Hey everyone, hoping someone can help me out here.
I'm looking at starting trying to earn some money from my photography, by selling prints and doing informal portraits, engagement photos, and the like. This would by no means be a regular source of income, I think I'd be lucky to get one job a month at first, being an unknown.
So does anyone know whether or not I need to get an ABN?
Thanks
Cam
Hey Cam,
Depends on a couple of factors - whether you have real customers that want "professional looking" tax invoice, or whether they're happy just handing over cash for a service. Also, if it's a small stream, you could still just report it under your personal tax - I don't see any problems in doing that while you get started. Benefit of an ABN is that you can claim your expenses, i.e. photography gear, travel costs.
It costs nothing to get an ABN - you can apply for it online. However, once you do, you'll need to start doing quarterly BAS statements, GST reporting and other paperwork. It's pretty simple and you can do it yourself, but you might need to hire an accountant to do your financial statements at year end.
Hope that helps...
Jules
If the business is making a loss - ie: you buy lots of gear with any money you make the tax department would rather treat it as a hobby. Once you start making money that is going to make you a profit you can get an ABN.
Jules - think you only need to do BAS if you are registered for GST right?
If you are earning under $75,000 per annum you don't need to register for GST - of course you can't claim it back either.