Give staff written notice of the end of their employment
- Pay final wages and any unused annual and long service leave
- Work out redundancy pay, if it applies
- Pay all outstanding super. Under Payday Super, it’s due with the final pay
- Finalise your Single Touch Payroll reporting for the year
3. Tax
- Lodge your final BAS, including any GST adjustments for assets you keep
- Cancel your GST registration within 21 days of stopping
- Cancel PAYG withholding registration if you had employees
- Pay any outstanding tax, PAYG or GST
- Lodge your final income tax return
- Cancel your ABN within 28 days, after all lodgements are done
4. Registrations and accounts
- Cancel your business name with ASIC
- Cancel licences and permits with your state or local council
- Cancel insurance you no longer need, but ask about run-off cover for future claims
- Close business bank accounts and merchant or payment facilities
- Cancel subscriptions, software, phone and utilities
- Set up mail redirection and decide what to do with your website and domain
5. Extra steps for companies
- Check whether the company qualifies for voluntary deregistration, or needs a liquidator
- Distribute or sell all company assets: anything left passes to ASIC
- Keep paying the ASIC annual review fee until the company is deregistered
- Lodge Form 6010 with ASIC to apply for voluntary deregistration
Not sure which option fits? Read voluntary deregistration vs liquidation.
6. Records
- Keep business and tax records for 5 years
- Keep employee records for 7 years
- Securely destroy customer information you no longer need to keep
Tip: Don’t cancel your ABN until every final lodgement is done. You may need it to lodge your last BAS or receive a refund.
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Frequently asked questions
Do I have to cancel my ABN when I close?
Yes. Cancel it within 28 days of stopping your business, once all your final lodgements and payments are done.
Can I keep my business name for later?
Yes. You can keep a registered business name as long as you renew it, even if you’re not currently trading.
What if I’m only pausing my business?
If you plan to restart, you may not need to cancel everything. Keep your ABN and lodge nil BAS if you’re GST registered, and speak with your tax agent.
How long do I keep records after closing?
Generally 5 years for tax records and 7 years for employee records. Some industries have longer requirements.
This article is general information only, not tax, legal or financial advice. Check business.gov.au and ato.gov.au, or speak with a registered tax agent about your situation.
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