Do I need an ABN to lease out my property?

[lithopian]

Hi Guys

I'm sorry if this is a really obvious question- i've searched through the forums and can't find an answer.

I own a unit in Perth WA and am currently applying to lease it out through a PM. On the PM appointment of agent form it has ABN:____ but i don't have one. I got a bit freaked out having not heard about it; do i need an ABN in order to rent out my property?

Regards
Imogen
(rental value approx $350 per week)

 

[jaycee]

Hi Guys

I'm sorry if this is a really obvious question- i've searched through the forums and can't find an answer.

I own a unit in Perth WA and am currently applying to lease it out through a PM. On the PM appointment of agent form it has ABN:____ but i don't have one. I got a bit freaked out having not heard about it; do i need an ABN in order to rent out my property?

Regards
Imogen
(rental value approx $350 per week)

Hi Imogen,

No you don't.

I assume the house is owned by you in your name ?

Same as me if it is...

The lease filled out will show you as the owner & whoever the tenant is as agreeing to pay you $xx / week.

At tax time, you will add this rent to your tax return and also add all your claimable expenses.

No ABN needed

 

[Aaron_C]

No you do not need an ABN to sign a lease. That's just a standard form contract because some properties are owned by companies/trusts that have ABNs.

 

[dan c]

No you don't need an ABN. An ABN is required wher you are running a business. Renting out a residential property is not (generally) considered to be a business.

 

[Joel]

Are there any advantages in using an ABN considering it's pretty easy to get one?

 

[dan c]

Are there any advantages in using an ABN considering it's pretty easy to get one?

No.

Long answer, noooooo.

 

[Aaron_C]

Are there any advantages in using an ABN considering it's pretty easy to get one?

If you are a property investor avoid it, especially GST registration. It causes problems if you develop your block of land and have to pay GST on the sale proceeds.

 

[Scott No Mates]

If you are a property investor avoid it, especially GST registration. It causes problems if you develop your block of land and have to pay GST on the sale proceeds.

Swings & roundabouts Aaron. Being registered for gst allows you to claim input credits and use the margin scheme etc but seek financial advice if developing.