Changing, pausing, closing or selling your business
Updated: 4 days ago
Running a business is an incredible journey, full of growth, challenges, and eventually, change. Whether you're ready to pivot, take a break, hand over the reins, or shut things down, how you manage the transition can shape your future success and peace of mind.
Here’s a practical breakdown of the tax and administrative steps you need to follow to stay compliant with the Australian Taxation Office (ATO), no matter the path you choose.
Changing Your Business Structure or Direction
Pivoting your business can breathe new life into your operations. It might mean offering new services, targeting a different market, or rebranding completely. When you change your business structure, there are specific ATO responsibilities to tick off:
Key ATO Steps:
Register a new Australian Business Number (ABN) if changing your structure (e.g., from sole trader to company)
Notify the ATO of your business changes
Transfer assets and liabilities to the new entity
Register for applicable taxes (GST, PAYG etc.)
Review and update employee obligations, including super and entitlements
Lodge final tax returns for the old entity
Pausing Your Business
Need a break? That’s completely valid. Pausing your business means you're not operating, but the ATO still expects you to stay in touch.
During the Pause, You May Still Need To:
Lodge BAS or income tax returns if required
Pay any outstanding tax liabilities
Fulfil employee obligations if you still have staff
Maintain accurate financial records
Renew business licences or registrations if required
It’s important to notify the ATO to ensure your obligations are adjusted accordingly.
Closing Your Business
Shutting down is never easy, but with the right process, you can close your business cleanly and avoid unnecessary tax problems later on.
Steps to Take:
Notify the ATO of your intent to close
Lodge your final income tax return and activity statements
Pay any outstanding debts including PAYG, GST and super
Cancel your ABN, GST and any other registrations
Keep accurate records for at least 5 years (as required by law)
Selling Your Business
Selling can be a great outcome, whether you’re moving on to new ventures or retiring. Just don’t forget the tax implications.
ATO Responsibilities When Selling:
Notify the ATO of the sale
Determine Capital Gains Tax (CGT) or other applicable tax obligations
Lodge final tax returns
Pay any remaining tax debts
Retain business records for the required period
Final Thoughts
Transitions are part of every business lifecycle. Whether you're changing, pausing, selling, or closing, what matters most is doing it with the right advice and full compliance. The ATO has strict requirements, and mishandling your obligations can lead to penalties, interest, or even legal action.
Need Expert Help?
If you’re unsure about the tax side of your business transition, we’re here for you. Call Dolman Bateman today on (02) 9411 5422 to speak with a qualified accountant who understands your business and the Australian tax system.
Let us help you make your next move with confidence.
Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. All content relates to the current financial year only. Future changes to tax laws, thresholds or administrative requirements may affect the accuracy or relevance of this information, so you should always confirm that the guidance remains current. While every effort has been made to ensure accuracy at the time of publication, Dolman Bateman accepts no responsibility or liability for any loss or damage arising from reliance on this information. You should seek professional advice tailored to your circumstances before making any financial or tax decision.
