Given a group G, a (unital) ring A and a group homomorphism σ : G → Aut(A), one can construct the skew group ring A ⋊ σ G. We show that a skew group ring A ⋊ σ G, of an abelian group G, is simple if and only if its centre is a field and A is G-simple. If G is abelian and A is commutative, then A ⋊ σ G is shown to be simple if and only if σ is injective and A is G-simple.As an application we show that a transformation group (X, G), where X is a compact Hausdorff space and G is abelian, is minimal and faithful if and only if its associated skew group algebra C(X) ⋊ σ G is simple. We also provide an example of a skew group algebra, of an (non-abelian) ICC group, for which the above conclusions fail to hold.