What to Do If Your ABN Application Is Rejected

If your ABN application was rejected, you’re not alone. It’s more common than you might think and it doesn’t mean you can’t run a business.

An ABN rejection usually comes down to small errors, missing info, or a misunderstanding of what qualifies as a business under the ATO’s rules.

In this article, we’ll cover:

• The most common reasons an ABN application gets rejected
  
• What to do next after a rejection and how to reapply successfully (without getting stuck again)

Why ABN applications get rejected

The ATO doesn’t approve every ABN request especially if your business doesn’t clearly meet their criteria.

Here are the most common reasons applications are turned down:

• You’re not carrying on a business - hobbies or one-off jobs often don’t qualify
  
• Missing or mismatched info - your TFN, DOB, or business address don’t match ATO records
  
• No proof of intent - you didn’t show that you’re actively running or setting up a business
  
• Incorrect structure - selecting the wrong type of ABN (e.g. company vs sole trader)

The ATO looks at whether you have plans, systems, or steps in place to run a business - not just whether you want to.

What to do if your ABN is rejected

You’ll usually receive a reference number and a letter or email explaining the reason for the rejection. From there, you can take steps to fix the issue and reapply.

Here’s what to do:

1. Read the ATO’s explanation

Check the rejection message or reference number to understand exactly why it was declined. The most common note is “not entitled” - this usually means the ATO didn’t see enough evidence of a business.

2. Get ready to show business intent

The ATO wants to see that your business is real. That means:

• You’ve made steps to start (like buying tools or building a website)
• You’re already trading or invoicing
• You can show quotes, bookings or social media for your service

Documents that help:

• Invoices or quotes
• Screenshots of your website or booking form
• Business cards or marketing material

3. Fix any errors in your details

Make sure your:

• TFN and DOB are correct and match ATO records
• Business address is accurate
• Main business activity reflects your actual work

Incorrect info is one of the most common rejection triggers - even small typos can cause issues.

4. Reapply with Register My ABN

Once you’ve fixed the problems, you can reapply. At Register My ABN, we guide you through the process step-by-step to help avoid mistakes.

It only takes a few minutes, and most customers get their ABN immediately after submitting.

Don’t let a rejection hold you back

Getting rejected doesn’t mean you’ve failed. It just means the ATO needs more clarity that you’re genuinely starting or running a business.

By following the steps above, gathering simple proof, and avoiding common errors, you’ll be in a strong position to reapply and get your ABN approved.

Ready to try again?

Reapply for your ABN fast with Register My ABN. We guide you step-by-step so you get it right the first time.

👉 Start Your Application