Thanks: 0
Likes: 0
Needs Pictures: 0
Picture(s) thanks: 0
Results 1 to 15 of 40
Thread: ABN registration and GST?
-
30th June 2006, 06:32 PM #1
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!
-
30th June 2006 06:32 PM # ADSGoogle Adsense Advertisement
- Join Date
- Always
- Location
- Advertising world
- Age
- 2010
- Posts
- Many
-
30th June 2006, 06:40 PM #2
'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 aboutBoring signature time again!
-
30th June 2006, 06:42 PM #3Retired
- Join Date
- May 1999
- Location
- Tooradin,Victoria,Australia
- Age
- 73
- Posts
- 11,918
In this case Steve your accountant is your best friend.
-
30th June 2006, 06:47 PM #4Member
- Join Date
- Feb 2005
- Location
- Kingsgrove NSW
- Age
- 73
- Posts
- 72
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
-
30th June 2006, 07:00 PM #5UnPlugged
- Join Date
- Jul 2005
- Location
- Wagga Wagga
- Posts
- 145
Small businesses I deal with, which have a T/O of less than 50K don't usually register.
-
30th June 2006, 07:07 PM #6.
- Join Date
- Jul 2005
- Location
- Victoria
- Posts
- 5,215
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%
-
30th June 2006, 07:35 PM #7Deceased
- Join Date
- Jun 2003
- Location
- ...
- Posts
- 7,955
Originally Posted by Auld Bassoon
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.
-
30th June 2006, 07:37 PM #8Registered
- Join Date
- Aug 2003
- Location
- .
- Posts
- 10,482
Originally Posted by Two-Words
Al
-
30th June 2006, 07:39 PM #9Registered
- Join Date
- Aug 2003
- Location
- .
- Posts
- 10,482
Originally Posted by Sturdee
Al
-
30th June 2006, 07:41 PM #10UnPlugged
- Join Date
- Jul 2005
- Location
- Wagga Wagga
- Posts
- 145
Originally Posted by ozwinner
-
30th June 2006, 08:07 PM #11Originally Posted byBoring signature time again!
-
30th June 2006, 08:15 PM #12Hammer Head
- Join Date
- Jan 2005
- Location
- Sydney
- Posts
- 1,205
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!!!!
-
30th June 2006, 10:03 PM #13
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.
-
30th June 2006, 10:13 PM #14Originally Posted by 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.
-
30th June 2006, 10:22 PM #15
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
RgdsAshore
The trouble with life is there's no background music.