ABN Registration

[steveadl]

Hi finance gurus!!

Just a quick question regarding ABN registrations and loan applications/low docs etc.

I'm good with my finances at the moment and already have an ABN (and accompanying business ) that has been registered for many years.

I am planning to get into commercial/industrial in a couple years time and just wanted to know whether I should register another ABN now?

My thinking is it may be possible I want to go to a different lender who doesn't know my other financials, may buy it in a company name etc. - not really sure about all this, and I don't really need to think too much about it now.

Was just wondering if a 2yo+ registered ABN would be a wise thing to have in 2yrs time when it comes to setting up new stuff?

Also, when applying for loans, does the ABN used need to be for an actively trading business? Or can I just register an ABN now and let it sit there unused/untraded under until I need to present if for a low doc?

Sorry if I've waffled!

 

[Rolf Latham]

Hiya

Id say in general there is no need if u alreayd have one vehicle doing well

ta
rolf

 

[Beef_Hooked]

If I may piggyback on this thread and add another ABN question.

I have just sold a business, registered as a sole trader, the registered business name will go with the business. My question is, does my ABN also go with the ABR name? I have held it for many years and used it to trade under a previous business name that I closed down, then I just added the new business name some years ago. This has given me the impression that the ABN and reg. bus. name are 2 separate things. Am I correct in this assumption?

I'd like to keep the ABN just in case I need to apply for a lo doc in the future, as the new rules seem to require an ABN registered for 2 years (?).

TIA.
Cheers,
Beef.

 

[pennyk]

If I may piggyback on this thread and add another ABN question.

I have just sold a business, registered as a sole trader, the registered business name will go with the business. My question is, does my ABN also go with the ABR name? I have held it for many years and used it to trade under a previous business name that I closed down, then I just added the new business name some years ago. This has given me the impression that the ABN and reg. bus. name are 2 separate things. Am I correct in this assumption?

I'd like to keep the ABN just in case I need to apply for a lo doc in the future, as the new rules seem to require an ABN registered for 2 years (?).

TIA.
Cheers,
Beef.

I think it depends how you structured the sale... so you speak to the accountant/ solicitor who helped with the sale.
When I "sold" my business, I didn't actually sell the business. they took the trading name and my customers etc, but didn't actually buy the company. In this case, I kept my ABN.
But I think if you have actually sold a company, the ABN would go with the business.
But you should check which situation applies in your case,
Pen

 

[Mamaof3]

hey steve,

we haven't personally done it (yet) but we met another developer a few months ago that says he just sets up a couple of ABN's each year so that he has them at hand in 2yrs time when it passes the 2yr mark...ie. so he doesn't have the need to lie to the banks about his 2yr ABN.

i'd be interested to hear about others who actually do this.......

 

[Spectre]

Also on a tangent - hope this makes a bit of sense.

When you're doing low doc'ing and declared income
.
There is a general rule of thumb that you have to be GST registered. Many lenders have of recent times wanted a 2 year registration.

So if you werent registered for gst previously, then you couldnt have earnt more than 75k, or 50k

Some of the mortgage insurers have a policy that if your income has gone up more than 20% then you better have a gooooood reason why or they wont accept the higher income - and be able to prove it - or the application may be deferred

So say if your pre-gst registration income is 50k last year, then this year you did a low doc declaring 100k and you need the 100k to service the debt, then the max the insurer would accept would be a 20% increase on the 50k, or 60k. 75k would be 90k. and so on.

Same can also apply for full doc loans - depending on the lender

 

[investemptress]

more ABn question

if i might reply here to ask more questions abotu ABN, I just heard this week thats its quite legal to backdate an ABN ??
how does go about this and why, and are there any ramifications.? I still on full doc loans btu expect in some time (2 years?) might hit the serviceabitity wall and have to go low doc.
cheers and thanks for listening

 

[Spectre]

BH
Often if you can show a history of the abns you have that helps.
We did a doctor on a low doc, she had a new abn for 18 months, gst rego for the same.
prior abn with the old practice was 10 years+

 

[Terryw]

if i might reply here to ask more questions abotu ABN, I just heard this week thats its quite legal to backdate an ABN ??
how does go about this and why, and are there any ramifications.? I still on full doc loans btu expect in some time (2 years?) might hit the serviceabitity wall and have to go low doc.
cheers and thanks for listening

hi

I think the date of the ABN needs to be established when it is registered. There is a box to put the date at which the business started and that will be the date of your ABN. Not sure if you could go back and amend it once you have received the ABN.

 

[pudestcon]

My understanding is that its not the ABN so much that is needed but being registered for GST that is needed, and not registered for 5 minutes either. I have just enquired about backdating registration for GST to the start of 07/08 financial year and my accountant has said there is no problem in doing this. The problem is in the gst you need to pay on the income during that year (if no income then why do you need a gst registration?) and the penalties the ATO will charge for late registration of gst - I believe you are supposed to register within 21 days of needing the registration.
My understanding only so would be interested in others views. Hope I haven't gone off topic here

 

[jaycee]

If I may piggyback on this thread and add another ABN question.

I have just sold a business, registered as a sole trader, the registered business name will go with the business. My question is, does my ABN also go with the ABR name? I have held it for many years and used it to trade under a previous business name that I closed down, then I just added the new business name some years ago. This has given me the impression that the ABN and reg. bus. name are 2 separate things. Am I correct in this assumption?

I'd like to keep the ABN just in case I need to apply for a lo doc in the future, as the new rules seem to require an ABN registered for 2 years (?).

TIA.
Cheers,
Beef.

If nly becuase you were a registered sol trader, not a COMPANY.... the answuer is you keep the ABN

Why ?

Te ABN is registered againsta legal name fo a leal entity - a person / trust / company etc.

If you sold the company, the ABN goes with it, as does the company name. say BeefHooked Pty Ltd

As you did not sell yourself, the ABN is still registered to you, Mr Beef Hooked the person. You probably have to get whatever your trading name is shown as changed as you no longer trade under that name - the person who bought your buisness, bough the business and trading name, not the legal name,

geez I hope that made sense