Hello, looking for some advice please. I have 2 businesses,
1. A trust as an entity (I am sole beneficiary) Earning 60k
2. extra business (name) under the same abn. Earning 30k
The entity is currently not registered for gst.
For gst registration purposes, am I required to combine the incomes (ie., $90) which is over the 75k threshold and then I’m required to pay gst on both businesses?
Or, does each business have its own separate $75k threshold, therefore I’m not required to be gst registered?
Thank you all
The only purpose of an ABN is to calculate and track GST. It is attached to the owning entity for life (as a file number) and ALL the income through that ABN is combined. As soon as you reached $75k earnings for that month PLUS the preceding 11months combined, you were obligated to register and collect GST on top of your sales.
So yes, it sounds like you need to register for GST before you end up with a debt.
So, just to clarify, it is not based on financial year (or calendar year) earnings. It has its own special date range.