Getting an ABN

[SolDios]

Hey guys, I need to get an abn for dj'ing (and my website creation) or apparently they have to hold back 40% of my pay.

Ive tried applying online but every time it says im not eligible.

[Cupe]

13 28 69

[Mitch]

Sol the website only says your ineligible if you don't answer the questions correctly, I.e. You need to state the business is already set up/being set up, and make it clear your primary intention is to make a profit, NOT a hobby

[SolDios]

Then don't I have to make a list of all payments I Receive and send them in?

EDIT: and do I list myself as a professional performer or other?

[Cupe]

sounds like you need:

a) a brain

an accountant

or

c) call the ATO and discuss your circumstances

[anditz]

sounds like you need:

an accountant

I'm almost an accountant (graduating this December)....You're not eligible for an ABN because you're not 18. Pretty sure that's it correct me if i'm mistaken.

[Mitch]

Anditz I got an ABN when I was 17 so that's not the issue. What he is doing is listing what he does as a hobby and not primarily to make a profit, which the ATO website automatically marks you as ineligible.

[Suby]

sol, I have an ABN for another business I have, im pretty sure when I was setting it up there was a threshold of money you needed to make before you actually needed one (I may be wrong so someone correct me) in any case, if your not making a lot from your business its a lot of work, BAS and all the rest you have to do every three months so maybe unless you actually need one right now it might be better to hold off? like i said this is just what I have found, feel free to correct me on any of it people as I am not an accountant ha

[Mitch]

If you don't register for GST it makes paperwork alot less, that's what I did anyway.

[andythemusician]

If you don't have an ABN and don't do it too often - you can fill out a form called 'ABN withholding' that notes you don't have an ABN because your doing it as a hobby, thus they dont have to withhold the 46% or whatever it is. Bad thing is each different employer that hires you needs to get this form from you and keep it in their paperwork.

There is no $$ figure on the gap between what is a hobby and what is a job requiring an ABN - trust me I asked this many times as I used the ABN withholding for a while, and only changed when I felt it was becoming more of a job, dealing with more clients, etc. Makes it easier now IMO being able to invoice without worrying about ABN withholding documents.

You don't need to register for GST, and it is a separate application to the ABN. You can if you like to, but you are not obliged to until you gross over $50,000 or thereabouts.

I got my accountant to set it up. Much easier IMO, as I know bugger all about tax and all that crap (excluding what I just said, as I got that from an accountant!)