Are there any Australians here?

Hi guys,

I live in Australia and have been doing online stuff for a few months now.

I was studying last year, but got sick - cancer - and while having chemo, discovered that I can actually make money online.

I am now receiving centrelink payments, and am wondering how you go about declaring your income? I am making it from several sources - ie, Adsense, domain sales, and my membership site. Each of these things is costing me money fristly to set it up, but I am making the money, plus a little extra.

What I need to know, for you people earning money - how do I declare it? Do I need to pay tax on my earnings, and how do I do that?

At the moment, since I am working hard to promote my traffic site, everything that I earn goes to promote, or develop that site. So I have not had any money for spending on myself or stuf like that.

Hopefully there is an Aussie in the room who has been in a similar situation, 'cause I would really appreciate your input.

Cindy

 

How much are you earning? If it isn't much you can classify it as a hobbie and not pay any tax. If you are making more than a couple of thousand a year it would be best to declare it and pay tax on it.

 

I wouldnt worry about this until you are earning considerable money, even then you will have plenty of time to get it sorted in time and big brother doesnt watch you 24/7 I would simply register an ABN and delcare it that way as a business, if you start earning over 50k a year then register for GST, but right now I wouldnt worry unless you are already making heaps.

 

Thanks guys. Am not earning 50k... yet. Ok, no-where near it.... I think I need to tell someone about the money I am earning so far though, as I don't wanna get caught in a position where I have no $$ left next year... if they decide to tke away my payments.

 

UM **** YES I"M AUSTRALIAN!!!!

I'm not getting centrelink payments - too complicated and I'll probably end up getting more than I should which will end up in all drama's

To be honest, I am screwed this year tax wise... hopefully it just slips past unnoticed...

I registered a business - I am going to do everything under the banner of it now. That way I can also claim the money I spend (everything I make online gets re-invested)... whereas if it was personal I would still get taxed no matter how much I spent

I know business accounting, but I've never done personal accounting before! I don't know what to submit etc.

 

Oh yay! I didn't know you were an Aussie

When you say you registered a business, do you mean got an ABN number, or registered a business name etc.

I want to be able to tell Centrelink about the money I am earning, but because every cent is going back into the development of my sites, they would take my money away and I would end up with even less - or that how I think it works.

I can't even call them to ask them about it, because the make a note on the computer that I called, and then hunt me down for all of the info on the money I earned!!!

 

Yes, I got a registered business name, an ABN and even a domain!

That's one of the main reasons I registered a business - you only pay tax on profit, not revenue

Personal you have to pay on revenue (which is rubbish)

Unless you register ($100 for a year, which I would have EASILY paid in tax if I hadn't registered) you will have to pay tax on all your revenue.

If you want some help on setting up the business structure to minimise tax, shoot me a PM or add my msn.

 

great - will add you to msn.... but in the morning I need sleep

Catch u tomorrow, and thanks heaps for the help!

 

It's not midnight yet - you slacker!!!

I saw you added me but you were offline. I was like wow I got blocked quickly!

 

Gday

You'll be right for the time being under the ATO's hobby provisions, it use to be a cap of $5k but I'm led to believe it's now up to $20k presuming that it's not your primary income (which is sort of logical, it would cease to be a hobby). Unless your working online professionally, keep it a hobby, don't register for an ABN. *HOWEVER* if you need to accept payments under a "business name" you can register a business name as a sole trader + still fall under the hobby provision, it's how I've been trading online since 96 up until last year. Here in WA it's about $75 for 3 years, probably more in other states. A business name will also allow you to open a bank account in that name to accept cheques at what not.

For the others, with me it's a pty ltd company + family trust. I've got no idea why, I gave is to some professionals and they sent me the bill...and now I have to remember to put income tax aside when I pay myself....the burden of working online for yourself

 

Sorry but simply not true. yes, there's lots of great advantages to having a company, like paying bills in pre tax money, but a sole trader can offset expenses in the course of their business, if they are claiming the revenue as a business activity. If it's a hobby the don't have to declare it unless it goes past a certain level (and if they aren't declaring it, they can't offset). For most people out there, the expense of setting up a Pty Ltd Company, the paperwork and compliance costs isn't worth it if it's a part/ time smallish income.

 

It's a business, not a company.

It's not a hobby, it's my main income source.

So yes, it is true

 

In your case it's a business, you've got the details so I'm not sure what you're saying here. You did however suggest previously that a sole trader without an ABN/ Business name pays tax on revenue and not profit and that is wrong, because if they are claiming the revenue in their tax return (ie not as a hobby) they can offset the income with the expenses, it's a STANDARD tax deduction in the same way uniforms, travel for work, union fees etc are all tax deductions for normal employee worker bees. The ATO has always allowed tax deductions for expenses related to your income in the gathering of that income, aside from travel to and from work and non-uniform expenses...an example, when I was still a worker bee I could and did claim mobile phone calls I made on my personal mobile that were work related. The same rules apply to sole traders who aren't registered as a business.

Simple rule: if you have to declare the income, you can offset expenses.

 

No I didn't. I suggested an individual pays tax on revenue, not a sole trader. I am a sole trader!

An individual can claim only a couple of hundred dollars on work related expenses.

 

True, but if that individual is earning enough from their websites that they have to claim the money as income, then they can claim the expenses.

I think we're on the same path...sort of

Moral though for others: it's much easier keeping it at hobby status and not declaring it, after all, if you're expenses are greater than your revenue, you probably should be in another game.

 

Yes it's good to keep it as a hobby, aslong as you don't earn too much. I unfortunately am pretty borderline, so it's easier just to spend $100 and register the business than to find out come tax time I have earnt too much and the tax man will love me

 

Ta guys, I think for my Centerlink payments I need to declare them, but for tax it looks like I should be ok for now At least that's what I hope... I guess I will find out for sure at the end of the financial year.

 

Good luck for your cancer treatment.

 

Thanks heaps I am doing pretty good now, am through most of the yucky stuff - and even have hair now....lol.