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James Millar
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shaunthomson, post: 210189 wrote:

I’m paying a singer to record vocals on a demo song for me.

She doesn’t have a business ie she isn’t a session muso – she’s just employed in hospitality, so she can’t apply for an ABN so she can invoice me.

Is it ok for her just to write a receipt out for me so I can claim the service as an expense?

Thanks for your time and help.

Generally there is a requirement to withhold 49% on any payments made to another business if an ABN is not quoted. The obvious exclusions here are (a) if they make a signed statement to you that these activities are a private non business hobby / pursuit or (b) they are under $75 each.

Its not technically compulsory to have an ABN but it is practically very hard to operate without one unless you are happy receiving only 51% of your income.

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