Home – New Forums Starting your journey A Business as Second job. Do I need to apply GST?

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  • #987189
    Chris J
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    Hi Everyone,

    I have just joined here today :)

    I am preparing the online shopping mall as my second job because my wife reduces her working hours due to a baby. I am a full time officer and my salary is $85000 (paying tax with TFN). I have registered the ABN and business name (sole trade). I presume the turnover of the first year is not exceeded $75000. So I haven’t applied the GST.

    However, in my situation, do I have to apply the GST due to my salary? My wife will involve the business. It it better to change from a sole trad to a Partnership in order to reduce the tax?

    Many Thanks.

    #1161518
    TehCamel
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    turnover for the business activity is what matters for gST
    It doesn’t include your normal salary.

    operating as a partnership probably won’t have much impact on your tax.

    Personally – I’d prefer to put the online business in your wife’s name as a sole trader rather than your own.
    You are already in the higher tax bracket anyway.. it might even things out a bit
    ask an accountant though

    #1161519
    Dave Gillen – Former FS Concierge
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    Hi Chris,

    A big welcome to the forums and best of luck with your new solo venture!

    Dave

    #1161520
    affgar
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    Good work! Aiming for online as well as day job!

    GST limit is $75k I believe. Only if you are going to hit that do you need to register for GST.

    My advice … don’t register for GST unless you really have to. It is a pain & ups the workload with really no benefit.

    Good luck with it!

    #1161521
    Greg Mawer
    Member
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    Hi Chris,

    No requirement to register for GST as it is only the turnover of the business (needs to be $75K) and not your personal salary. If you sell B2B then it may be worthwhile to register for GST so you can claim back the GST credits. A GST registered business owner sees a purchase of $100 with no GST and $110 including GST as the same (so you wont lose sales over the price).

    On the structuring side, one option is to trade through a discretionary trust and distribute the income the most tax effective way at the end of each year.

    Let me know if you have any other questions.

    Regards,

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