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reenah(Initiate)Initiate
21 July 2023

Hi!


My husband has 2 businesses under 1 abn. 1 business makes over the 75k so he is now gst registered but as he is a disability support worker it is gst free so he doesn’t charge gst. The other business is only making less than 10k


My question is should he be charging gst on the 2nd business that isn’t making as much? And does he need to do bas for this business too? If he does need to charge gst for the smaller business how can he avoid it and it’s only a side hustle and makes way less than the other?


thank you

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2,636 views
2 replies

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Most helpful reply

WendyATO(Community Support)Community Support
24 July 2023

Hi @reenah,


When you use the same ABN with multiple business activities and registered for GST.


Then GST will need to be charged on all businesses including the 2nd business regardless the amount earnt.


Yes, you will need to complete a BAS for business 1 & 2. You can do this by totalling both businesses together.


You may be able to use a different business structure not as a sole trader by applying for another ABN if eligible.


I cannot advise what structure to use and whether this be beneficial.


If the two businesses where under two different ABN's, then GST registration would apply on the individual ABN that is above $75,000 threshold.

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Most helpful reply

WendyATO(Community Support)Community Support
24 July 2023

Hi @reenah,


When you use the same ABN with multiple business activities and registered for GST.


Then GST will need to be charged on all businesses including the 2nd business regardless the amount earnt.


Yes, you will need to complete a BAS for business 1 & 2. You can do this by totalling both businesses together.


You may be able to use a different business structure not as a sole trader by applying for another ABN if eligible.


I cannot advise what structure to use and whether this be beneficial.


If the two businesses where under two different ABN's, then GST registration would apply on the individual ABN that is above $75,000 threshold.

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2 businesses 1 abn and gst registered | ATO Community