benefits of an ABN number???

[bundy380]

I'm wondering if i would benefit at all by having an ABN number or registered business name. I want to try and get work for the company i currently work for on wages after hours and on weekends on a contractor basis working from my garage doing machiney maintenance and repairs. It would only be small annual income ie estimating $5000-$10,000????
I would appreciate any advice
Thanks

[Tracey Anne]

If you're working as a contractor and don't have an ABN, the hiring company legally have to withhold tax (at the top marginal rate from memory) from any payments they make to you.

Also if you decide to expand your after hours business to other clients, having an ABN and a registered business name will make you appear more professional.

I know of many people who will not hire without an ABN.

[King]

For the 15 mins it takes to apply for one online, why wouldn't you?

The tax reason is also the govt carrot.

[Ketobog]

Remember that u can't earn more than 80% of ur income from the one source with an ABN. Therefore u would need to be contracted to various jobs not just get paid by the same employer business/company. There are exceptions but not completely sure what exactly.

By the sounds of it though in ur case it wont really matter as ur only expecting to earn $5000- $10000 and im assuming that's not more than 80% of ur yearly salary.