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bb1, post: 222693, member: 53375 wrote:

My question is why cant he do it himself ???????

My answer, Don’t do it !!!! He may have an MBA, he may be a friend,

Sorry run
For one, he doesn’t have his own company. He is employed.

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I went with St George Insentive Saver ( 3.89% p.a.) rate.

Its already linked to my Quickbooks Online Suite. I transfered my PAYG Payable from my Business Account to the saver account, but how do I record this transaction in Quickbooks?

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PRO, post: 195822 wrote:

What I do with GST, PAYG and Super.

Each fortnight I take the money out of a trading account and put it into a high interest online only account. Then at BAS time I transfer over. Great for budgeting and means you get a good interest rate. I also transfer 10% of sales over for GST. Then take half of what is lest to invest in growing the business and the other half to the directors/shareholders as a reward for being in business.

As your businesses(s) grow the interest can become significant.

I like the sound of this. It actually makes sense and this is what I want to do, to also make sure I budget for when its time to do my BAS etc…

Current I bank with St George and they have Fixed term savings accounts, which interest rates of 3.25 on 4month term, which should be fine for each financial quarter… Any advise if there are better ways to invest this money until BAS time comes?

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Thanks for all the feedback! Very useful.

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I was deploying an update. Try again

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Looks great… I love bootstrap, makes development for a web-developer fun.

I did the same thing but not so much effort as you: http://www.finamic.com.au

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My business reports on a cash basis. This is how I understand it. I’m doing to do Quarterly BAS statements. My company will start to operate Monday.

According to the ATO, this means my GST begin period is APRIL. So in quickbooks, I selected April in “Your current GST period begins”

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SewSpunky, post: 34594 wrote:

As PPs have indicated, you can get an ABN without registering for GST. If you are considering registering for GST I would strongly suggest discussing your plans with an accountant first.

Should down the track the ATO decide your business actually falls within the realms of a hobby, you may find yourself with a large tax bill to pay back! I have seen this happen to a bricks and mortar ‘business’ that ran at a loss for too many years (think it was 5yrs?). ATO did an audit and determined the ‘business’ was a hobby. The result was over $40k having to be paid back to the ATO

So it definitely pays to seek professional advice before registering for GST unless you are certain of the ins and outs of it all yourself

Thanks for the heads up! I’m probably going to be employed full time within the next month or so, so I’m hoping to run my business parallel to working full time. Will this be seen by ATO as a hobby?

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Hi,

I forgot to answer that question. Yes, I do have a Tax Invoice for the car, made out to me. I only received my TFN yesterday, so can only register for my ABN today, going to do that now.

When completing the online ABN registration, should I indicate that my start date was prior to when I bought the car?

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JamesMillar, post: 34590 wrote:

Need to know

1. Are you a company or a sole trader? There are different rules for pre commencment acquisitions for companies.

2. Is the vehicle to be owned by the business or by you personally? If you are a sole prop the distinction is simply whether or not its a “business asset” or a personal asset. Any personal use will effect the extent to which you are able to claim a GST credit.

3. Did the seller of the car provide you with a tax invoice and did it indicate that GST was included in it? You must have a tax invoice to claim an input tax (GST) credit.

3. What was the effective start date of your business that you listed on the business reg form submitted? If it was prior to the the acquisition then you can claim (provided you are registered for GST and satisfy 1 above).

Keep in mind that any future disposal of business assets will result in a GST liability – so if you sell the car after it becomes a business asset allow for 1/11th to go to the ATO.

Thanks for the reply.

1. I’m a sole trader. Business name registered about 2 months ago.

2. The car was bought 2 days ago and is Registered in my name. I’m starting an online electronic shop business, so I’m going to use the car to drive around to pickup stock etc… But also for personal use, over weekends etc..

3. Not sure which business reg form you referring to? I’m still in the process of registering for my ABN & GST. But my business name was registered about 2 months ago. Do I need to notify ATO of my effective start date? I have not yet started transacting because I need my ABN to register for business bank account.

I am aware that if I sell the car that I need to pay GST back to ATO, no problem there…

Thanks for your help!

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Felicity_Sapphire, post: 34434 wrote:

The standard processing time by the tax office is 28 days of receipt of your application.

In relation to your ABN & GST registration, you are able to back-date your registration, so you can claim the GST on the items you have already purchased.

Good luck with your business!

Thanks for the information. I actually received my TFN in the post today, yay! Now I can register for my ABN

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JamesMillar, post: 25962 wrote:

Yes you can start your business without an ABN. Its only compulsory if you hit the $75k mark and are then required to register for GST.

The only issue with not registering is that the payer may be required to withhold PAYG for non disclosure of ABN. Thats provided the payer is a business (so for B2B transactions). If the payer is a non busness entity then the withholding does not apply.

Even if the payer is a business, if the supply is less than $75 they are not required to withhold for non disclosure of ABN. So depending on what you are selling, if they are low value items or you are supplying to end users only (non business payers) withholding may not be an issue.

If you are running a non resident enterprise with a permanent establisment in Australia then thats a different matter again.

Edit..Speak to your / an accountant about your specific circumstances as this is general advice only.

Thanks for the great feedback!

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vxd, post: 25949 wrote:

Turn over $75000 is when you are required to apply for GST I don’t think it has anything to do with ABN.

I think it goes something like this: The person whom is paying for your services will be able to withhold 40 something % because you do not have an ABN.

You will just be taxed at the highest threshold.

Just Call up ATO they will answer all your questions.

That’s a bit hard seeing as I’m in South Africa atm.

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I dont have a TFN yet, will only be able to get one once my PR visa is validated in April… so I guess I’m a sitting duck…

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I’ve done some more reading and it seems that I need to Register as a Sole Trader, and because I am going to trade under a different name (“BringITover”), I already registered that business name. At least now I understand the whole thing about Fanix T/A BringITover…

I’ll follow the instructions on ATO’s website on how to register for an ABN – Sole Trader, and now I also understand why I require an TFN.

If read on ATO’s website that if I dont have an TFN that I can simply supply proof of identification, is this true?

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