ABN But No Income — Do I Still Need to Lodge?

Holding an ABN doesn’t stop your tax obligations just because you didn’t earn money.

If your ABN was active during the year, the tax system still expects a response — especially if you spent money setting up or running your business. Lodging keeps your record clean and ensures nothing is missed.

This catches out a lot of first-year ABN holders.

When You Still Need to Lodge With No Income

You should lodge a tax return if any of the following occurred, even if income was zero:

• You bought tools or equipment

• You paid for software or subscriptions

• You completed training related to your business

• You paid for a website or advertising

• You purchased supplies

• You incurred any setup costs

All of these count as business expenses. When expenses exceed income, you create a business loss.

That loss isn’t wasted — it can often be carried forward and used to reduce tax in future years when your income increases. But it only exists if you lodge.

What If There Was Truly No Activity at All?

If you had:

• No income, and

• No expenses

It’s still smart to lodge.

Lodging confirms to the ATO that nothing happened during the year and closes it off properly. This avoids reminder notices, follow-ups, or assumptions that income was hidden.

Why Lodging Matters Even With Zero Income

Failing to lodge can lead to:

• ATO reminder letters

• Default assessments

• Delays when you later try to claim deductions or losses

A simple lodgement avoids these issues and keeps your ABN history clean.

Do Zero-Income ABNs Get Scrutinised?

Not when they’re lodged correctly.

Problems usually arise when:

• ABNs are active but no return is lodged, or

• Activity occurs but is never reported

Regular lodgement — even with zeros — shows compliance.

Next Steps for ABN Holders

If your ABN was active, the safest approach is to lodge every year — regardless of income. This protects future deductions, preserves losses, and avoids unnecessary ATO attention.

If you need to lodge a zero-income or low-activity ABN return, you can complete it properly through GoTax here:
https://www.gotax.com.au/small-business-tax-return