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  • #995390
    GraceT
    Member
    • Total posts: 1
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    good evening I have a question re ABN registration . Currently I have a private company setup with a friend a year ago and we have registered an ABN for it. No activities yet as the site is still in development stage. I decided to create another website / business myself meanwhile, offering web development and online marketing service to SMEs. Do I need or is it beneficial to register a separate ABN? Also , I don’t foresee the turnover to be more than $75k this year but was thinking of registering for GST because of the GST credits. Would appreciate any feedback Thank you

    #1201616
    Dave Gillen – Former FS Concierge
    Keymaster
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    Welcome aboard Grace!

    Sounds like a separate business would be suitable so there’s no confusion about ownership and whose income it is for tax purposes. You might do that as a new company, or as a sole trader, with a separate abn. Hopefully one of our accountants can help you with any finer details.

    Registering for GST could be beneficial if you’ve calculated the approximate amount you’ll claim back in GST and it outweighs the extra admin costs and/or the extra hassle of submitting your BAS every 3 months.

    Good luck!
    Dave

    #1201617
    Easysmb
    Member
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    Hi There,
    ABN means a separate legal entity. For your personal business, is it part of your business with your partner? if not, you better register with a new legal entity, either another Pty Ltd or simply your sole trader entity.

    GST: for income under $75K, you have options to register GST or not. If you want to claim GST credit back, you need to register GST and also collect GST on your income. You have option to register annual GST first.

    Good luck.

    #1201618
    Divert To Mobile
    Member
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    Hi Grace,

    I think you would be better having a separate ABN. As David said, there is no confusion about ownership of the new business in the future – its all yours. As for GST claiming credits is a good idea. You could register for GST claim the credits on all the startup costs, then later if you find GST is too complicated and your turnover is below the 75k threshold you can unregister.

    best of luck and welcome to the forum

    Steve

    #1201619
    2nite
    Member
    • Total posts: 28
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    Easier to start right and register for ABN and gst. After the first year of trading if you’re projections year on year will be under $75k, you can remove it. Without gst registered, will won’t be able to claim any gst either.

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