ABN NUMBER

anadesigns replied:

Hi Jane

It doesnt matter what type of business u want to do or if you are simply becoming a consultant

I always think it is a good idea to have an ABN number

AngelEyesByDesign replied:

I agree with MarineMC and have pmed you on this as well.

Cheers

Bec

ExMember148 replied:

Technically, ALL consultants for all companies, require an ABN as you are basically being 'sub-contracted'.  However, having an abn doesn't necessarily mean headaches!! LOL

And basically, as a consultant, you are always doing your chosen party plan as a 'hobby' (until that magic $50 000)...........My tax agent used to laugh at me when I told him I was a party plan consultant, he said, he wouldn't waste his time on my tax returns for it!!! (cheeky boy!!)

I always advise to seek proper legal/tax advice, usually a phone call to your tax agent, or a quick browse through the ATO website.

Just my two cents worth, hope it's helped.

JanesHandmadeGifts replied:

Thanks for the information.

I will contact a tax agent and get more information.

Also wanted to know as i am a single parent i was told i had to fill in profit and loss forms and have no idea how to fill them in either lol

FM-Fragrances-Australia-World replied:

Diddo to hush's comment

RachelSaucy replied:

Hi All,

About a month or so ago I rang the tax office for advice and clarification re: tax for those in the direct selling industry.  I ended up ringing a few times as each time I was just left with more questions and still not fully understanding.... each time I rang I was advised differently by each ATO adviser!!! 

So ... I decided that if the agents at the Tax Office believe different things, so can my accountant at the end of the year and hey what happens if he puts in my tax return and the person at ATO receives it and doesn't agree with him???? 

The Direct Selling Industry is such a grey area when it comes to tax; there are no set rules to follow for individuals.

So ... I faxed off a Private Ruling Application Form NAT 13742 (available from the website) to ATO - requesting they make a ruling regarding my individual circumstances.

Since then I received a phone call advising the ATO will not be issuing a private ruling because I am not obliged to get an ABN because I will not be dealing with other businesses (other than the company I am working for).  The people whom I sell to are private individuals.  I gave various scenarios i.e. different profits I could make, having X people under me as a team leader, fundraisers etc and the answer was still the same because I am not selling direct to a business – I will be selling to the individuals and then giving “donation” so to speak to the organisation I still don’t need an ABN.  So all I need to do is keep records of everything including bonuses/other incomes I may receive from my company and at the end FY give them to my accountant along with expenses!!

I did check with the lady and said if there was no reporting system in place people in direct selling could just not tell their accountant – the lady then said "Rachel the Tax Office knows everything they have ways and means to find out"!! 

As I am not entitled to a Private Ruling I have requested a letter stating everything we had discussed and what it means to me come the end of FY - This way when my accountant does my Tax Return I know he's doing it as they've advised and I'm covering my bum so to speak.

So to get to the point of replying to this topic – if I was in any of your shoes I would fill in the form and request a private ruling, it doesn’t cost you anything (other than just printing off the form, cost of a fax or stamp) and let ATO make the decision for you – they will go two ways issue you a private ruling or write a letter advising what you need to do – Either Way ATO is making the final decision and it’s not gonna back fire and bite you on the bum at the end of FY!!!

Good luck to everyone and I hope this helps some of you.

P.s Don't expect your letter quickly - they have 28 days to respond to an enquiry in writing and they really don't post it until the 27th day!!!

Whataheart replied:

A profit and Loss form is basically all your income from sales and bonuses etc less all your expenses including product, stationery, phone, etc etc.... Your Tax Agent should be able to help you and Centrelink also have a form that lists what they want to know (keep in mind both income and expenses have an 'other' box just so they can cover their bum by giving you an opportunity to declare everything.) 

Having said that you should also keep in mind what part of your household expenses such as electricity, phone, isp, cleaning, insurance, car, petrol, food, stationery, etc etc are incured due to running your business as you can claim them as expenses.