Cancelling Your GST Registration: The Rules, the Timing and the Sting
Reviewed by Patrick Sargent CA, Registered Tax Agent 25758613·Published 2 August 2026 · Last reviewed 2 August 2026·5 min read
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Must, may and may not
When you can and cannot cancel GST registration
Situation
Rule
Ceased or sold the business
Must cancel within 21 days, as part of the close-down sequence and after the final BAS
Turnover fallen below $75,000
May cancel. Staying registered is also fine, and sometimes smarter
Registered voluntarily under the threshold
Generally must stay registered for 12 months before cancelling
Rideshare drivers
Effectively cannot while driving, because the dollar-one rule has no threshold to fall under
Restructuring from sole trader to company
The old entity's registration cancels and the new one registers fresh. GST registration does not transfer
When you can and cannot cancel GST registration
The asset adjustment: the exit fee
Cancellation assumes assets you still hold will now be used privately or outside the GST system, so a share of the credits claimed on them is repaid through an increasing adjustment in the final BAS, based on each asset's remaining value.
The may-cancel decision when you drop under $75k
Cancelling below the threshold trades cheaper pricing or fatter margins and no more BAS against losing input credits, paying the asset adjustment now, and re-registration friction if you grow back. Business customers claiming credits are indifferent to your GST, while consumers genuinely see the price cut.
Frequently asked questions
How do I cancel my GST registration?
Through ATO online services or your registered tax agent, effective from a nominated date, within 21 days of ceasing business, with the final BAS covering the adjustments.
Do I have to pay anything when I cancel GST?
Often yes. An increasing adjustment repays part of the GST credits on assets you still hold, valued at cancellation.
Can I cancel GST if my turnover drops below $75,000?
Yes, after 12 months if you registered voluntarily. Weigh the asset adjustment and lost credits against the simplicity of no BAS.
Does cancelling GST fix my overdue BAS?
No. Every outstanding period must still be lodged. Cancellation only stops future obligations from the effective date.
What happens to GST if I sell the business?
A sale as a going concern can be GST-free if the conditions are met, and your registration still cancels within 21 days of ceasing.
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.
Years behind? It ends this week.
If overdue BAS is the real reason you are looking at cancellation, TaxNudge can lodge the backlog and time the cancellation correctly. Book a free assessment.
