Home – New Forums Starting your journey ABN for Freelance Graphic Designer

  • This topic is empty.
Viewing 15 posts - 1 through 15 (of 22 total)
  • Author
    Posts
  • #978320
    crease
    Member
    • Total posts: 6
    Up
    0
    ::

    Hi, im just new to the forum and a bit puzzled so hopefully you guys can help.

    Ive been living Australia for 2 years working as a Graphic Designer, either in a fulltime job or through an agency who hire me out.

    Im am currently back doing contract work mainly through the agency but would like to do freelance jobs myself. Im aware that I need an ABN to do this however whenever I try to register for one It keeps coming back that I am not entitled based on the questions I answered.

    Ive been doing a lot of reading online and everything regarding freelance graphic designers points out that you must have ABN yet I keep being told im not eligible.

    I tried calling the Tax office but they told that they cant really advise me on what I should do.

    Im hoping maybe someone on here preferably a designer can help shed some light on this.

    Thanks.

    #1106188
    IncredibleCo
    Member
    • Total posts: 406
    Up
    0
    ::

    When you register for ABN I believe one of the questions is, do you have a website? Just ticking that should be enough for an ABN.

    #1106189
    JacquiPryor
    Member
    • Total posts: 2,344
    Up
    0
    ::

    I believe that you are eligible as an “Enterprise” which includes a business and other commercial activities so make sure you say ‘yes’ you are an enterprise if this question comes up (I know the word may not be the one you automatically think of for freelance work)… If you are asked whether trying to get an ABN for a hobby say no.

    When you apply, do you get any more information about why you are not eligible? My hunch would be to do with the above, but, if you have any further information please feel free to share.

    #1106190
    ntgd
    Member
    • Total posts: 36
    Up
    0
    ::

    Did you anwser Yes to carring on a business?
    I know people thinking of starting business and anwser No to that question as they are only thinking to start, this will lead to not able to register an ABN.

    #1106191
    crease
    Member
    • Total posts: 6
    Up
    0
    ::

    Unfortunately its not as simple as that. Below are the questions they ask

    — Have you started trading as an enterprise/business?
    — Have you undertaken sufficient activities to establish an enterprise?
    — Are you applying for an ABN to operate as a contractor?
    — Will your work agreement allow you to pay another person to perform work on your behalf?
    — Will you be responsible for providing heavy machinery to undertake your business activity?
    — Will the payments you receive be based on a quoted price that you provide to persons making use of your services?
    — Will you be responsible for the cost of rectifying any defect in the work you perform?

    Having tried out the Entitment tool on the website it appears the questions that are throwing up that I am not entitled are:
    Will your work agreement allow you to pay another person to perform work on your behalf?

    Will you be responsible for the cost of rectifying any defect in the work you perform?

    I had initially selected no to both of these, as I didn’t feel they applied to me but if selected yes it says I am entitled. I guess this is where im not entirely sure what the correct answer is and maybe its something a freelance designer can advise on.

    #1106192
    crease
    Member
    • Total posts: 6
    Up
    0
    ::
    ntgd, post: 117857 wrote:
    Did you anwser Yes to carring on a business?
    I know people thinking of starting business and anwser No to that question as they are only thinking to start, this will lead to not able to register an ABN.

    I answered No but answered yes to : Have you undertaken sufficient activities to establish an enterprise?” which comes up if you answer “No” to “Have you started trading as an enterprise/business?”

    #1106193
    ntgd
    Member
    • Total posts: 36
    Up
    0
    ::

    Anwser Yes to these:
    — Have you started trading as an enterprise/business?
    — Have you undertaken sufficient activities to establish an enterprise?

    You can consider yourself started already, just no customer/contract just yet

    #1106194
    crease
    Member
    • Total posts: 6
    Up
    0
    ::
    ntgd, post: 117870 wrote:
    Anwser Yes to these:
    — Have you started trading as an enterprise/business?
    — Have you undertaken sufficient activities to establish an enterprise?

    You can consider yourself started already, just no customer/contract just yet

    Ok thanks, wasnt sure if Im considered an enterprise and obviously I want to be 100% that all the information I provide is true and correct.

    But is that not putting the horse before the cart if you’re are trading i.e doing work but you dont have an ABN, surely you need the ABN before you can trade?

    #1106195
    ntgd
    Member
    • Total posts: 36
    Up
    0
    ::
    crease, post: 117871 wrote:
    Ok thanks, wasnt sure if Im considered an enterprise and obviously I want to be 100% that all the information I provide is true and correct.

    But is that not putting the horse before the cart if you’re are trading i.e doing work but you dont have an ABN, surely you need the ABN before you can trade?

    You need to specific a trading start date on your registration, which can be back dated even.
    For example you can start today and register the ABN as of today, once you lodge an application, even you don’t have the ABN straight away, you are consider registered. If somehow you got work, you just need to put “ABN Pending” where an ABN normally appears on all your public document like invoices, letterhead …etc until you got the offical ABN.
    There isn’t much too worry about in your situation.

    #1106196
    crease
    Member
    • Total posts: 6
    Up
    0
    ::

    Ok great, thanks for clarifying that. Just got worried as it clearly states any misleading information could result in being prosecuted, it seemed safer to answer no than yes if I wasnt sure.

    #1106197
    ntgd
    Member
    • Total posts: 36
    Up
    0
    ::

    I know what you mean. Those questions can be confusing for people. You are not the only one.
    Hope you get some new contracts soon.

    #1106198
    freewebhosts.com.au
    Member
    • Total posts: 11
    Up
    0
    ::

    How did you go with it? I registered my ABN awhile ago don’t remember having that many questions

    #1106199
    crease
    Member
    • Total posts: 6
    Up
    0
    ::
    ntgd, post: 117878 wrote:
    I know what you mean. Those questions can be confusing for people. You are not the only one.
    Hope you get some new contracts soon.

    Thanks.

    Got it sorted eventually and now have my ABN.

    Will not doubt have more questions regarding Tax pretty soon!

    Thanks again.

    #1106200
    ntgd
    Member
    • Total posts: 36
    Up
    0
    ::

    Glad you got your ABN.

    Good luck with your business.

    You will need to find an accountant that you can have a good working relationship that will understand your business and grow with you not just help you prepare account and lodge forms.

    It might seem like you are not doing much at the moment, but it is still important to align yourself with good adviser.

    I work with SMEs with financial difficulities than ended up in insolvency actions and help them to re-establish in business again for over 7 years, it is quite shocking that how many accountant don’t advise client and how many client don’t ask for advise as well.

    #1106201
    WolfD
    Member
    • Total posts: 10
    Up
    0
    ::

    Hi guys, new here… great forum.

    Instead of opening new topic I will continue here, if that’s not a problem.

    OK, I have few question re “graphic design freelance”, ABN, Company name etc that hve not been answered here.

    Here is the situation, currently working full time and wish to continue on a full time basis but I would like to get an ABN to get some work on the side.
    1st question – Can I have a Business Name instead of my name registered and have ABN for that (eg “planetXdesign” instead of “JohnJohnsonDesign”). As I said I want to stay employed full time so what’s the thing with ATO in regards to that. I mean would there be any implicaction for my work, beacuse it’s company/business registered.
    2nd how often do you have to pay tax on ABN if it’s business name. I don’t even know when my first customer will come?
    3rd what to register first – ABN or business name or vice versa or it does not really matter. What about bank account for business name/ABN, can I just use my personal account which is on my name or do I have to open one under business name?

    OK, there is plany more to come, this should be enough for now :)

    THANKS for any help.

    Do you “Crease” or anyone else have any tips (you recently went through prcedure). Cheers.

Viewing 15 posts - 1 through 15 (of 22 total)
  • You must be logged in to reply to this topic.