- Your TFN cannot be cancelled but your obligations can be. Close them properly through a Non-Lodgement Advice, ABN cancellation, or entity wind-up in the correct order.
- Sequence is everything. Always finalise tax obligations before cancelling registrations. Getting this wrong creates ATO compliance problems that are costly to fix.
- Closing an entity does not erase personal liability. Directors can still be personally pursued for unpaid PAYG, SGC, and GST after a company is deregistered.
Cancelling your tax file number isn’t as straightforward as most people expect. Whether you’re closing a business, leaving Australia, or simply no longer earning income, many assume there’s a clear process for how to cancel TFN but that’s not how the system works.
The real challenge is understanding what the ATO actually requires instead from stopping your tax lodgements to closing registrations and staying compliant with both ASIC and ATO obligations.
In this guide, we’ll break down how TFN cancellation works in Australia, what actions you need to take based on your situation, and how to properly wrap up your tax responsibilities as an individual, company, or partnership.
Never simply stop lodging. If you no longer need to lodge tax returns, submit a Non-Lodgement Advice through myGov otherwise the ATO will keep expecting returns and penalties will follow.
Can you cancel a TFN in Australia or is it permanent?
No, you can’t actually cancel your TFN in Australia.
A tax file number is a permanent, lifelong identifier issued by the ATO. It stays with you (or your entity) and isn’t something you cancel like an ABN or business registration.
That’s where most of the confusion comes from.
Instead, most people looking into TFN cancellation are actually trying to sort out a bigger change like shutting down a business, leaving Australia, or figuring out what to do with their tax setup going forward.
For example:
- You might be trying to cancel TFN for a company after closing operations
- Or looking to cancel TFN for a partnership that’s been dissolved
- Or simply wondering what happens to your TFN if you no longer need to lodge tax returns
In all these cases, the goal isn’t really to cancel the TFN itself, it’s to properly close your tax obligations and stay compliant with the ATO.
Depending on your situation, that could mean:
- Stopping your tax return lodgements
- Submitting a non-lodgement advice to the ATO
- Cancelling your ABN or other registrations
- Finalising your tax position before exiting
In short: your TFN stays, but your obligations don’t have to.
So what should you actually do instead? That depends on your situation and that’s exactly what we’ll break down next.
What is a Non-Lodgement Advice (NLA) and when should you use it?
If you’re trying to figure out how to cancel TFN, this is the closest thing to it for individuals.
A Non-Lodgement Advice (NLA) is a formal way to tell the ATO that you don’t need to lodge a tax return for a specific year and, if your situation is permanent, that you won’t need to lodge again in the future.
In other words, instead of cancelling your TFN, you’re closing your lodgement obligations properly.
When should you submit a Non-Lodgement Advice?
You should consider submitting an NLA if:
- Your income is below the tax-free threshold
- You’ve stopped working or have no taxable income
- You’ve left Australia and don’t expect further Australian income
- You’re a foreign resident whose only Australian income (like bank interest) is already taxed at source
- You’ve retired or paused your business activities
The key step most people miss
When submitting your NLA, you’ll be asked whether you expect to lodge tax returns in the future.
If your situation is ongoing, make sure you tick the box indicating you won’t need to lodge future returns.
This is what tells the ATO to:
- Stop sending you lodgement reminders
- Mark your account as non-lodging going forward
How to submit a Non-Lodgement Advice
You can submit it online through:
- myGov (ATO online services)
- Or via your tax agent
It only takes a few minutes, but it can save you from ongoing compliance issues.
What happens after you submit it?
Once processed:
- The ATO updates your records
- You won’t be expected to lodge returns for that period (and potentially future years)
- You avoid unnecessary follow-ups or penalties
Think of it this way: you’re not cancelling your TFN, you’re telling the ATO you no longer need to use it.
Do you still need to lodge a tax return in Australia?
Before you take any step around TFN cancellation, whether that’s submitting a Non-Lodgement Advice or closing a business, there’s one thing you need to get right first:
Do you actually still need to lodge a tax return?
This isn’t just a box to tick. Getting this wrong can create unnecessary problems.
- Lodge when you don’t need to → you’ve wasted time
- Don’t lodge when you should → the ATO will follow up, often with penalties
The ATO provides a simple tool called “Do I need to lodge a tax return?”, which gives you a clear answer based on your income, residency status, and whether tax has already been withheld.
When this check matters most
You should run this check if:
- Your income has dropped or stopped
- You’ve left Australia or changed your residency status
- Your only Australian income is bank interest or dividends with tax already withheld
- You had an ABN but weren’t actively trading
- Your situation has changed and you haven’t reviewed your obligations
What to do with the result
- If the tool confirms you don’t need to lodge, your next step is to submit a Non-Lodgement Advice
→ Don’t skip this. The ATO still expects a response, and this is how you provide it - If it says you do need to lodge, complete your return first
→ You can’t properly close your obligations until your ATO records are up to date
Don’t assume your obligations have ended, confirm it first, then act.
Foreign residents with only Australian bank interest are often already taxed at source meaning in many cases, no tax return is required and a simple Non-Lodgement Advice is all that is needed to formally close obligations with the ATO.
Do foreign residents need to cancel their TFN in Australia?
If you’ve left Australia or become a foreign resident, it’s common to start looking into how to cancel TFN, especially if you’re no longer earning income here.
In many cases, the answer is simpler than expected.
- If your only Australian income is bank interest and your bank is already withholding tax at the foreign resident rate. In many cases, you may not need to lodge a tax return, depending on your circumstances.
- The tax has already been taken care of at source.
In that situation, submitting a Non-Lodgement Advice (NLA), with the option ticked to confirm you won’t need to lodge in future and notifying the ATO of your change in residency status is usually all that’s required.
However, if you have other Australian-sourced income like
- rental income
- capital gains from Australian property, or
- certain dividends
your obligations change. In these cases, you may still need to lodge a tax return before anything can be properly closed.
- Foreign residents are only taxed on Australian-sourced income, so anything earned offshore doesn’t come into play.
- But depending on the type of income and how it’s taxed, you may still have lodgement requirements.
If your residency status has changed, make sure you update the ATO. This ensures the correct tax treatment is applied and helps avoid unnecessary follow-ups down the track.
How to cancel a TFN for a company or partnership in Australia
Whether you are closing a company or dissolving a partnership, the process follows the same core principle: there is no standalone TFN cancellation. The entity’s TFN remains on record but becomes inactive once its tax obligations are finalised and its registrations are properly closed.
Here is how each works, and where they differ.
How do you close a company and its TFN obligations?
Follow the steps below:
Step 1: Finalise all ATO obligations first
Before a company can be deregistered, every tax obligation must be up to date. This includes:
- All company tax returns lodged, including the final year return
- All BAS statements finalised and submitted
- GST, PAYG withholding, and any other tax liabilities paid in full
- Superannuation guarantee contributions paid for all employees
- Single Touch Payroll (STP) finalised if the company had employees
This step is non-negotiable.
Under the ATO’s director penalty regime, directors can be held personally liable for unpaid PAYG withholding, unpaid superannuation guarantee charge (SGC), and unpaid GST, even after the company is deregistered.
Step 2: Cancel the company’s ABN
The company’s ABN must be cancelled through the Australian Business Register (ABR). This should generally be done within 28 days of ceasing business operations.
Step 3: Check eligibility for voluntary deregistration
ASIC will only approve voluntary deregistration if the company meets all of the following conditions:
- All shareholders agree to deregister
- The company is not conducting business
- The company’s assets are worth less than $1,000
- The company has no outstanding liabilities
- The company is not involved in any legal proceedings
- All ASIC fees and penalties are paid
If the company does not meet these conditions but is solvent, it will need to be formally wound up rather than deregistered. If it is insolvent, professional insolvency advice is required immediately.
Step 4: Apply to ASIC for voluntary deregistration
Lodge Form 6010 (Application for Voluntary Deregistration of a Company) online through the ASIC Company Officeholder Portal. The application fee is $50. To avoid triggering the next annual review fee, lodge the application at least two weeks before it falls due.
Once ASIC approves the application, it publishes a public notice. The company is formally deregistered two months after that notice is published. At that point, the company ceases to exist as a legal entity.
Important: Company documents should be retained for seven years after deregistration in case of future queries from the ATO or ASIC.
How do you dissolve a partnership and close its TFN?
Here are the steps you need to follow:
Step 1: Determine what kind of change you are dealing with
Not every change to a partnership means the TFN needs to be retired.
If a partner leaves or a new one joins but the business continues under the same structure, the ATO may treat this as a continuing partnership. In that case, you may be able to retain the same TFN and ABN, you simply need to notify the ATO within 28 days of the change.
If the partnership is fully winding up and the business is not continuing, the partnership TFN will no longer be used once the entity’s obligations are finalised.
Step 2: Confirm the dissolution terms
Check your partnership agreement or formalise the dissolution in writing.
Step 3: Lodge the final partnership tax return
This must cover the period up to the date of dissolution. Each partner continues to report their individual share of partnership income in their own personal tax return for the relevant year.
Step 4: Finalise all outstanding tax obligations
- All BAS lodgements completed
- GST cancelled if registered
- PAYG withholding finalised if the partnership had employees
- Superannuation obligations met for any employees
Step 5: Cancel the partnership ABN
The partnership ABN must be cancelled through the ABR within 28 days of ceasing operations. Notifying the ATO is handled as part of this process.
What stays the same when closing a company or partnership?
Regardless of whether you are closing a company or dissolving a partnership, the following apply:
- Individual TFNs are not affected. Directors and partners keep their personal TFNs permanently. These are lifelong identifiers and are completely separate from the entity’s TFN.
- Outstanding tax debts do not disappear. Closing the entity does not extinguish tax liabilities. The ATO can and does pursue individuals, particularly directors, for unpaid obligations after closure.
- The 28-day rule applies to ABN cancellation. Missing this window can leave ongoing compliance obligations in place unnecessarily.
- Do not cancel your ABN before lodging final returns. The sequence matters, finalise all obligations first, then cancel registrations. Reversing this order creates compliance problems that can be difficult to unwind.
Your ABN must be cancelled within 28 days of ceasing operations. Missing this window can keep your compliance obligations technically active beyond your actual cessation date.
What are the common TFN cancellation mistakes to avoid?
- Stopping lodgements without submitting a Non-Lodgement Advice (NLA):
If you stop lodging without informing the ATO, they’ll still expect a return and may issue failure-to-lodge penalties. The NLA is what formally closes the loop. - Cancelling your ABN before lodging final returns:
All tax returns and obligations must be finalised first. Doing this out of order often leads to follow-ups and delays. - Cancelling PAYG withholding after the ABN:
The sequence matters. PAYG withholding needs to be cancelled before the ABN, not after. - Assuming company deregistration clears director liabilities:
It doesn’t. Directors can still be personally liable for unpaid PAYG withholding and superannuation obligations, even after deregistration. - Missing the 28-day notification window:
Your ABN must be cancelled within 28 days of ceasing business. Missing this can leave you with ongoing compliance requirements. - Confusing a partnership change with a full dissolution:
If partners change but the business continues, you may not need to cancel anything, just notify the ATO. Cancelling too early can complicate things unnecessarily.
Do you need a tax agent to close a TFN or business in Australia?
If your situation is straightforward, no business, no complex income, and you just need to submit a Non-Lodgement Advice, you can usually handle it yourself.
But for companies and partnerships, it’s a different story.
You’re dealing with multiple agencies (ATO, ABR, and ASIC for companies), a specific order of steps, and real consequences if something is missed. Get it wrong, and you could be facing penalties, delays, or even director liability, which can cost far more than getting it right from the start.
A registered tax agent can take the pressure off by:
- Reviewing your lodgement history
- Making sure all obligations are finalised
- Handling ABN cancellations
- Coordinating company deregistration with ASIC
They’ll also guide you on timing, especially around final BAS lodgements and your official cessation date.
If you’re unsure whether everything is properly wrapped up, it’s a good sign to get advice before you start cancelling anything.
How Sleek helps you close your TFN and business properly
If you’re unsure how to handle your TFN, ABN, or business closure properly, Sleek makes the entire process simple and stress-free.
Here’s how we help:
- Clear guidance on what to do (and what not to do)
Understand whether you need to submit a Non-Lodgement Advice, cancel registrations, or take additional steps based on your situation - End-to-end business closure support
From ABN cancellation to final tax returns and ASIC deregistration, we handle everything in the right order - ATO and ASIC compliance handled for you
Stay on top of all ASIC compliance requirements without missing deadlines or triggering penalties - Ongoing accounting support if your situation changes
Whether you’re restarting a business or restructuring, we’re here to support you at every stage
Whether you’re leaving Australia, closing a company, or winding up a partnership, Sleek helps you wrap things up properly and stay fully compliant.
Book a free consultation and get your next steps sorted the right way.
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Frequently Asked Questions
What is a Non-Lodgment Advice in Australia?
It’s a formal notification to the ATO that you don’t need to lodge a tax return for a specific income year or future years. It prevents the ATO from treating you as a non-compliant lodger and stops reminders from being issued.
What’s the difference between cancelling a TFN and cancelling an ABN?
A TFN cannot be cancelled. An ABN is a business registration that can and in many cases must be cancelled when a business closes or changes structure. Cancelling an ABN does not affect an individual’s TFN.
Can I cancel my TFN if I’m leaving Australia permanently?
No. Your TFN stays on record permanently. If you no longer need to lodge tax returns after leaving, submit a Non-Lodgment Advice via myGov with the future years option selected. If your residency status has changed, notify the ATO.
