Home – New Forums Money matters Sole Trader and running a 2nd business

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  • #997142
    wolfwolf
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    Hi
    I’d like clarification on the GST threshold.
    Current business is getting towards 75K it fell just short last year.
    Exploring options regarding GST and if I can avoid having to implement it!
    If I can rearrange my current business and start a new business under the same ABN which would drop the 1st business earnings well below the 75K, can I do this?
    ie have 2 businesses as a Sole Trader both earning upto say 70K (eventually he says optimistically) without having to sign up to the GST thing?
    While earnings are good costs are not so good therefore I don’t really have the ability to absorb an extra 10% cost to my bottom line and nor would the market I work in be able to carry the extra costs!
    Cheers

    #1210615
    Paul – FS Concierge
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    Hi And Welcome to Flying Solo wolfwolf. It is great to have you!

    Hopefully some helpful members will be along to point you in the right direction.

    Cheers

    #1210616
    Precise Tax Solutions
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    Multiple businesses run under the same ABN share the same $75k GST registration threshold.

    Once you earn over $6,250 in any month and the forecast is that this will continue, you are required to register for GST at that time (even in the middle of a financial year) and will be liable to pay GST to the ATO from the date you are required to be registered.

    Cheers

    #1210617
    traydemackenzie
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    Hi,

    Exactly what Ben said if the two businesses are using the same ABN the $75k rule still applies.

    #1210618
    aloysius
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    I’ve been in a similar situation, although with me it was two quite different business activities, just both under my name as a sole trader. I ended up setting up a partnership (with my wife as the other partner) for one of the activities – the partnership has a seperate ABN and TFN so is a seperate tax entity. If you are doing two seperate things this might be a good course forward, however if it’s a single business activity you want to split just for accounting purposes, you may be on shaky legal ground.

    #1210619
    Paul – FS Concierge
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    [USER=100646]@aloysius[/USER] – Thanks for joining and contributing to Flying Solo!

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