Tax Deductions You’re Entitled To as a Trades and Services Business Owner

What is an ABN? An ABN (Australian Business Number) is an 11-digit number issued by the Australian Business Register that identifies your business to the government. It 's used for tax and other business purposes, and it can also be used by the general public to find your business on the ABN Lookup website. Who needs an ABN? Anyone who is running or starting a business or enterprise in Australia needs an ABN. If you’re not sure if your activity is regarded as a business, ask yourself the following questions: Will it involve commercial sales of products or services? Is the activity more than just a hobby? Ie. Do you intend to make a profit from it? Will you be repeating the activity? Will you keep records of the activity in a business-like way? If you answered ‘yes’ to the above questions, you will almost certainly require an ABN. An ABN is essential for various reasons. It allows businesses to register for GST if their annual turnover exceeds $75,000, enabling them to claim GST credits and comply with tax obligations. Having an ABN also ensures you can issue valid tax invoices, making it easier to manage transactions and maintain professionalism with clients. Additionally, an ABN is often required to work with other businesses, apply for government grants, or secure financial assistance. Other situations may also require creating ABN, such as acting as the trustee of a deceased estate, super fund or a Self-Managed Superannuation Fund (SMSF), operating a charity, or leasing an investment property. Why do you need an ABN? When running a business in Australia, there will be many instances where you will be required to provide an ABN. These may include (but are not limited to) the following: Applying for a business bank account: banks or financial services providers often request an ABN as part of the documentation needed to open a business bank account as it helps them verify the legitimacy of the business. Business tax deductions: to claim tax deductions on business-related expenses, the ATO generally requires that your business have an ABN. Similarly, businesses that want to claim fuel tax credits for fuel used in business activities need to have an ABN. Identifying your business: when invoicing or placing orders, many clients and suppliers may require your ABN to help them verify your business's legitimacy and ensure smooth and transparent dealings. To get an Australian domain name: to register for a web address that ends in “.au”, you must be able to prove eligibility in Australia and it’s recommended that you have an ABN to do so. Registration as a charity: charities and non-profit organisations seeking registration with the Australian Charities and Not-for-profits Commission (ACNC) generally require an ABN. Government contracts: businesses engaging in contracts with the Australian government or its agencies usually need an ABN. Claim GST credits: to claim money back on GST that you’ve been charged on business supplies and expenses, the ATO will require that you have an ABN. Employer obligations: if you have employees, you need an ABN to meet your employer obligations, such as withholding taxes from employee wages. When do you need to register for an ABN? You need to register for an ABN prior to incurring income or expenses relating to the business. When you fill out the application form, you will be asked for the date that you expect to start your business. This date, however, cannot be more than six months in the future when you apply. Prior to applying for an ABN number you will need to have undertaken some relevant ‘commencement activities’ to prove that you are serious about setting up your business. These activities could be as simple as setting up a social media account or website, or purchasing business cards and stationery, or they could be more substantial steps such as purchasing a business; leasing a premises; obtaining insurance, equipment or stock; or applying for finance. It’s not essential to have undertaken all these activities prior to applying for an ABN number, but a certain number will be necessary to prove the legitimacy of the business. One thing you do need to do before applying for an ABN however, is to decide on the right structure for your business, for example, a sole trader, partnership, or trust. Read our article on how to structure a new business here. What documents are required to apply for an ABN? To apply for an ABN you will require the following documents: A tax file number (TFN) and the TFNs of any associates – for example, partners, directors, and trustees The date your ABN is required (the date you expect to start any business activities) An entity legal name, which will appear on all official documents or legal papers Business contact details including an address, postal address, email address and phone number The business’ physical location(s) Depending on your circumstances, there may be additional documents that you need to provide: If you are using the services of a professional advisor, you will need to provide their Australian Financial Services licence number If you are using a registered agent for your tax or BAS preparation you will need to provide their registered agent number. If they are authorised to make changes or update information on behalf of the entity, you will also need to provide their contact details If you have previously held an ABN, Australian company number (ACN) or Australian registered body number (ARBN) you will need to provide these. What’s the difference between an ABN and an ACN? Unlike an ABN, which is legally required for all Australian businesses, an Australian Company Number (ACN) is only required if your business is registered as a company. If this is the case (read our article on structuring a business here), then you'll need both an ABN and an ACN. This unique nine-digit number is issued by ASIC and must be displayed on all company documents. Click here to learn more about registering a company . How much does an ABN cost? Registering for an ABN through the Australian Government’s Business Registration Service is completely free. Of course if you choose to use a tax practitioner or another service then that may involve fees, but the process is actually very straightforward, so it's worth having a look yourself before asking for help. How do you apply for an ABN? There are two ways to register for an ABN: Via the online application form on the Australian Business Register website Via the online application form on the Business Registration Service’s (BRS) website . The advantage to applying through the BRS is that you can register a business name at the same time as your ABN application. If you don’t, you’ll need to go back to the Business Registration Service to register your business name. How long does it take to receive an ABN? If you have provided all the relevant information, and your application is successful, you will receive your 11-digit ABN immediately. If, after applying, you receive a reference number it means that the ABR may require additional details or information. Applications are usually received within 20 business days and they will contact you if further information is needed. How do you update your ABN details? To update your ABN details, including your business addresses, contact details, and business activities, simply log in to the Australian Business Register (ABR) online services. Once logged in, select 'Update ABN record' and follow the prompts. Changes made online take effect immediately. If online access isn't available, you can update your details by contacting the ABR directly, consulting your registered tax professional, or completing and mailing the appropriate form. It's important to update your ABN details within 28 days of any changes to your business. What if I forget to update my ABN details? Everyone makes mistakes every now and again, but it really is best to do your best to keep your ABN details up to date. If you forget, the Australian Taxation Office (ATO) could impose a fine ranging from $220 to $4,400, depending on the severity and frequency of the oversight. Also, outdated ABN information can hinder your access to government assistance, especially during emergencies. Government agencies rely on current ABN details, so inaccurate information may result in missed opportunities for support. Starting a business? Zeller has your finances covered. We know you’ve got a lot on your to-do list, but thanks to Zeller you can cross off ‘open a business transaction account’ in as little as six minutes. Plus, with a suite of tools to help you accept payments, manage your expenses and track your cash flow, Zeller will ensure you start your business on solid financial footing. Open a free Zeller Account today and you’ll gain access to: Zeller Transaction Account : a free account to store your funds. Zeller EFTPOS Terminal : the smart way to accept in-person payments. Zeller Debit Card : an expense card that helps you stay on top of business spending. Zeller Invoices : a platform for sending unlimited invoices and getting paid online. Tap to Pay with Zeller App : the easiest way to take payments with no hardware required. Zeller Virtual Terminal : a simple solution for taking payments from a web browser. Zeller App : one convenient app for managing all your business finances from anywhere. And there’s more! We’re constantly updating our tools and features, so stay up to date by signing up to our newsletter . You'll get all the latest Zeller news and updates straight to your inbox.

It’s common to charge a call-out fee, especially in an emergency. In Australia, many trade and service providers charge a call-out fee to recoup the cost of time spent assessing a potential job. Others stand by their "no call-out fee" policies, and the incentive it gives clients to consider booking with them. But do call-out fees pay off in the end, or could they do more harm than good? There are no hard and fast rules about whether to charge a call-out fee. However, if you do choose this common strategy, it's important to understand how it fits into your business operations. Keep reading to learn about the pros and cons of charging a call-out fee and, if you decide to implement a call-out fee policy, how to make collecting payment as seamless and hassle-free as possible. What is a call-out fee? A call-out fee is a fixed fee charged by a service provider or tradesperson for attending a customer’s property to assess (and potentially fix) a problem. The amount charged may vary, depending on the urgency of the problem, time of day, or if the call-out occurs outside of usual work hours. A call-out fee is generally independent of the usual materials and labour fees. What is covered by a call-out fee can differ from business to business, but generally it will compensate a merchant for some, or all, of the following: time taken to travel to and from the client’s property time spent investigating and diagnosing the problem time spent preparing a quote, including researching the cost of materials and labour personal time sacrificed to attend an emergency outside of normal work hours. Is it common to charge a call-out fee? There are a range of reasons why a trade services business might charge a call-out fee, and it isn’t an uncommon practice. In Australia, there are no laws or regulations relating to the implementation of a call-out fee. For that reason, practices vary across industries and locations. You might consider introducing a call-out fee for any number of reasons. You’re regularly called out for emergency or out-of-hours work. Your customer-base covers a large geographic area, so extensive travel is regularly required. Your line of work requires a high level of expertise and experience to assess the requirements of the job, before any work can be done. Preparing a quote involves a significant outlay of time and research. Choosing to charge a call-out fee is a personal decision, based on the nature of your business. That said, if you do decide to introduce a call-out fee, this should be communicated clearly to avoid confusion. The difference between a call-out fee and a minimum charge An alternative strategy to charging a call-out fee is to set a minimum fee for a job. Rather than charge a separate fee, you would charge a minimum hourly fee to cover your time — irrespective of the time spent on the job. This approach can be effective for small jobs, which may not be otherwise profitable. The advantage of a call-out fee is that you can collect payment for your time, even if the job doesn’t go ahead. This is particularly appealing for tradespeople who may be participating in a competitive quoting process, where there is no guarantee of getting hired. The advantages of charging a call-out fee 1. Avoids time-wasters Charging a call-out fee is one way to ensure that you are compensated for the time and effort involved in inspecting and quoting for a job — irrespective of whether the project goes ahead. Some tradespeople may choose to waive the call-out fee if the client proceeds with the work, but if the customer decides against hiring you for the job, at least you will have received compensation for your efforts. 2. Provides transparency As surprising as it sounds, being upfront about your call-out fee can say a lot about your approach to business. Customers appreciate certainty, and by providing clarity around your call-out fee you’re ensuring they won’t be taken aback when the time comes to pay. 3. De-risks your finances Charging a call-out fee is a great way to ensure that your business stays profitable by placing a value on the time it takes to assess a job. This can be especially important if you work in a competitive landscape, where customers may seek quotes from multiple businesses and  there is no guarantee of winning the job. That said, be aware that unreasonable fees may work against you. The aim is to strike the right balance between compensation and competitiveness. Disadvantages of charging a call-out fee 1. Some customers may dislike it Customers may be put off by the fact that you charge a call-out fee — especially if it isn’t an emergency or out-of-hours request. Some customers may be reluctant, and skeptical of paying for a visit. Any negativity can be mitigated by providing clarity about your charges, and what the fee is for. You might also consider waiving the fee on a case by case basis, as an incentive for the customer to hire you. 2. Your competitors may not charge a call-out fee It can be hard to compete with businesses that offer free call-outs, but that doesn’t mean you shouldn’t stick to your guns. Be very clear about the value you bring — including time and expertise — to the customer during your initial visit, and use it as an opportunity to show them that they have paid for an excellent customer service experience. Best practices for implementing a call-out fee policy Once you’ve decided that introducing a call-out fee is right for your business, there are some things you can do to ensure that the process runs smoothly. Be upfront about your call-out fee Failing to advise of a call-out fee in advance is an easy way to lose a potential customer — as well as any future customers they might have referred your way. Be clear about your fee and include these details on your website and other touch points. Where possible, also communicate your fee in writing. By being upfront, you can manage the customer’s expectations, and turn a call-out into a high-value customer experience. Be consistent If you’ve made the decision to charge a call-out fee, be prepared to explain the reasons why. Don’t confuse customers by waiving your fee at the first sign of an objection. This might seem like a good idea at the time, but it can compromise consumer trust in the long run. Set a clear policy around what the call-out fee involves, and under what circumstances you will waive it. For example, if you are prepared to waive the fee if someone hires you for a job, let it be known that that is your policy. Take payment on the spot If you need to go back to the office to type up and then send an invoice, you may never recoup your call-out fees. Even if a customer does follow through and pay the invoice, chances are it will be late. The average wait time for invoice payment is 25.5 days . Instead, consider collecting payment on the day. It’s unlikely your customers will have the right amount of cash on them, so being able to take card payments is essential. With Tap to Pay with Zeller App you can accept card payments right from your smartphone (iPhone or Android). This fast, seamless payment method may also help to smooth over any objections by making payment simple and hassle-free for the customer. Call-out fees are not an uncommon practice. The key is to understand the reasons why you need to charge a call-out fee, and communicate your fees to potential customers with clarity and confidence. Combined with exemplary customer service and an easy way to accept payment from customers, introducing a call-out fee can be a winning strategy to help keep more money in your business. Not yet using Zeller? With no need to visit a bank and no lock-in contracts, creating a business transaction account is quick and pain-free. From payments, cards to online invoicing ; Zeller has got you covered with everything you need to run a successful business in one place. Learn how Zeller Transaction Account compares to traditional business bank accounts in Australia .