ABN for Independent Salesperson

Posted on: April 16th, 2016

If you are conducting a business as an independent salesperson, then you may need to register an Australian Business Number (ABN)..

A business is a hard concept to define, though it can often be characterised as having some of the following key elements:

1. The activities performed have a commercial character and they are being done for the purpose and likelihood of earning a profit;

2. There are regular repeating transaction and you are keeping appropriate business records;

3. You have a separate bank account, a registered business name and other registration;

4. Your activities are planned, organised and carried out in a business-like manner.

Alternatively, a hobby is a pastime or leisure activity conducted in your spare time for recreation or pleasure. If your activities are a hobby rather than a business, the income is not assessable and you cannot claim a deduction for you’re out of pocket expense.