It’s a frustrating situation—you’re all set to start your business, but your ABN (Australian Business Number) application hasn’t been approved yet. You’re still waiting even if you’ve done your share. Although the approval procedure normally takes one to two weeks, unexpected ABN delays do occasionally occur. What is causing your ABN to take so long, then?

You’re not the only person who has ever thought, “Why is my ABN application delayed?” or “What could have caused this delay?” In this blog, we’ll walk you through the common reasons for ABN delay, explain why these delays happen, and offer tips on how to resolve them faster. Let’s dive into the most frequent reasons for ABN delays to help you understand what might be slowing down your application.

What are the Common Roadblocks in the ABN Process that cause delay?

It’s important to realise that the Australian Taxation Office (ATO) may conduct several inspections during the lengthy ABN setting application procedure before diving into the precise reasons for ABN delay. Even though the procedure is typically simple, minor mistakes or miscommunications can cause your ABN acceptance to be delayed. Often, it’s these seemingly simple roadblocks that lead to the most frustration.

Now, let’s take a look at the five most common reasons for ABN delay and what you can do to get problems resolved as soon as possible.

1. Incorrect or Missing TFN (Tax File Number)

One of the most common reasons for ABN delay is submitting an incorrect or missing Tax File Number (TFN), especially for individual ABN applicants. The ATO (Australian Taxation Office) requires your TFN to verify your identity and ensure that you are correctly registered for tax purposes. If you accidentally enter the wrong TFN, it could lead to manual reviews, which means more delays in your ABN approval.

What You Can Do:

Double-check your TFN entry for accuracy.
Ensure that the TFN you’ve provided matches the one on your ATO records.
If in doubt, contact the ATO to confirm your TFN status and resubmit it correctly.

2. Mismatch in Personal or Business Details

Another common reason for ABN delay is a mismatch in personal or business details. The ATO cross-checks the information you submit against their records, so even a slight discrepancy, such as a missing hyphen in your name or an outdated address, could trigger a delay.

What You Can Do:

Double-check personal details: Check that the ATO has your name, birthdate, and address spelled correctly.
Update your address: If you’ve recently moved, update your address with the ATO before applying for an ABN.
Verify business information: Ensure your business name, address, and structure are up-to-date with the ATO.
Correct discrepancies: If you use a trading name or have changed your business name, make sure it matches the ATO’s records.

Recommended Read: Difference between ABN and ACN

3. Lack of Clear Business Intent

One of the reasons for ABN delay is when applicants fail to demonstrate a clear and genuine business intent. The ATO requires you to explain your business activities and structure in detail.

If your application only describes your business as a “hobby” or provides vague information, It can be marked for additional examination, which would cause your ABN approval procedure to drag on. You can take a business advisory service from the tax agent.

What You Can Do:

Be specific and clear about your business activities.
Provide a genuine business description (e.g., selling handmade jewellery online, running a consulting firm).
Avoid vague descriptions like “casual sales” or “personal project”—these can be flagged as non-business activities and are common reasons for ABN delay.

4. You’re Not a Resident or Don’t Have an Australian ID

Due to the extra verification procedures needed, your ABN application may be delayed if you are a non-resident or do not possess an Australian ID. In order to prove their validity as business owners in Australia, non-residents are frequently asked to provide extra paperwork, such as a passport, visa, or business plan. This extra paperwork may be one of the reasons for the ABN delay.

What You Can Do:

Ensure you have all the necessary documentation ready, such as your passport or visa.
If requested, provide additional details like your business plan.
Be patient, as the ATO may need extra time to manually verify your details, which can be the reasons for ABN delay.

5. System or Processing Errors by the ATO

Sometimes, delays in your ABN application may occur due to system or processing errors by the ATO. Technical glitches, system maintenance, or even public holidays can cause your application to be late or stuck in a queue. While not common, reasons for ABN delay can sometimes stem from internal issues within the ATO’s processing system.

What You Can Do:

Regularly check the status of your ABN application on the ATO website for any updates.
If your ABN application is taking longer than expected, contact the ATO to inquire about any potential issues or delays in processing.
Stay informed about any public holidays or system maintenance updates that might affect processing times for ABN applications.

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: When to Cancel Your 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.

Conclusion

ABN delays are a common issue for many new business owners, but with patience and a little attention to detail, you can quickly resolve the issue. Whether it’s a mismatch in your personal details or a mistake in your TFN, understanding the reasons for ABN delay will help you speed up the process and get your business up and running as quickly as possible.

Don’t let the reasons for ABN delay hold you back. Contact ISM Accountants today for professional assistance and get your ABN approved with ease!

FAQ’s

How long does it take to get an ABN in Australia?

ABN approvals typically take 1-2 weeks. If you’ve waited longer, it may be due to common issues like mismatched details or a system backlog.

What should I do if my ABN application is not approved?

Check your application for errors, then contact the ATO for guidance. They can help resolve any issues or advise you on next steps.

Can a non-resident apply for an ABN?

Yes, but non-residents must provide additional documentation, such as a passport and visa. Be prepared for extra verification steps.

Does a delayed ABN application affect tax reporting?

Yes, you must have an ABN to report taxes. If your ABN is delayed, it’s best to resolve the issue quickly to avoid any issues with tax reporting.

How do I fix errors in my ABN application?

If you spot any mistakes in your ABN application, contact the ATO to request a resubmission or correction.