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Model
Jessica Rose Johnson
Posts: 3
Brisbane, Queensland, Australia


DO I need a ABN as I am starting out.
when I start getting paid will I need to apply for a ABN ?
Dec 09 12 04:38 pm  Link  Quote 
Photographer
Leonard Gee Photography
Posts: 16,096
Sacramento, California, US


Jessica Rose Johnson wrote:
DO I need a ABN as I am starting out.
when I start getting paid will I need to apply for a ABN ?

http://abn.com.au/

http://www.business.gov.au/BusinessTopi … BN%29.aspx

Employees and hobbyists are not entitled to an ABN as they are not carrying on an enterprise.

Dec 09 12 07:48 pm  Link  Quote 
Photographer
Rob Photosby
Posts: 2,307
Brisbane, Queensland, Australia


Leonard Gee Photography wrote:
Employees and hobbyists are not entitled to an ABN as they are not carrying on an enterprise.

Not entirely true.

If you are working with hobbyists, you will not need an ABN because your modelling will be regarded as a hobby and the ATO considers that hobby incomes are usually more than offset by hobby expenses.  Of course, if you are wildly successful and make tens of thousands of dollars a year from modelling, the ATO may change its view about your "hobby", but cross that bridge if you come to it.

Nevertheless, you may encounter situations where you will need an ABN even if it is still just a hobby.

Those situations will be where you are required to give your client an invoice. These situations will be almost exclusively with professional photographers who will be claiming your fee as a business expense.

If you cannot supply an invoice with an ABN, the photographer will be legally obliged to withhold a large portion of your fee and remit it directly to the ATO. You can claim the withheld amount in your tax return, but it obviously simpler to have an ABN.

Alternatively, you can fill out a declaration that says that you are modelling as a hobby and so are exempt from needing to supply an ABN, but you may get tired of doing this every time you need to supply an invoice.

Call the ATO and they will walk you through the application process. It is all pretty simple.

Dec 10 12 07:07 am  Link  Quote 
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