Hobby suppliers + ABN

Message

archangel · #1 Post by **archangel** » Mon Jul 30, 2007 8:35 pm

I don't know how many people have run into this one. I need some strings for bows my students will be making at school. I contacted one of the great string makers on this site and worked out what it would cost. When I came to arrange payment, the registrar from our school said she would need to get an ABN exemption first as the order is not coming from a registered business. Apparently if goods are below $50 or coming from a hobby/craft person working from home, an exemption form needs to be completed.
Surely this is Australian government bureaucracy gone mad???
The implication for people in our line, who are basically providing hobby craft at nominal cost, are mind-blowing. What do you think about this? I have the pdf link from the ATO if you want to check it out. http://www.ato.gov.au/content/downloads/nat3346.pdf

Steven J · #2 Post by **Steven J** » Mon Jul 30, 2007 8:45 pm

Archangel,

Sometimes I think we are twins living on opposite sides of this great country.

It is another example of the government supporting the big guy and squashing the little guy!

Sorry mate, I have not figured a way around this one yet. I still feel your annoyance at this one.

I end up just paying for things or asking the kids for a contribution if it an optional activity that we are working on outside of class time.

Steve.

ole_silver · #3 Post by **ole_silver** » Mon Jul 30, 2007 9:22 pm

arch...

send me your mail details n i will send ya a roll o string..

cheers
Steve..

robbbo · #4 Post by **robbbo** » Mon Jul 30, 2007 9:47 pm

How much do you need as I have a little used roll of black B50 if you like .Let me knowif you can use it.

Robbo

archangel · #5 Post by **archangel** » Mon Jul 30, 2007 10:20 pm

Steve

I end up just paying for things or asking the kids for a contribution if it an optional activity that we are working on outside of class time.

Thanks for your thoughts mate, I know you understand the dilemma. I have been down this road many times and in the past would not have hesitated. However our school discourages this as it can look like we're favouring the kids. God help us all.

Robbo and Ole Silver ... thanks for such a generous offer to help out with string etc. If all else fails, I will be in touch with you. However I see this would be a good opportunity to get the students involved in Ozbow by supporting the endeavours of one of our suppliers. I'm still planning to go through with the order, as long as the person involved is happy to meet the ATO requirements. The problem isn't really with the school admin but the red-tape laden process our government sees fit to impose on the small person. It just seems like such an overkill and unnecessary process. And to think I lived in China and thought their system was a bit over the top!

GrahameA · #6 Post by **GrahameA** » Tue Jul 31, 2007 7:26 am

Arch'

( Call me cynical if you wish. )

It is all part of the "Great GST Event". If you sell stuff you need an ABN and if you sell more than $50,000 you need to add GST to the sale. Plus you get the lovely joy of doing a BAS return every 3 months.

If you sell your bow through an archery shop they should ask you to fill in an exemption form before they hand you the cash - or otherwise withhold (and don't quote on the value) 50%.

Surely this is Australian government bureaucracy gone mad???

The problem isn't really with the school admin but the red-tape laden process our government sees fit to impose on the small person. It just seems like such an overkill and unnecessary process. And to think I lived in China and thought their system was a bit over the top!

But we are working very hard to catch up and surpass them. (And people wonder why so many small businesses struggle.)

As always my line is if you are unhappy with it have a few words with your local member to see how little they care about it.