Resources...
What's new...
More topics...
Opportunities...
ABN Numbers.......again :)
Discussions : General discussion : ABN Numbers.......again :)
Snazza wrote:
Hi All,
Sorry I couldnt find the old thread on ABN's in my hurry and enthusiasum to write this post LOL!!
Just wanted to let people know I have just spoken in depth to someone at the Taxation Department regarding Party Plans and ABN's
The Person I spoke to told me of a new Tax Tool that has been implemented for people to see if they are entitled to an ABN or not. Here is the link
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ABN_Entitlement.xr4&go=ok
You just go through the steps and at the end it will tell you if you are entitled.
Now the other thing he told me was that anyone selling should look into this tool as you are NOT considered a Hobby if you do it for other than private purposes.
I explained to him that there are quite a few confused people on the site i mix on and he advised to share that above link. I had been an Avon rep many years ago and so i was curious to know if they also were required to have an ABN and he said yes they are if they are selling door to door and not just doing it for private use. He also advised that if you didnt have an ABN the company that pays your commission is required to withihold more tax and in effect pay you less than the commission you feel you have earnt.
Hope this helps someone.
Snazza
TAS replied:
Thanks so much have always wondered about this will look into it.
magic1 replied:
I actually stumbled across that last night and when i answered the questions it confirmed that i am eligible to apply for an ABN, so i did print it, so I guess i just have to apply on line, is that right.
Ladywytch replied:
LOL
I just 'sacked' my accountant over a huge argument because I was trying to convince him that my party plan was a business not a hobby. Seemes stange to me that others are going the opposite way.
M
Snazza replied:
Yes thats right Magic1 you can apply online for your ABN.
And LW yep seems to be alot of confused people out there. I know my sister does Avon and was told by her accountant that she wasnt making enough and consider it a hobby. An yet this tax guy today says if you are not doing it for private use then it is not a hobby but an income. So ABN is required.
Snazza
FoodDude replied:
Just thought I'd chuck in my two cents worth as well..................
ABN ..... required if you are running a business (ie want to claim all the perks of running a business)
REGISTERED FOR GST..........required if turnover more than $75,000 p.a., or if you wish to claim GST as a business expense.
REASON FOR NOT QUOTING AN ABN (IF YOU ARE A SUPPLIER, IE IF YOU RECEIVE COMMISSION FOR SELLING GOODS YOU ARE A SUPPLIER).............EITHER (A) the supply is made by you in your capacity as an individual, and in the course of an activity that is a private recreational pursuit or hobby. (b)the supply is made by you in your capacity as an individual and the supply is wholly of a private or domestic nature for you (c) you (or the supplier that you represent) is a non-resident who is not carrying on an enterprise in Australia. (d) the whole of the payment that you will receive for the supply is exempt from income tax or (E) you (or the partnership you represent) have no reasonable expectation of profit or gain from the actiuvity undertaken and consider that you (or the partnership that you represent) do not meet the definition of enterprise for tax purposes.
If you fall into none of the above categories why not get yourself an ABN number. It costs you nothing; you are not required to do any more work because you have it. You can de register it if you go out of business ( ie you are not doing party plan anymore). The whole $75,000 turnover thing is related to whether or not you are registered for GST not whether or not you have an ABN.
BTW - Perks of having an ABN (went to the paint shop the other day to buy paint for our house. Asked if there was a trade discount. Told yes, if you quote an ABN number. Got my paint for 25% less than if I had bought it straight over the counter. This does not mean that I claim paint as a business expense (but it does mean that I get the perks of conducting a business to business transaction instead of that as a retail customer.
Note : Check your terms TURNOVER>>>>this is the amount of sales(or commission) that you put through your business. PROFIT>>>>>this is the money you make if your sales(or commission) are more than your expenses.
Cheers (hope I haven't opened the can of worms and let the little blighters out !!!!)
Melx
DanielleWalker replied:
Oh.. I just assumed that all Party plans were like Intimo, that you are required to have your own ABN before signing on as it IS your own business. Work as much or as little as you like, choose your hours; you can make extra pocket money or a fortune you decide.
Danielle
Asterix replied:
Well, all this confusion..Personally... the best thing to do. is to ask your company.
The CEO. of the company. as before you sign up you should know exactly what you are in to whether you will have ABN. or not...and how much you have to earn per year to pay tax. Whatever problems do you have and confusion . all question will be answered by your company director. or founder of the company...
Stay beautifull,
Liddy
Marty replied:
But the CEO of a company might not know about ABN's. If a CEO ays you dont need one and you dont get one and then the ATO comes knocking guess who get the fine or jail term, NOT THE CEO