Serious question

[jack_ryder]

Although we're not earning much (if anything) with the radio plays, [edit]ferkster and I have been asked if we have an ABN.

Do any writers out there have one? Does it help at tax time? I know it offsets GST tax credits and so on, but should we get one now, or wait until some serious money comes in (I would imagine it's the latter, but I'd like to know if anyone else has had to apply for one.)

Comments

[ashamel.livejournal.com]

Kyla and I both have ABNs, and they are used whenever we get paid in A$ (which isn't exactly often, it must be said).

Having said that, I'm not sure I can answer your technical questions. I can point to one trap however -- if you get an ABN, don't register yourself for GST (forget the exact wording, but it's close to that). That's what I did, accidently, and it meant I was supposed to charge an extra 10% to anyone paying me, put in quarterly statements and such. Fortunately, the Tax Office allowed me to cancel that straight away, despite the fact they have guidelines saying you shouldn't be able to do so before a year has passed. There is some threshold over which you have to do it, but under that it is a great pain. And otherwise, having an ABN hasn't been any bother at all.