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How to treat financials of two different enterprises under the same company structure

Discussion in 'Accounting, Tax & Legal' started by Steady, 23rd Sep, 2010.

  1. Steady

    Steady New Member

    Joined:
    23rd Sep, 2010
    Posts:
    1
    Location:
    VIC
    Hello all,

    Can anyone tell me if I can treat the financials for two completely different businesses (ie a computer related business and a food retail business) as one business if they operate under the same ABN.


    If one business makes a loss can it offset the other business which makes a profit?

    Does anyone know if there is an article on the ATO site which answers this question.

    Thanks.
     
  2. PJCA

    PJCA Member

    Joined:
    30th Oct, 2009
    Posts:
    18
    Location:
    Adelaide
    You can register multiple businesses on the same ABN.

    Extract from ATO web page:
    Example: an entity with several business enterprises
    If your entity is currently operating a cafe, a take-away food delivery service and a newsagency from different premises, you will have only one ABN that will cover all of these activities.
    ( ABN registration )

    Losses may be offset between activites (assuming they are not capital losses). Also consider ordinary company loss rules when using carry forward tax losses.