[samagard]

I am thinking about starting a business from home. Sewing items and selling them on ebay for the moment, then working on own website.
I am wondering where I start from here.
Does having an ABN affecting my centrelink benefits. Do I do 2 tax returns if I earn money. How much do I declare, what is my income etc. I would be on my own, so I don't have to pay staff etc. Very confused, but a little excited.
Thanks

[.Ally.]

Hi there. Having a ABN will affect your payments, as you will need to declare any income you earn. You won't need to charge GST as you'll be earning <$75K. As for tax returns - you'll just need to do the one. You can have as many business names/incomes as you like - you use the same ABN associated to you so the ATO can track your income.

However you can run the business as a hobby. That way you won't need an ABN. I think you can earn up to $10,000 without an ABN - but don't quote me on that, I've never done it. This might be a good option to see how things go.

The first steps will be coming up with a business name and registering it in your state. In NSW you do this through the Dept. of Fair Trading and it costs about $150 for 3 years from memory.

You might find a basic 'starting a business' type book quite useful.

Good luck.

[samagard]

Thanks

[Guest_MilkyBarMum_*]

Sam, it will be hobby until you earn over $10K a year! I work from home and don't need a ABN as I earn under $10K a year doing it, But once my Cleaning job gets going, I need a ABN then.

Good Luck with it all

[walkingmum]

This all depends on how much you earn, I would check the centrlink website to be sure.

[Eviesmum]

Sorry to reserrect an old thread but...

DH has started a small handyman business it only made about 2k this year (after work for a few hours a week) however we had not registered the business or arranged an ABN.

As it earns (and will continue to earn) much less than 10k pa I am not sure what we need to do? Do we declare then income (I assume yes) but then can he claim expenses like travel and tools etc.

Any advice at all welcome

[Eviesmum]

Sorry to reserrect an old thread but...

DH has started a small handyman business it only made about 2k this year (after work for a few hours a week) however we had not registered the business or arranged an ABN.

As it earns (and will continue to earn) much less than 10k pa I am not sure what we need to do? Do we declare then income (I assume yes) but then can he claim expenses like travel and tools etc.

Any advice at all welcome

[Gonewiththewind:...]

The previous poster who said if it is under $10,000 it's considered a hobby is incorrect. The ato has definitions for Bobby's & it isn't based on earning. It's to do with intention to earn income etc. Have a look on the ato website.

[Eviesmum]

Thanks so much I was just on the ATO website. I found it quite confusing so a trip to an accountant might be in order.

We did complete the "Am I entitled to an ABN" and he isn't according to their rules. It was started as a bit of a hobby and to see if he liked it. He charges way less than most "proper"" handymen

Basically it was set up to see if he could imagine doing it in the future full time and the bit of extra cash has been nice.

The more I read the more confused I get

[Jembo]

As it earns (and will continue to earn) much less than 10k pa I am not sure what we need to do? Do we declare then income (I assume yes) but then can he claim expenses like travel and tools etc.

Make an appt with an accountant, it will be worth it. You can also see your small business centre and they can refer you to an accountant and in some cases the first appt is free (our centre does this).

But they will be able to give you the best advice and if you are unsure and you want to grow the business the best thing you can do is see an accountant and also a small business centre.

The poster was incorrect about you can earn under $10K without declaring. Basically if you operate in a business like manner (the ATO lists what these are and most hobby business who make things and sell them regularly whether it be a market or on the web) can be considered a business.