Hi there,
I'm looking for some help on the topic of sole traders vs small business and what the requirements are in terms of ABNs, GST and tax.
Currently, I have an ABN registered under my own name and my main income source is as a contractor/sole trader/freelancer providing marketing & copywriting services. I'm not currently registered for GST as my total earnings will be under $75k for the 24-25 tax year.
On the side, I've also been running events. This started as a bit of fun/a hobby but my projected yearly income for the next year could potentially end up being around 20k if I continue with it. I know this is still a relatively small income, but I'm concerned that it might no longer be considered a 'hobby' and I'm unsure what I need to do from a tax perspective, especially if I want to actively try and grow it! Also, this amount is just my profit - is this what I should be using when calculating my income? My gross earnings could be more than double this but I've subtracted the costs for venue hire, refunded tickets, etc.. How should this information be shown on my tax return for this year?
My main question is can I run these events under my current ABN (listed under my name, not a 'business name') or do I need to take other action? This business has nothing to do with the marketing freelancing services I provide but I was under the impression you can provide different services under the one ABN. I'm unsure whether these events I'm running need to be registered as a separate 'business' or anything like that?
In addition, if I continue with both the side hustle and my main marketing contract work my total yearly income will likely be very close to or slightly over $75k for the NEXT financial year (25-26). Trying to set myself up properly for this, should I register and start charging GST on everything (my contractor rate and the event tickets) or am I better off waiting and registering for GST the same month I hit this $75k earnings amount?
I understand that every situation is specific, but any help from the ATO or advice from people in a similar position would be greatly appreciated as it can all be a bit overwhelming!!
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