Do I Need to Lodge a Tax Return if I Have an ABN?

If you hold an ABN, lodging a tax return is not optional.

Whether you earned income, spent money, or simply kept the ABN active during the year, the tax system expects a return to be lodged with a Business Schedule. This applies even if your ABN activity was small, irregular, or didn’t generate a profit.

This is one of the most common areas where ABN holders get confused.

When You Must Lodge With an ABN

You are required to lodge a tax return if any of the following apply:

• You earned income under your ABN

• You had business expenses

• You want to record a business loss

• Your ABN was active during the year

There is no minimum income threshold. If the ABN exists and was active, the obligation to lodge exists.

Why the ATO Treats ABN Holders Differently

Employees have tax withheld automatically from their wages. ABN income does not.

Because no tax is withheld during the year, the ATO relies on your tax return to square everything up at tax time. This is why ABN holders are always expected to lodge, even when income is low.

What If You Earned No Income?

Even with $0 income, lodging is still important.

If you had expenses such as training, tools, software, or equipment, lodging allows you to record a business loss. That loss can often be carried forward and used to reduce tax in future years when your income increases.

If you truly had no income and no expenses, lodging still keeps your record clean and avoids unnecessary ATO follow-ups or assumptions.

Why Not Lodging Causes Problems

Failing to lodge can result in:

• ATO reminder notices

• Default assessments (where the ATO estimates your income)

• Loss of deductions

• Delays in future refunds

Lodging on time avoids all of this.

Next Steps for ABN Holders

If you have an ABN, the safest approach is to lodge every year and report your business activity correctly. This keeps you compliant and ensures any losses or deductions are properly recorded.

You can complete your ABN tax return correctly through GoTax here:
https://www.gotax.com.au/small-business-tax-return