Home Forums Starting your journey ABN and tax return when no activity

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  • #975690
    EmbalmSkincare
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    Hi everyone,

    I apologise if this subject has been raised before. I tried to use the search but everytime I enter ABN it comes back with no results, which is actually odd as I know there are posts and threads about ABN’s.

    Anyway, I was wondering if I need to file a tax return if I have no business activity. I want to register my domain name to start building on my website and noticed that I do need an ABN number for a .com.au domain.

    Originally, I wanted to leave the ABN to last but it looks like I gotta get one now.

    Can I just have an ABN number with no activity? I know that at some stage, the ABN can be taken off me when there is no activity for some time.

    Thank you in advance!

    Regards,
    Mel

    #1075897
    Camera Chick
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    Fingerfood, post: 95719 wrote:
    Hi everyone,

    I apologise if this subject has been raised before. I tried to use the search but everytime I enter ABN it comes back with no results, which is actually odd as I know there are posts and threads about ABN’s.

    Anyway, I was wondering if I need to file a tax return if I have no business activity. I want to register my domain name to start building on my website and noticed that I do need an ABN number for a .com.au domain.

    Originally, I wanted to leave the ABN to last but it looks like I gotta get one now.

    Can I just have an ABN number with no activity? I know that at some stage, the ABN can be taken off me when there is no activity for some time.

    Thank you in advance!

    Regards,
    Mel

    Having just walking in from the accountant, I would say that I doubt you would have to file a return. If you are a sole trader, then any income from your business need to be recorded, but as you have no income, you dont have to do a separate tax return. I would think.

    But just in case , better call an accountant or even better still, I hate to say it but call the tax line. They are super helpful and you can call them on 132866 8 am to 6 pm

    #1075898
    MattR
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    Short answer no, if you’re a Sole Trader and you didn’t earn income, then “No” to doing the Business Schedule in the Individual Tax Return.

    Longer answer Yes. If you had no income, but you did have activity, such as incurring expenses in the setup of the business, (e.g stationery, phone, travel), then you may want to do the Business Schedule to record the loss. However, the loss is most likely not able to be used that year to offset other (personal) assessable income as it will fall under the Non-Commercial Loss rules – in essence, you are noting for future use against future assessable business income.

    #1075899
    EmbalmSkincare
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    I have decide to use my husband’s ABN to register my domain. Spoke to my accountant and he advised I need to lodge a tax return when I have an ABN and I won’t be having any kind of business activity for a while so I might safe me the hassle for a bit. Can still register the ABN if a big cost comes up.

    I have noticed that crazydomains gives you the option of business or personal website which seems to me that an ABN isn’t necessary to register a .com.au domain. Since I selected business, I can’t be sure where the registration would take you if you select personal but the option seems to be there.
    I know that the net registry didn’t give me that option.

    Been reading lots on this here in the forum and just thought I should mention it.

    Regards,
    Mel

    #1075900
    scikids
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    I’m not an accountant — this is just from my own experience.

    You get three years to do nothing after you register an ABN. Registering an ABN to get a domain name is actually really easy. You don’t need an accountant. You can do it all online by yourself. Once you have an ABN, and if you have no activity (and I mean zero), you don’t have to file a tax return. If you use an accountant, just let them know this. If you have a few dollars, you let them know and they’ll see that it’s virtually nothing and leave you alone. You don’t get taxed on any of it.

    The tax office gives you three years to have no income with the ABN, then they’ll suspend it for inactivity. If in subsequent years, you start up again and the invoices start getting paid, you contact the tax office and they’ll reinstate the same ABN you had before that was suspended.

    :)

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