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6 replies to this topic
Greeny
Greeny

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Starting Up
#1

Hi all , im starting from the bottom in this great business of lawn mowing, Going to start with the basics , lawn, edges, clean ups. I have my ABN , should i consider registering for GST to claim fuel expenses . Or should I  wait to see how things go,

Thanks  


Posted 27 May 2015 - 10:43 AM

Rusty
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#2

A accountant will give you the correct answer for your circumstances 


Posted 27 May 2015 - 01:28 PM

sandgroper
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#3

You don't have to register for gst to be able to claim for fuel as far as I am aware.

As Rusty suggests best to check with your accountant as to your particular circumstance.   


Posted 27 May 2015 - 07:53 PM

Iand
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#4

Roughly

the "advantage" of gst registration is that you can claim back the whole GST component against the GST you collect otherwise you can only claim the purchase as a tax deduction so at 30% tax rate $10 gives you a $1 GST claim back then 30% of $9 so $1.00 +$2.70 = $3.70 no GST rego is 30% of $10.00 so = $3.00 which gives you an extra $0.70 per $10.00 claim which sounds good but and there is always a but :D if you look at it from the other way and quote a lawn at $50 with GST rego  you only make $45 after paying GST but :)  you do get the $0.70 extra GST rebate so in my opinion you are better to not register for GST until you have to but always base your price like it includes GST ie: if your competition are charging $50 + gst then you quote $55 don't even mention GST as it's pretty irrelevant to home owners and is only a concern if going after commercial work by the same token if you are buying a lot of equipment it may be worth registering this year then deregistering next year


Posted 27 May 2015 - 08:45 PM

Anything Ian says may or may not be garbage, it may also be his own opinion or it may not be his opinion at all, it may just be something he felt like stating anyone following his advice does so at their own risk and may be doing something Ian would actually advise against smile.png


Bruce
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#5

Hi Greeny, welcome  :)

 

I believe $75K turnover is the compulsory line for GST registration, and the moment you expect to earn over this threshold is when it is required to register. Though you can register for GST under this amount.

 

It's your choice what path you take of course... and everyone will have their own reasons for whatever route they choose. So GST may be OK for you.

 

But just consider that in your first year you'll most likely be running at a loss. That loss is then offset again in subsequent years - from what I understand - please check for yourself though... and so you will have a decent tax offset right off the bat to get your business started.

 

I would suggest, and feel free to dismiss it... If I were just starting - I would put 100% of my time and energy into getting customers, learning the business, and learning to become profitable. It can be a difficult path for many, and the failure rate in this line of work is no different than any other new business.

 

If it's not something that's going affect your immediate business and getting up and running, and learning the business as quickly as possible - I'd put it to the back burner for the moment. You can register for GST at any time, so if it were me - I would lessen every extra load or distraction that wasn't necessary - and just concentrate on building my business for ongoing success, and to get past those first couple of years.

 

GST - register any time in about a minute. I'd be concentrating 100% on getting the business off the ground and operating profitably as my highest and only priority. Anything else is just distraction.

 

Just my own thoughts.


Posted 28 May 2015 - 08:20 PM

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wombat
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#6

Steve is right, if your not going to exceed 75k in turnover don't register for GST but by all means talk to your accountant, yes he will cost you but also look after you. He/She wants your business to. Good luck.


Posted 30 May 2015 - 01:17 AM

Greeny
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#7

Thanks guys for the info and advice. Will certainly work on building up the business and customers, to get things off the ground "

Cheers to all  :)


Posted 03 June 2015 - 06:12 PM





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