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Discussion Starter #1
I am putting things in place to start selling t shirts and would like to know if I need an ABN and-or other things before I do.
I am going to keep my day job for a start and see how things go.
I am still maybe a couple of months away from doing that because I have a lot more preparation to do, but I was wondering if I needed one or not, or would it be benifical tax wise to do so anyway in terms of buying equipment etc.
Any advice would be great.
 

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It doesnt cost anything to register for an ABN so its a good idea so you can do it all legally, plus you will find wholesalers/suppliers may not deal with you unless you have one.
 

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...but I was wondering if I needed one or not, or would it be benifical tax wise to do so anyway in terms of buying equipment etc.
Having asked my accountant the same thing last year I was told that if you are setting up as a sole trader (would probably be different for companies, and perhaps partnerships etc) unless you turn a profit or gross over $20,000 per year there are no tax deductions available to you on equipment/stock as the activity is regarded as a "hobby", not a business. This also means that you will not be paying tax on any incoming money until you are turning a profit and once you start to make money off the venture you will then pay tax on the profits.
*As stated above I am not an accountant and just relaying what I was told, but it is best to speak to someone who does this for a living to ensure your exact situation is covered!
 

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Hi Banga,

You dont have to have one although I would get one now as it opens you up to the wholesale industry. Purchasing supplies at a lower cost betters your profit!

Cheers
Striking :)
 

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Discussion Starter #7
Hi Banga,

You dont have to have one although I would get one now as it opens you up to the wholesale industry. Purchasing supplies at a lower cost betters your profit!

Cheers
Striking :)
That is also something that I was wondering about. Does everyone that you buy shirts off of offer discounts if you have an ABN or just some?
 

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Hi Banga,

Not sure although I would say most would offer wholesale pricing. When you order online most suppliers will have something which mentions wholesale enquiries. I am in the midst of starting my own business and find that most of my suppliers offer wholesale although need an ABN for pricing etc..Just to let you know I actually design jewelry although am going to use the dye sublimation method on my designs and am not doing the T shirt thing. Hopefully I will meet like minds doing what I do although happy to be offering advice where I can as this is what this forum is all about! Cheers Striking
 
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