ABN numbers?

secrets replied:

Hi Nett,

You are best to get advice from your accountant regarding this, however, if you are a consultant for the PP you work with, then an ABN in your name (sole trader) will do the trick.  The only time you would need to register an ABN as a company is if you own a PTY LTD.

Hope this helps,
Jo

Marty replied:

This is a topic that has been visited many times.

I have made enquiries with both my accountant and the Tax department, if you do something ONCE it is a hobby any more it ceases to be a hobby, your PP should have told you that, you should register as a sole trader and wont have to collect GST unless you think your sales will be over $75,000 although this could also not be correct as my accountant said that it is turn over of $50,000 (in the old days) I bought a ute so there was $25k out so it counted. anyway you should get professional advice regardless of what I or anyone else here says

Marty

nett5980 replied:

Hey Guys.

Thank you for your replys.  I am not with actually joined to a specific party plan, so that is why they didn't tell me.  They just allow me to purchase products at a discount rate and the rest is up to me.  The reason I asked as I have other suppliers I also use, and one wants an ABN, so I didn't know whether I need a sole trader one, or a company one.  I will ask a tax agent to be sure.

thank you, Annette

Emma replied:

Hi, I am relativly new to PP area but have a GREAT accountant and I have hesitation in asking anything.

I thought i would post my question to him (direct to the PP area) and it may help some.

Question.....
I have read that I can earn up to $75000 a year on it if it is classified as a hobby and not an income etc? I don’t think that I will be selling anywhere near that amount of $ but you never know I guess.

Answer......
no this limit is for gst only, if you earn more than $20k in turnover per year under this business or make a profit then its classified as a business

chocolateaddict replied:

I think this is the new mystery of the universe! lol

Every tax agent/accountant/ tax dept person seems to have a different answer to the same question.

(sorry no idea how to quote here) I was told pretty much this too..

I have made enquiries with both my accountant and the Tax department, if you do something ONCE it is a hobby any more it ceases to be a hobby.

So, we are all running small business's and all need to be declaring to the ATO. I just need to find a local accountant that understands PPing. :)

donna0469 replied:

Am I in business?

Do you ever wonder whether your hobby or activity is in fact a business?

There is no single factor to determine whether you are running a business, however there are some questions you can ask yourself to help you decide:

• Does your activity have a significant commercial character, for example is your activity commercially viable and is it carried on for commercial reasons?

• Is there more than just an intention to engage in business?

You need to have made a decision to start business and have done something about it. If you are still setting up or preparing to go into business, you might not have started business just yet.

 

• Do you intend to make a profit or genuinely believe you will make a profit, even if you are unlikely to do so in the short term?

• Is there repetition and regularity to your activity?

• Businesses usually repeat similar types of activities, although one-off transactions can constitute a business in some cases.

• Is your business similar to other businesses in your industry and is the way you operate consistent with industry norms or other businesses in your industry?

• What is the size, scale or permanency of your activity? Is it consistent with other businesses in your industry? Is it sufficient to allow you to make a sustainable profit?

• Is your activity planned, organised and carried on in a business-like manner, for example do you use business records, trade from business premises, have licences or qualifications or use a registered business name?

http://www.ato.gov.au/corporate/content.asp?doc=/Content/00150830.htm

CMmumoftwo replied:

Its all so confusing, and if i was ever really ment to then I guess Im in trouble.

but I hardlymake anything let alone 75 000