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I have two companies. I am the sole director and shareholder for each one.
Company A was set up in 2017 and was originally a bit of a gimmick (long story) to own my personal vehicles (a car and a couple of motorbikes). It wasn't originally intended to trade actively (just a holding company to own my vehicles).
Company B was set up in 2018 for the purpose of owning and renting cars to taxi and rideshare drivers (ie an actual trading business).
In 2019 I figured that I'd put a car or two under Company A and earn some extra money - at the moment it's three cars and won't be increasing. It's basically a semi-hobby to earn some extra income on the side, which I will then spend on my personal cars and motorbikes (ie it's a way of creating an income to pay for my toys).
On 17th January 2020 Company B hit the $75,000 threshold for GST, and has been paying GST since then.
Company A is never going to pass $75,000 in a 52 week period, so does not have to have GST-registered.
However, although Company A is a hobby on the side it is basically doing the same thing as Company B (which now has to pay GST).
Does Company A need to become GST-registered is it is a parallel company to Company B, or can I leave GST out of A? Is this considered GST avoidance by the ATO?
(Note: Reading between the lines: Company A may or may not be a means to assist in avoiding driver's licence demerit points. The car and bikes are of a non-commercial use (eg trail bikes) so it's not suitable to merge the two companies).
The changes apply prospectively in relation to assessed liabilities that arise in relation to tax periods commencing on or after 1 April 2020. They may also apply retrospectively to a previous tax period where, on or after 1 April 2020, the Commissioner makes a Div 268 estimate of a net amount relating to that previous tax period (to the extent that the net amount has not been assessed).
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