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  1. #1
    Join Date
    Feb 2005
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    East Bentleigh, Melbourne, Vic
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    68
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    4,494

    Default ABN registration and GST?

    Hi all,

    I'm in the throes of getting an ABN for my hobby WW activities as I occasionally receive commissions and such.

    My simple (?) question is: is it worth registering for GST with an anticipated income level from WW at below $50k/pa?

    Any thoughts or comments welcome.

    Cheers!

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  3. #2
    Join Date
    Jan 2004
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    Over there a bit
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    Default

    'Pends, at 45K yep, at 2K nup.

    The point at which it will or won't will depend on your book keeping practices, it may take more time than it's worth.
    The biggest factor may come down to your entire financial income/expense/tax/GST/bllod group picture.





    Before reading this you should consult your financial PDS or better yet, speak with someone who knows they are on about
    Boring signature time again!

  4. #3
    Join Date
    May 1999
    Location
    Tooradin,Victoria,Australia
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    73
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    11,918

    Default

    In this case Steve your accountant is your best friend.

  5. #4
    Join Date
    Feb 2005
    Location
    Kingsgrove NSW
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    73
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    72

    Default

    I'm not an accountant, but think of all the GST that you pay on tools and timber that you can claim back as an input tax credit if you do register.

    Cheers

  6. #5
    Join Date
    Jul 2005
    Location
    Wagga Wagga
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    145

    Default

    Small businesses I deal with, which have a T/O of less than 50K don't usually register.

  7. #6
    Join Date
    Jul 2005
    Location
    Victoria
    Posts
    5,215

    Default

    In sixteen words, Two Words summed it up. But Go talk to your accountant as you are earning an income and thinking of part time wood related business so it might be different

    But DO get an ABN (and other members) as you can set up an account at Bunnies and m10. It wont be a credit acc as you will pay on the spot, but you will get your tradies discount which will vary on what you buy, but anything from 5-25%

  8. #7
    Join Date
    Jun 2003
    Location
    ...
    Posts
    7,955

    Default

    Quote Originally Posted by Auld Bassoon
    My simple (?) question is: is it worth registering for GST with an anticipated income level from WW at below $50k/pa?
    My simple (?) answer is : No.

    My simple (?) question to you is : Are you sure that in fact you are making a profit on your commissions?

    Do you calculate all your costs? eg. pro rata rent of your workshop, cost of the electricity, cost of depreciation on your tools, costs of your internet useage to obtain advice, depreciation on your computer, cost of your vehicle to pick up materials and deliver such commissions.

    If all the above, and many more a creative accountant can convolute , are taken into account you may well find that you are making zilch on your commissions and no tax problem arises.


    Peter.

  9. #8
    Join Date
    Aug 2003
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    .
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    10,482

    Default

    Quote Originally Posted by Two-Words
    Small businesses I deal with, which have a T/O of less than 50K don't usually register.
    I knew you would have to let fly sooner or later, you are like me and once the boiling point is reached......................look out. :eek:

    Al

  10. #9
    Join Date
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    .
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    Quote Originally Posted by Sturdee
    My simple (?) answer is : No.

    My simple (?) question to you is : Are you sure that in fact you are making a profit on your commissions?

    Do you calculate all your costs? eg. pro rata rent of your workshop, cost of the electricity, cost of depreciation on your tools, costs of your internet useage to obtain advice, depreciation on your computer, cost of your vehicle to pick up materials and deliver such commissions.

    If all the above, and many more a creative accountant can convolute , are taken into account you may well find that you are making zilch on your commissions and no tax problem arises.


    Peter.
    I love your work Pete...

    Al

  11. #10
    Join Date
    Jul 2005
    Location
    Wagga Wagga
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    145

    Default

    Quote Originally Posted by ozwinner
    , you are like me
    Please, Al, I've been sleeping really well lately, don't mess it up. :eek:




  12. #11
    Join Date
    Jan 2004
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    Over there a bit
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    Default

    Quote Originally Posted by
    In this case Steve your accountant is your best friend.
    No good can come of that.
    Boring signature time again!

  13. #12
    Join Date
    Jan 2005
    Location
    Sydney
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    1,205

    Default

    Maybe to make it worth while become a pty ltd, then contact out to your currently employer for the "all in rate" ie wage + tax + super + gst. then also bill your woodworking out from this company. deduct all expenses for your woodworking and your current job and net result if done right will be reduced income tax and GST credits from the woodworking purchases.

    I run my contracting business as PTY LTD and only draw wages on what i need to live the rest stays in the business and is taxed at business tax rates. Alot of my spending money comes from "cash" jobs on the side while the business gets deductions from petrol though to entertainment expenses (night at a pub with clients [mates]).

    Down side is takes 2 years to build up company history to borrow money from banks but now i ave a regular wage to show which resolved these issues.

    I AM NO BEAN COUNTER!!!!

  14. #13
    Join Date
    Feb 2003
    Location
    Garvoc VIC AUSTRALIA
    Posts
    11,464

    Default

    ummm, you don't need to resister if your gross is under $50k.

    But some businesses won't buy from you unless you are registered.

    If you register and then decide down the track its not worth the paperwork you can opt out and become unregistered again.

    If you are going this route just make sure you buy all your machinery while you are registered as you get all the GST back.
    Regards, Bob Thomas

    www.wombatsawmill.com

  15. #14
    Join Date
    Jul 2004
    Location
    Sale
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    68
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    Default

    Quote Originally Posted by Gaza
    Alot of my spending money comes from "cash" jobs on the side while the business gets deductions from petrol though to entertainment expenses (night at a pub with clients [mates]).

    Down side is takes 2 years to build up company history to borrow money from banks but now i ave a regular wage to show which resolved these issues.

    I AM NO BEAN COUNTER!!!!
    Gaza,

    You are quite right you are no bean counter, but the assertion that you are claiming a night at the pub with clients is straight out foolish, There are deductions for food and drink whilst travelling but entertainment is subject to FBT and not worth the effort when it comes to tax deductions. I would also suggest if the ATO had a look at you the majority of what you had written would be rejected, it shows you have no understanding of the rules. If more than 80% of your income comes from the one source you are very limited in just what you can claim, also if running two businesses and the loss maker turns over less than $20,000 you are not going to be able to claim those losses against the profitable business. If what you have written is true I would strongly suggest you seek a second opinion from another accountant before you land yourself in some very hot water. Companies do not always produce a better tax outcome!

    John.

  16. #15
    Join Date
    May 2005
    Location
    Newcastle
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    72
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    Default

    My inquiries to the ATO was that up to 20 K was ok but it depends
    What it depends on as far as I could gather was who you spoke to and which way the wind was blowing , as I was well below this I took It no further
    I'de go with the " See your accountant " advice as the tax office wont give a hard and fast amount

    Rgds
    Ashore




    The trouble with life is there's no background music.

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