Thread: ABN registration and GST?

Originally Posted by Lignum

Exactly the same here. Their is no way id recomend what two words says about using it interest free. Be safe and bank it straight away.

Guys, you have misunderstood my point. I'm not for one moment suggesting that you go and spend the GST ! It sits in the general account which may or may not be in overdraft. It means that there could be say $40,000 in there as you get near the end of the quarter. You may have a credit balance of say $30 grand at that point which means the government money is saving you a lot of interest. Even if you are still in overdraft, it benefits the company the same way by whatever amount is in there.

I never said spend it.

I knew what you meant.
We have what Westpork call a Tax Management Account.
It earns interest & doesn't have any fees if you don't use it too much.
I tip as much spare cash as I can in there bearing in mind that if I put too much in & have to take some back to pay bills then I risk being charged for it.
When it comes time to pay BAS, we just Bpay it straight out of that account.

Thanks for all the information guys!

Much appreciated

One ABN, no GST registration. Easy

Unless making over $50k there is no reason to register for GST, unless you are perhaps stating a business from scratch and going to be spending a heap on machinery etc. In this case it would be worthwhile registering so that you can claim back the GST, even if further down the track you let the GST registration lapse.

Buzz

If you start a small business and you carnt turn over 50k in your first year, is that concidered a failure? i would think so. So for a hobby like Steves, no. But starting a business, yes.

Originally Posted by Lignum

If you start a small business and you carnt turn over 50k in your first year, is that concidered a failure? i would think so. So for a hobby like Steves, no. But starting a business, yes.

Have to agree there Lignum. As a hobby issue, revenue is just a minor consideration. If it were a business venture, then I wouldn't be starting from where I am anyway

Originally Posted by Auld Bassoon

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!

Can't answer the question but can tell you what happened in my case....
I registered as a sole trader (ABN, etc) to operate a small niche business on behalf of our local hobby club. Total turnover per annum was less than $20k, so I was told I did not need to do BASs or anything like that, just manage the shop's books in the supplement part of my tax return.
Then with no wraning (letter) from the .gov agency, I found out they'd killed off my ABN since I wasn't trading. - I guess they figured I wasn't trading because my ABN wasn't linked to any BASs - but I was still under the threshold to submit them... with my ABN killed off, I lost access to my wholesaler, and the school science club could no longer purchase from me to help them with their supplies.

Just be aware that unless things have changed, your ABN may not remain yours if your business is small.

HTH Des

Always a good idea to look at the date of a thread before replying, this thread is 6 years old!

Also, Auld Bassoon is long past caring about GST and BAS statements, he passed away some years ago.