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One ABN, two businesses, but only one eligible for GST

Newbie

Views 616

Replies 2

Hi,

 

I operate two businesses as a sole trader under one ABN. One is journalism, the other buying and selling shares.

 

At present neither is registered for GST. The journalism business does not pass the $75K threshold. The buying and selling of shares is not classed by the ATO as a GST-eligible business. 

 

I have an opportunity to increase the journalism above $75K, at which point I would have to register for GST for that business. From what I have read online it seems I would then have to pay GST on the share trading business as well because they operate under the same ABN. This seems nuts because the ATO does not class share trading as GST-eligible.

 

How do I deal with this? Register a second ABN and separate the businesses? If so, what are the implications at tax time?

 

Thanks in advance for any assistance with this.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 1

Hi @Swordfishtramp

 

Thanks for your question. Buying and selling of shares is a financial supply so it's classed as input taxed. This means you would still put it on you business activity statement under input tax sales but you won't charge or pay GST on this. You would need to go ahead and register for GST for your Journalism business and only charge GST on that business. You don't need a separate ABN. As a sole trader you can only have one ABN.

 

Thank you and have a nice day!

2 REPLIES 2

Most helpful response

Former Community Support

Replies 1

Hi @Swordfishtramp

 

Thanks for your question. Buying and selling of shares is a financial supply so it's classed as input taxed. This means you would still put it on you business activity statement under input tax sales but you won't charge or pay GST on this. You would need to go ahead and register for GST for your Journalism business and only charge GST on that business. You don't need a separate ABN. As a sole trader you can only have one ABN.

 

Thank you and have a nice day!

Newbie

Replies 0

Hi Lisa,

 

Thanks very much for clearing that up. Very much appreciated.

 

Have a great day.