Small Business

[JohnBuoy]

G'day all,

Looking at starting a small business to supplement my income. Just a small online deal.
Just wanting any information from anyone who owns their own business regarding tax and gst and that good stuff. I've read through the ATO website but cannot make heads nor tails of it all :rough:

Cheers
JohnBuoy

[cheaterparts]

prob better to chat to an accountant - if you go down the GST path you need to reg for it and it

but the bean counters can tell you the best way around it all

[Fish-cador]

my experience from a while ago. Please check new rules if you can. They may have changed. This is what I knew and should not be taken as a professional advise.

I used to have ABN but I have suspended it when I stopped selling. I also dreamed big on online business but got clubbered by cheap Chinese imports.

> Having ABN will allow you to claim GST credits (i.e. not pay GST on your inventory purchase) BUT, if you claim GST exemptions, you will be required to pay GST on your sales.
> If your annual turnover is over $50K, you MUST pay 10% GST. Therefore, you should charge GST. You can only charge GST if you have ABN. "Turnover" is the amount of transactions you make. This equates to "what you received as payment"
> Ebay and Paypal submits all online transactions to ATO.
> you must declare your income on your tax return if you plan to run as a business
> you may not declare your income if you run your thing as a hobby. There may be thresholds as to what is a hobby and what is a business. Please check.

Please consult an accountant or tax professionals for more accurate info and advise

[SFP Guy.]

Hi JohnBuoy,

Like Cheater said, go chat to an accountant, no offence FC!

The rules change all the time and if your serious about it, you'll need an accountant anyway.

Maybe there's an Accountant Victoria forum out there where all the boffins get together and share info!

Cheers,

Cam.

[Fish-cador]

I once held an ABN and my info can be a good starting point......
:doh1: :doh1: :doh1:
didn't I say "consult an accountant..."
:doh1: :doh1: :doh1:
No offense SFP but looks like it is true that people only get the message from anything they read if it tickles their ...... :haha2: :haha2: you just repeated what we already said before. Your signature indicates that you are at least tied to an online business. Got any tips to give?

[JohnBuoy]

Thanks for everything guys.

My mate is an accountant so i will chat with him when i see him next.
FYI i wasn't on here for concrete advise just wanted help in deciphering what was being said on the ATO website.

cheers
JohnBuoy

[shazzagraz]

It is free to register for an ABN, anyone can do this and trade as a sole trader. You don't have to register a business name if you are a sole trader, you can simply use your own name to trade under. However if you want a business name, you can apply for one, pay a small fee and link it to your ABN.
if your turn over in any financial year is more than $75k you must be registered for GST. When registered for GST you must charge GST to your customers and you can also claim the GST on your expenses, without being registered for it you cannot claim nor charge it. Even if your turn over is less than $75k you can still register for GST if you want, there are benefits but with it also comes the hassle of having to a BAS statement every quarter.
Talk to your accountant because often small businesses can run as a hobby, in which case you don't need to have an ABN and you also don't need to claim any income from that business, it is pretty much tax free income. Check with your accountant though to see if what you are planning to do would qualify as a hobby. Chances are slim, but worth looking into. I have a family member that does this, selling beauty products from home.