Starting up a lawn care business

[Dave78]

Gday all, just a few questions regarding starting up. I have some business names getting registered at the moment and then my next step will be an ABN. I have read that you dont have to be registered for gst if your business is earning less than 75000. I will most certainly be earning less than that, probably more like 75 bucks! So what are the advantages/disadvantages of registering or not registering for gst that you lot have found? Also I reckon I will be spending about than 5000 to start up, on machines, uniforms and a little to spend on the trailer. So to those with the experience how will I go about claiming these expenses when it comes to tax time, are most of these costs a complete deduction or do things like machinery get depreciated and claimed that way? I am thinking that any money spent on this business can be claimed and will mean paying less tax at my full time job. I will continue working full time for as long as needed, probably a couple of years as I am starting from scratch. Any info will help, thanks

[Wattle GC]

Gday all, just a few questions regarding starting up. I have some business names getting registered at the moment and then my next step will be an ABN. I have read that you dont have to be registered for gst if your business is earning less than 75000. I will most certainly be earning less than that, probably more like 75 bucks! So what are the advantages/disadvantages of registering or not registering for gst that you lot have found? Also I reckon I will be spending about than 5000 to start up, on machines, uniforms and a little to spend on the trailer. So to those with the experience how will I go about claiming these expenses when it comes to tax time, are most of these costs a complete deduction or do things like machinery get depreciated and claimed that way? I am thinking that any money spent on this business can be claimed and will mean paying less tax at my full time job. I will continue working full time for as long as needed, probably a couple of years as I am starting from scratch. Any info will help, thanks


Well welcome aboard..You do not have to register for GST as a sole trader earning under 75k..So no bas statements to do..machinery is depreciated over time and i suggest a good accountant to guide you through the maze..This website has an accounting section and your quesions are best pointed in that direction..
Each of us run differently and thus have diffrent claims but essentially it isnt rocket science having say that be guided by an accountant as some opinions could lead you down the garden path.

[Tender Lovin Lawn&Garden]

Gday all, just a few questions regarding starting up. I have some business names getting registered at the moment and then my next step will be an ABN. I have read that you dont have to be registered for gst if your business is earning less than 75000. I will most certainly be earning less than that, probably more like 75 bucks! So what are the advantages/disadvantages of registering or not registering for gst that you lot have found? Also I reckon I will be spending about than 5000 to start up, on machines, uniforms and a little to spend on the trailer. So to those with the experience how will I go about claiming these expenses when it comes to tax time, are most of these costs a complete deduction or do things like machinery get depreciated and claimed that way? I am thinking that any money spent on this business can be claimed and will mean paying less tax at my full time job. I will continue working full time for as long as needed, probably a couple of years as I am starting from scratch. Any info will help, thanks


Yeah i suggest you talk to an accountant.

[Stripes]

Welcome to the forum.

If you are not GST registered, you will not be able to claim the GST on purchases, so if you are spending $5,500 on equipment, you will miss out on around $500 worth of tax credits. There is also the ongoing costs such as insurance, vehicle costs including fuel that you will miss out on claiming the GST component of. Machinery will be depreciated over a period, but things like insurance and fuel come straight off your taxable income.
Not being registered for GST will probably see you miss out on commercial jobs too but it depends on what you want to be doing later on.

[gjs]

Hi Dave78
If you buy equipment over 10 yrs old there is no depreciation claim.
Borrowed money to buy equipment fees & interest are deductable
Do not register for GST if you do not need to or you will have more paper work to, Wait until you have to.
Keep receipts for equipment purchased,petrol,tip fees any hardware supplies,parts and repair to vehicle and equipment,stationary, clothes etc.

[Dave78]

thanks for the help guys