ABN neccessary?

[Miss V]

I was advised to get an ABN by a commercial property management group that I will be signing up with shortly. Is this totally necessary?

Is there any implications from having one? What does it mean in relation to tax? Is it just because I am doing commercial as I have never needed to have one with straight residential.

If anyone has any great websites I should check out, it would be greatly appreciated.

I am a bit confused and don't want to make a wrong move.

thanks in advance

V

 

[Peter_Tersteeg]

You may have to collect GST on a commercial property, hence you'll need an ABN and GST registration. The implication of this is that you'd have to file BAS statements and pay the ATO. Your accountant is probably the best person to explain how this is relevant to your circumstances.

It's probably a good thing to do anyway if you're investing long term. From a finance perspective it opens up a few options later down the track.

 

[tor]

...It's probably a good thing to do anyway if you're investing long term. From a finance perspective it opens up a few options later down the track.

Plus you can stash your gst into your offset and reduce outgoing interest for a few months when you have the ABN (and income).

Handy.

Edit: Oh and (if you have the headspace) register for quarterly so it sits there as long as possible. Do not do this if you are hand to mouth. You may crash and burn.

Oh and of course internet, advice, hehehehe, go see an accountant etc.

 

[Miss V]

thanks all

I spoke to my accountant today, and even though there is no GST applicable for this deal, he advised me to get one anyway, and voila, 10 mins later I had one!

Cheers V