Applying for an Australian Business Number (ABN) is one of the first steps when starting a business in Australia. While the process is usually straightforward, many applicants experience delays or even find their applications unsuccessful. If you have been searching for “how long does it take for an ABN to be approved” or “why was my ABN application unsuccessful,” you are not alone.
There are several common reasons for ABN delay, including incorrect personal or business details, identity verification issues, or unclear business eligibility. Understanding these common reasons for ABN delay can help you avoid processing problems and ensure your ABN is approved smoothly. This guide explains the main reasons for ABN delays, what to expect regarding processing times, and practical steps you can take if your application isn’t approved.
How Long Does It Take for an ABN to Be Approved?
In most cases, an ABN is issued instantly once your online application is correctly completed. However, the Australian Business Register (ABR) may take up to 28 days to process an application if additional checks are required. This delay often occurs due to common reasons for ABN delay, such as mismatched personal or business information, unclear business activity, or eligibility issues.
If your ABN isn’t issued straight away, you’ll be given a reference number while the ATO checks your details. This lets you track your application and shows that it’s being reviewed until a final decision is made.
Recommended Read: How to Set up ABN in Australia?
5 Most Common Reasons for ABN Delay
There are several common reasons for ABN delay that can cause your application to take longer than expected. These delays often happen when the information provided is incomplete or inaccurate, when the business doesn’t clearly meet eligibility requirements, or when additional identity verification checks are needed by the ABR.
Understanding these issues can help you prepare a stronger application and reduce the chances of your ABN being delayed or rejected.
1. Incorrect or Incomplete Information
Even small mistakes in your application can cause delays. The Australian Business Register (ABR) compares your details with records held by the ATO and ASIC. Discrepancies, like misspelled names, incorrect addresses, or outdated business information, can lead to manual reviews and slow down the processing time.
What you can do:
- Double-check all personal and business details before submitting your ABN application.
- Make sure your information matches what the ATO and ASIC have on record.
- If you’ve recently moved or changed your business structure, update your details with the ATO first.
- Take your time to review the application to avoid small errors that could cause delays.
2. Business Not Meeting Eligibility Criteria
Not everyone is entitled to an ABN. The ATO requires applicants to demonstrate that they are carrying on or starting a business. Applications lacking clear business intent or activity may be delayed or rejected.
What you can do:
- Clearly describe your business activities in your ABN application.
- Avoid vague phrases like “casual sales” or “personal project.”
- Specify exactly what your business does, for example: “selling handmade jewellery online” or “providing IT consulting services.”
- Providing clear details helps the ATO assess your eligibility quickly and accurately.
3. Inconsistent Records with the ATO or ASIC
The ABR checks your application details against records held by the ATO and ASIC. If there are any discrepancies, your application might be flagged for manual review, which can cause delays.
What you can do:
- Make sure your personal and business details are consistent across all platforms.
- If you’ve recently updated your information with the ATO or ASIC, give the systems some time to reflect these changes before applying.
- Keeping your records consistent helps the ABR process your ABN application more smoothly and quickly.
Recommended Read: Can ATO Track ABN Income?
4. Security and Identity Checks
To prevent fraud, the ABR may conduct identity verification processes. If your identity documents cannot be verified or if there are mismatches, the ABN will not be issued until the issues are resolved.
What you can do:
- Make sure the personal information in your ABN application matches your identity documents.
- If you are a non-resident, have extra documents ready, such as your passport or visa, to verify your identity.
- Having the correct documents ready can help speed up the verification process.
5. High Volume of Applications
During busy times, like the end of the financial year, the ABR can receive a large number of applications, which may result in longer processing times. Although it doesn’t happen often, occasional internal issues within the ATO’s systems can also cause delays.
What you can do:
- If your ABN application is taking longer than expected, check its status using the ABN Lookup service.
- If there are no updates, contact the ATO to ask about any potential issues or delays.
- Keeping track of your application helps you address problems quickly and avoid further delays.
What Can You Do If Your ABN Is Delayed?
Delays can happen even if many ABN applications are completed quickly. You may be able to handle the problem more skillfully if you know the reasons for ABN delay and what steps to take.
1. Review Your Application for Accuracy
Before contacting the ATO, make sure that all the information provided in your application is accurate and complete. Common reasons for ABN delay include:
- Incorrect or missing Tax File Number (TFN): Individual candidates must have a valid TFN.
- Mismatched personal or business details: Ensure that your name, date of birth, and business information match the records held by the ATO.
- Unclear business activity descriptions: Provide a clear and specific description of your business activities.
Make the necessary corrections and submit your application again if you find any errors. If you want to fill out the ABN form, you can take help from the ISM Accountant or apply online.
2. Understand the Standard Processing Time
After receiving ABN applications, the ATO strives to assess them in 20 business days. They will get in touch with you if you require more information. Within 14 days of your application being processed, you ought to receive a letter verifying your ABN.
Your application may have been delayed past this period for a number of reasons, including:
- Manual review requirements: Certain applications may require additional verification.
- High application volumes: Peak periods can lead to processing backlogs, one of the reasons for ABN delay.
- System maintenance or technical issues: Scheduled maintenance can temporarily affect processing times.
3. Check the Status of Your Application
The ABN Lookup service allows you to track the status of your ABN application. You may access your business details and check if your ABN has been issued with this tool.
4. Contact the ATO for Assistance
If your ABN application is delayed longer than usual due to ABN delay reasons, it’s not a bad idea to call the ATO for an update. They will be able to advise you on the next step if required and inform you what stage your application has reached. Be patient and follow up where necessary as the ATO handle a lot of requests and response times are different.
5. Be Aware of Scheduled System Maintenance
ABN processing can potentially be impacted by maintenance scheduling. The ATO periodically makes maintenance windows available during which the services might be delayed or even temporarily unavailable. You must be aware of these schedules to fully enjoy the potential impact on processing time.
By following these steps and staying informed about the reasons for ABN delay, you can effectively manage any delays in your ABN application process. If you need further assistance or have specific concerns, feel free to ask.
Recommended Read: Difference Between TFN and ABN
Why Was My ABN Application Unsuccessful?
If your ABN application was unsuccessful, it is usually because the ATO decided you are not entitled to one. This may happen if:
- You applied without a genuine business activity.
- Your application lacked supporting details about your enterprise.
- The information you provided did not prove that you are running a business.
In this case, you will receive a refusal letter outlining the reasons. You may reapply once you have the correct documentation and a genuine business purpose.
Recommended Read: How to Cancel ABN?
When Should You Reach Out to a Tax Agent?
If you’re dealing with a delayed ABN application, it’s a good idea to get help from a registered tax agent, especially if:
- Your ABN application has been pending for more than 20 business days
- You’ve received a request from the ATO for extra documents or clarification
- You’re unsure about your eligibility, particularly if you’re a sole trader, contractor, or non-resident
- You want to avoid mistakes and delays and make sure everything is done right the first time
A registered tax agent can take over the process for you, help fix any issues, follow up with the ATO, and ensure your ABN is approved without extra stress or delays.
How ISM Accountants Can Help You With Delayed ABN Applications?
At ISM Accountants, we specialise in identifying and resolving common reasons for ABN delay. We know exactly what the ATO looks for and can ensure your application is completed correctly the first time, minimising delays and frustration.
Here’s how we help:
- Correct Tax File Number (TFN) Linkage: An inaccurate or absent TFN is one of the main reasons for ABN delay. In order to prevent processing delays, we make sure your TFN is linked appropriately.
- Identity Verification: The ATO cross-references your personal and business details. If there’s a discrepancy, it can delay your ABN. We make sure your details match ATO records, streamlining the approval process.
- Clear and Accurate Business Intent: Vague or poor descriptions of business activities are the primary reason for delayed ABN issuance. We can assist in developing an inclusive and specific business description to meet ATO requirements.
- Supporting Non-Residents: Delays for overseas applicants are most commonly caused by incomplete documentation or further verification. We manage these additional requirements to provide a seamless processing of your application.
- Follow-ups with the ATO: If your application is stalled or takes too long to process, we will contact the ATO directly. This proactive approach can immediately resolve the reasons for ABN delay, lowering wait times.
You can be sure that working with ISM Accountants will expedite the completion of your ABN application. We simplify the procedure so you can concentrate on starting your company. Explore our services in order to simplify your tax preparation.
Final Thoughts
Applying for an ABN should be a simple process, but delays are common when applications are incomplete, inconsistent, or when eligibility is unclear. Understanding the common reasons for ABN delay will help you avoid mistakes and get your business number faster.
If your ABN application has been unsuccessful or delayed, speaking with a professional accountant can save you time and frustration. At ISM Accountants, we help business owners across Australia with ABN applications, registrations, and compliance. Get in touch with us today for expert guidance.
FAQ's on Common reasons for ABN Delays
Most ABN applications are approved instantly, but some can take up to 28 days if the ATO needs to verify your details or check eligibility. Delays are common when there are inconsistencies or missing information.
Delays usually happen when the information provided is incomplete or incorrect, when there are issues verifying your identity, or when your business activity isn’t clearly defined. Mismatches with ATO or ASIC records can also cause hold-ups. Additionally, busy periods, such as the end of the financial year, can slow down processing times.
The most common reasons include incorrect personal or business details, ineligible business activity, inconsistent records with ATO/ASIC, identity verification issues, and high application volumes.
An ABN application may be unsuccessful if the ATO finds that you are not actively carrying on a business, if your information is incomplete or incorrect, or if your application doesn’t meet the eligibility requirements.
Yes, you can reapply once you have corrected the errors or provided additional evidence of your business activity. Working with a registered accountant can help avoid repeated mistakes.
You can check your ABN application status using the ABN Lookup service online or by contacting the ATO Business Infoline. This allows you to see if your ABN has been approved, delayed, or requires further information.
You can’t register for GST without an active ABN, so any delay can affect this process. It may also hold up setting up business bank accounts, sending invoices to clients, and other day-to-day business activities. That’s why it’s important to keep an eye on your application and deal with any issues as soon as they arise.
