7 {{ upvoteCount | shortNum }}
7 {{ upvoteCount | shortNum }}

Offline Work and ABN

by sjohn
6 replies
In Australia, to be able to do offline work for clients, is it necessary to first register an ABN?
#abn #offline #work
  • Profile picture of the author tryinhere
    Originally Posted by sjohn View Post

    In Australia, to be able to do offline work for clients, is it necessary to first register an ABN?
    It costs nothing to register a abn in your own name and can be done on line, but your best bet is to speak with your accountant in regards your tax set up, hobby / business standing.
    Signature
    | > Choosing to go off the grid for a while to focus on family, work and life in general. Have a great 2020 < |
    {{ DiscussionBoard.errors[2976749].message }}
  • Profile picture of the author Bane
    Originally Posted by sjohn View Post

    In Australia, to be able to do offline work for clients, is it necessary to first register an ABN?
    Arguably you don't NEED one first, but if you don't have one, the tax you have to be setting aside is quite high (the highest bracket).
    Signature
    {{ DiscussionBoard.errors[2976967].message }}
    • Profile picture of the author sjohn
      Originally Posted by Bane View Post

      Arguably you don't NEED one first, but if you don't have one, the tax you have to be setting aside is quite high (the highest bracket).
      I would have thought the tax bracket depends on your total taxable income.
      (Income from Offline work + Income from day to day job)
      Or is it that you fall in the high tax bracket if you do offline work regardless of what you're earning?
      {{ DiscussionBoard.errors[2980986].message }}
      • Profile picture of the author Chooie
        According to the ATO

        When the supplier does not have an ABN:
        • the price includes goods and services tax (GST), you cannot claim the GST input tax credit for that supply.
        • the total payment for the goods or services is more than $75 excluding any GST, you will have to withhold 46.5% of the payment and pay it to the ATO.

        Basicly your client will have to send 46.5% of your fee to the ATO if you dont have an ABN. None of your clients will want to do that so they wont pay you until you can supply an ABN.
        {{ DiscussionBoard.errors[2987743].message }}
        • Profile picture of the author AndrewCavanagh
          Just apply for an ABN number.

          It's free and you can do it under your own name (you don't need a registered business name).

          Not having an ABN number doesn't stop you from talking to business owners and even getting paid upfront (you can tell them you'll email them your ABN number. No one carries one around with them anyway so that's not going to be seen as unusual).

          If you want tax advice you should see an accountant for more detailed recommendations but none of that should stop you from talking to business owners.

          Kindest regards,
          Andrew Cavanagh
          Signature
          Old School Copy Like This Is BACK & Converting Like Crazy!
          {{ DiscussionBoard.errors[2988273].message }}
  • Profile picture of the author krzysiek
    So, to make this clearer for myself (using the knowledge in these forums) the service we charge them in obviously inclusive of GST and thus we must deduct that from the profit, as well as the income tax (depending on which bracket we are in)?

    However, for local businesses - I could see how they could *potentially* pay by cash - if you know what I mean. But then if you do it that way, they can't really claim it as an 'expense' and thus they would not be willing to do it for cash in hand type of jobs. Anyone have any views? It is not my intention to rort the system, just putting out some ideas I have.
    {{ DiscussionBoard.errors[2988607].message }}

Trending Topics