Leasing farm and abn

4 posts

Member for

9 years 1 month
Last seen: 12/19/2021 - 18:07
Joined: 06/05/2015 - 20:43

Leasing farm and abn

Hello all, I have purchased a small holding of 100 acres and will be building on it over the next 12 months. In between time, I have someone who wants to lease the rest of the land which will be for about $4000 annually. He states that I need an ABN however I won't be earning $20000 this year (although I would think once I get underway after the build I hope to make this). Further I need Personal Liability insurance. Can you please advise? Thank you kindly
Last seen: 09/17/2019 - 18:07
Joined: 11/23/2011 - 09:38

Hi,

welcome to the forum. I suggest that you have a talk to your accountant about the setup for your business. Registering your business name and getting a PIC code if you are going to run livestock and getting a business number so that you can claim your inputs. I think it will be worth having a discussion with him about it. If you are only going to run your property as a hobby farm, then you don't need to register as a business. However, even if you are only going to run the property as a hobby farm, if you are going to run livestock on the property then you will need to get a PIC, Property Identification Code, for the property.

 

Regarding the personal liability insurance, I have farm insurance that covers all my property, outbuildings and fences and which includes all vehicles and personal liability cover too.

 

Regards,

Barb

Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi Jusfarming,

It is not compularsy to have an ABN until your turnover is above $20k, that said having ABN tends to makes it easier to do bussiness with other companies.

According to the ATO, "When a payer makes payments to suppliers for goods or services to the business, those suppliers generally need to quote an Australian business number (ABN). They can quote their ABN on an invoice, or some other document that relates to the goods and services they provide.If a supplier does not provide its ABN, the payer may need to withhold an amount from the payment for that supply – this is referred to as 'no ABN withholding'.

Certain suppliers are not required to quote an ABN to a payer. In these cases, the suppliers can use the form Statement by a supplier to justify the payer not withholding from the payment to the supplier.

Regarding the personal liability insurance PM me at info@farmstyle.com.au with your details and I will have an insurance broker that I have dealings with contact you.

Regards,

Charlie

Last seen: 07/15/2024 - 18:36
Joined: 02/28/2011 - 14:19

Hi Jusfarming,
 
I know its an old post but just jumping in to let you know that Farmstyle Insurance has recently launched an insurance product which has been designed for hobby/lifestyle farmers whose property is between 2ha and 100ha and generate no more than $50,000 in turnover per annum from lifestyle farming activities. Cover is for home (building and/or contents) and liability (personal and farm) with the following optional covers available for purchase on the platform:

•             Farm property

•             Motor (farm and private)

•             Theft.

You can find out more and get a quote at
https://www.farmstyleinsurance.com.au/

Regards,
Charlie

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