Calling out for advice with those who have an ABN

[Trennaa]

Okay, here's the deal.

I am going to be applying for an ABN to register a business (under my own name, not a business name).

My business is going to be for Mobile Entertainment (DJ for private functions - but legitimately).

I already know to go legitimate, I will need a number of licenses - PPCA, ARIA, to name a couple. All of which have expenses (some annually, some quarterly).

I will also need insurance(s) in order to operate for Private Functions - Public Liability for example.

My question/s:

• If I register for an ABN, and DONT earn income on the ABN, so I still need to complete BAS statements?
• If I have an ABN, and obtain these licenses and insurances (lets say $500 worth in total), I understand I can claim these back as business expenses, as well as equipment expenses etc, however, how does this go when I may not earn an actual income through the business?

I will probably have more questions as time goes on. I understand perfectly well I should obtain advice from a taxation accountant, or a business accountant, and I will probably have someone acting on my behalf down the track, but this is (what I would consider) pretty general information I can gain over a forum, rather than paying for an accountant at this stage.

Cheers y'all!

 

[Big-Al]

it's been a while and don't know exact figures but from what I remember your business needs to turn over more than $60,000 or more before you are required to complete a bas statement.
you need to complete a yearly tax statement for your business like you would as an individual.
the ATO website should have a fair bit of information for you.

 

[mpower]

just talk to your accountant they will tell you everything - from memory (been ages since I let my ABN go idle) you do have to complete BAS all the time - either way accountant is the go, they do this stuff day in day out and know all the rules.

just concentrate on your stuff and let them do accounting!

 

[Troy711]

You only need to complete a BAS if you register for GST. You only need to register for (and claim) GST if your business turns over over a certain amount. It used to be $60K annually however it may have gone up. By the sound of it you're not going to turn over a great deal so don't bother registering and you won't have the extra hassle. This just means that when you give a customer an invoice you CAN NOT add GST onto the sales figure.

 

[accentstencil]

As said, you must register for GST if you run a business or enterprise and your GST turnover is $75,000 or more ($150,000 or more for non-profit organisations). You only register once for GST, even if you operate more than one business. You must register within 21 days of reaching the threshold. You may choose to register if your GST turnover is below the threshold.

If you provide taxi travel, you must register for GST regardless of your turnover.

 

[Trennaa]

Excellent. Thanks for the info guys.

I'm anticipating on earning no-where near this threshold. My business venture is much much more for hobby purpose than actually running for income. If I could (legitimately) perform as a DJ for private functions (halls, backyards, football clubs, etc etc etc) without licenses and insurances, I would. However ultimately I do want to be professional, tick all the right boxes and represent myself the right way (set myself a notch above the rest I guess you could say). In order to obtain all these licenses and insurances - I must have an ABN.

I'm throwing this out there that my financial year income probably won't breach say $2-3,000.00 - this is whole income, not profit.

 

[franklinfrog]

Register and get an ABN as a Sole Trader. Forget GST, forget BAS, only pay tax on profit and it's all part of your personal tax return each year.

 

[Trennaa]

Without trying to sound like an asshole - but wouldn't personal tax, and tax to do with the ABN/Business be seperate?

I'm planning on calling ATO today to gain an email address to address some queries.

 

[mpower]

Without trying to sound like an asshole - but wouldn't personal tax, and tax to do with the ABN/Business be seperate?

I'm planning on calling ATO today to gain an email address to address some queries.

talking to the ATO is like pulling teeth, talk to your accountant - the money will be money well spent.

The question you've just asked about tax makes it obvious that you need a professional to give you financial advice.

 

[rambunctious]

Okay, here's the deal.

I am going to be applying for an ABN to register a business (under my own name, not a business name).

My business is going to be for Mobile Entertainment (DJ for private functions - but legitimately).

I already know to go legitimate, I will need a number of licenses - PPCA, ARIA, to name a couple. All of which have expenses (some annually, some quarterly).

I will also need insurance(s) in order to operate for Private Functions - Public Liability for example.

My question/s:

• 
  [1]If I register for an ABN, and DONT earn income on the ABN, so I still need to complete BAS statements?
  [2]If I have an ABN, and obtain these licenses and insurances (lets say $500 worth in total), I understand I can claim these back as business expenses, as well as equipment expenses etc, however, how does this go when I may not earn an actual income through the business?

I will probably have more questions as time goes on. I understand perfectly well I should obtain advice from a taxation accountant, or a business accountant, and I will probably have someone acting on my behalf down the track, but this is (what I would consider) pretty general information I can gain over a forum, rather than paying for an accountant at this stage.

Cheers y'all!

Hate to say this but a lot of the answers so far are totally incorrect.

I have numbered your questions so

1 Yes

2 Correct, all costs to run a Business are claimable(accountants fees,insurances, phone, computer, printer, advertising, vehicle costs, fuel etc etc)and Capital Purchases ( equipment, speakers, purchase of vehicle etc) are depreciated each year. The Business loss if any, may be able to be written off as a loss against any other income you have, providing you have income above $18200 after expenses.

As already stated you don't need to register for GST until you reach a turnover of $75000 in any year ie Turnover is the amount of payments made to you.

Do not be afraid to talk to the ATO because on my past experiences they are terrific people to deal with and are there to help you.

You can register online for an ABN in your own name.

I still have an ABN but I do not submit BAS Statements due to no longer carrying on a Business.