ABN number for small farm

4 posts
Thu, 11/01/2012 - 18:52 #1

Member for

12 years 7 months
ivan4ilse
Last seen: 03/08/2018 - 21:05
Joined: 04/14/2012 - 07:12

ABN number for small farm

G'day farm expert

I am in the proses of buying a small farm in northern NSW and am wondering if it will be beneficial to get an ABN number for farm purchases etc? I currently work and will most likely keep working but would like to earn a supplementary income from the farm. Could you please give me a short answer before I spend money seeing an accountant.

Thanking you in anticipation

Ivan

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Sun, 11/04/2012 - 10:31 #2
barb
Last seen: 09/17/2019 - 18:07
Joined: 11/23/2011 - 09:38

Hi Ivan,

Before applying for an ABN you will need to decide whether you are going to run the farm as a hobby farm or as a money making enterprise. Both can have benefits or deficits.

You may need to discuss this with your accountant or alternatively, you can always talk to the ATO who will help you decide which way to go. I have always found their staff to be very helpful. However, If you would like to test your eligibility for an ABN, the following link to the ATO has a questionaire that will let you see if you qualify for one:

http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=ABN_Entitlement.xr4&go=ok 

You may need to copy and paste this link into your browser.

good luck with your enterprise.

Regards,

barb

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Mon, 11/05/2012 - 09:49 #3
charlie
Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi Ivan,

Welcome to Farmstyle, great to have you as part of the community.

To class your farm as a business and register for an ABN will need to turnover a minimum of $20,000 per financial year. A turnover less than this and it will be classed as a hobby farm. If your turnover is above $20,000 and you don't have an ABN or quote it on invoices a supplier can withhold 46.5% of the sale. 

Registering for GST is compulsary when your turnover is greater than $75,000 per year. 

You can register for an ABN online by visiting here. 

Further information on this topic can be found at this forum post. 

Regards,

Charlie

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Tue, 11/20/2012 - 18:52 #4
ivan4ilse
Last seen: 03/08/2018 - 21:05
Joined: 04/14/2012 - 07:12

Thank you Barb and Charlie for the info and the link.

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