If you’re planning to close, sell, or walk away from your business, there are a few important steps to take.
Taking these steps will ensure you don’t get caught out by your suppliers, customers, landlord, employees, or government bodies such as ASIC, the Australian Taxation Office (ATO), the Australian Business Register (ABR), or any relevant licensing authorities.
A good first step is to talk with your accountant or financial advisor.
They can help you understand your options and make sure everything is handled properly before you close.
After discussions with legal and financial professionals, set a closing date and work towards that date
Useful information:
Review your financial position – particularly regarding business debt and other related obligations.
Review and finalise any legal agreements such as leases.
Finalise your tax obligations with your accountant.
Be aware of which business records you still need to keep (for example tax, contracts, and other compliance documentation).
Remember, all of this is likely to take longer than you think, so allow yourself plenty of time.
Closing your business is stressful enough even when it all goes to plan, so the sooner you can start the better. It is likely to take at least three to six months.
The ATO.
Your local council.
Any regulatory or licensing bodies.
Industry associations.
Your landlord.
Your bank.
Your accountant and lawyer.
ASIC, to deregister a company or business name.
The Australian Business Register, to your cancel Australian Business Number (ABN).
Superannuation funds, to finalise employee entitlements.
Employees, with final notice and pay.
It’s also a good idea to give your customers and suppliers plenty of notice so they have time to plan around your decision.
If you run a retail store and are planning to close, it’s important to give your customers enough time to make any final purchases or use their gift vouchers.
You can clearly communicate your closing date through signs in-store, your website and on social media.
Tips to help make the process smooth and fair:
Gift vouchers: let customers know if they need to use gift vouchers before a certain date or how they will be handled after the store closes. Under Australian Competition and Consumer Commission (ACCC) rules, businesses can set expiry dates on gift vouchers, but these need to be clearly communicated.
Returns and exchanges: even if your store is closing, consumer guarantees under Australian Consumer Law (ACL) still apply. This means customers may still be entitled to a refund, replacement, or repair if a product is faulty. Make sure you have a clear returns policy and customers know exactly how they can access after-sales service.
Final sales: if you plan to have a clearance sale, state clearly if all sales are final and whether any returns or exchanges will be accepted during this time.
Keeping your customers informed and treating them fairly helps protect your business reputation and ensures a smoother exit for everyone.