ABN Number question

[kissfan]

Hi all.

Hope I've posted this in the right section.

I can recall reading a thread a little while back (can't find it now) regarding having an ABN Number in relation to property investing. Can somone please explain (in laymans terms) what the benefits are. I believe it has something to do with making finance easier to get once you can show figures over a 2 year period. Also, where do you apply to get one, is there any costs, do you have to supply a company name (remembering that it is only for I/P purposes) and is there any consequence of attaining an ABN number now but not using it till a later date i.e not showing it on documentation until somewhere in the future.

Thanks in advance
Marty

[ani]

Hi all.

Hope I've posted this in the right section.

I can recall reading a thread a little while back (can't find it now) regarding having an ABN Number in relation to property investing. Can somone please explain (in laymans terms) what the benefits are. I believe it has something to do with making finance easier to get once you can show figures over a 2 year period. Also, where do you apply to get one, is there any costs, do you have to supply a company name (remembering that it is only for I/P purposes) and is there any consequence of attaining an ABN number now but not using it till a later date i.e not showing it on documentation until somewhere in the future.

Thanks in advance
Marty


Hi kissfan

I think this may be the thread you want

http://www.somersoft.com/forums/showthread.php?t=18340&highlight=lo+doc

Apply online to the ATO.....no cost.
correction....actually ABR
http://help.abr.gov.au/content.asp?doc=/content/16985.htm


Don't think there is a problem with not using it. Maybe someone knows for sure

ani

[Ross]

I believe you will have to lodge a quarterly BAS return ( showing $NIL ) .....takes 2 minutes but must be done every quarter :rolleyes:

[Mry]

Unless you are running a property investment business, it is unnecessary to get an ABN. Residential property investing on a small scale does not require an ABN. If you have at least 3 residential properties that are not looked after by a real estate property manager, then you could class yourself as being in business. You will definitely need one if you have a commercial property.

I would say with regards to that thread that was posted that the Groms fellow was having serious trouble working out his own affairs and some of the comments by people in there are taken out of context. The sentence "I don't need an ABN since my turnover is less than 50K" is plain wrong (which PennyK pointed out). You are required to have an ABN if you are in business, the turnover of 50K if the threshold for registering for GST. The sentence "Not having an ABN will mean most lenders wont touch you" is out of context too, what it should say is "Since your gross income is below $50K, you may not have much of a chance of getting a loan since your won't be earning enough to satisfy the income conditions" but even that comment is quite arbitrary.

The guy basically needed an ABN since lenders may have had a lot of trouble believing he was running a business without it, and when applying for a low doc loan, you don't want to give any cause for concern to the lender.

If you get an ABN and don't lodge any figures, sooner or later the Commissioner may write to you and revoke it since you aren't using it for running a business.

[geoffw]

I believe you will have to lodge a quarterly BAS return ( showing $NIL ) .....takes 2 minutes but must be done every quarter :rolleyes:You can apply not to have to loadge a return. It's quite legitimate.

[Rickardo]

Hi,

You can have an ABN while at the same time not be registered for GST. This would eliminate the need to lodge quarterly activity statements.

However you are only allowed to apply for an ABN if you are carrying on an enterprise or plan to do so in the near future, so if you just apply for one and do nothing with it for a long period of time it will eventually get revoked by the ATO and penalties can sometimes apply.

[dtraeger2k]

Hi,

From what the ATO has told me over the phone, if you only have an ABN (ie not reg for GST), you dont have to lodge any returns / bas's if you're not trading.

Give them a call to confirm.

[House_Keeper]

I believe you will have to lodge a quarterly BAS return ( showing $NIL ) .....takes 2 minutes but must be done every quarter :rolleyes:

If you choose to register for GST, you can now apply to lodge returns annually instead of quarterly

Cheers,

[Olly]

I believe you will have to lodge a quarterly BAS return ( showing $NIL ) .....takes 2 minutes but must be done every quarter :rolleyes:

I got one 3 years ago. Never used it. Never put in a BAS. Have never been contacted in any way, shape or form over it. Didn't know I had to put in a BAS showing $NIL but as I say - they've never contacted me.

Olly

[ani]

I got one 3 years ago. Never used it. Never put in a BAS. Have never been contacted in any way, shape or form over it. Didn't know I had to put in a BAS showing $NIL but as I say - they've never contacted me.

Olly

You will only need to do a BAS IF registered for GST.

ABN is simply a business registration number. They are two very different things.

[Rickardo]

If you choose to register for GST, you can now apply to lodge returns annually instead of quarterly

Cheers,

Hi,

This is only applicable if your annual turnover is under $50,000.

[Olly]

You will only need to do a BAS IF registered for GST.
ABN is simply a business registration number. They are two very different things.

Ah! I see. I wasn't registered for GST and knew that I wasn't going to be making more than $50,000/annum, the ceiling when all this stuff kicks in (I think) ( I may have forgotten some of it now and be talking gobbeldy gook or it may have changed. I haven't kept up with it all) :o :confused:

Cheers
Olly