Hi! I am considering starting a small business from home relating to a craft hobby that is starting to pick up pace. I'm still in the market research stage but I've come up against an issue that could be an instant deal breaker.
I live in a rental property. I reviewed our lease, which doesn't have any clauses preventing a home based business, but I reached out to our landlord and agent as a courtesy to make sure it wasn't going to cause any issues.
Landlord says she's happy for me to do it, thinks it's a great idea as long as I don't register an ABN – which is a bit contradictory. She is under the impression that if I register an ABN then our residential lease will automatically convert to commercial lease and she will have to pay GST on the rent she collects.
That just doesn't sound right to me. To be clear, if I proceed:
- this will not be my primary source of income
- there will be no customers coming to the home
- there is no dedicated space for the business, I have a desk and cabinet set up in the corner of my dining room
- there will be no business signage or advertising on the property
Is she right?
Thanks in advance for any advice.