5 {{ upvoteCount | shortNum }}
5 {{ upvoteCount | shortNum }}

Help with Tax In Australia.

by ineedfreedom
4 replies
  • OFF TOPIC
    • |
Hey Guys,

Just want to say i will probably go see an Accountant soon, but i would like to see what your opinions are first.

I am employed and earn $70,000 a year at my current job..

But i am also playing with affiliate marketing, Adsense, clickbank etc..

Is there a certain amount i can earn with my sites before i need to start getting together my receipts and making an ABN business number?

Should i have a business bank account that i should be transferring my (personal) money to and paying from every time i:
- hire someone on freelancer,
- Pay for Domain/hosting
- Pay for Advertising
- Receive Money

I see it as a hobby at the moment as i am not seeing any real income coming from it at the moment, but i am also spending money on getting them up and running.

(if i am meant to be paying tax, can i claim all the things i have purchased (seo, site design etc.. ) if i have receipts for them but in my own name)

Thanks Guys, i had a search on the forums and could not find this info.
  • Profile picture of the author Frank Donovan
    Originally Posted by ineedfreedom View Post

    Thanks Guys, i had a search on the forums and could not find this info.
    That's because your questions can only be answered by a qualified professional in your particular jurisdiction. You'd be unwise to take any tax advice you receive on a public forum.

    Australia is unlikely to be different from most other countries in that all income is potentially subject to tax, but you should go talk to an accountant or tax specialist about your specific situation.

    ..
    Signature


    {{ DiscussionBoard.errors[9580120].message }}
    • Profile picture of the author tagiscom
      I do see an accountant, with all this IM stuff, and this is what l usually do!

      Just forget about it, and put in a log stuff that isn't recorded online, then after the end of the financial year, go online and add up and print out all transactions over the previous year!

      So you could write out how much you pay each month for Aweber, but it is much easier to add up a years worth and put that into your log book!

      But as said before all offline IM transactions need to be recorded!

      And l am not an accountant, so if you end up at the end of a dark alley and some boofy guys with baseball bats, be it on your head!

      A certain amount? Accountant question!

      Have a business account, l don't have one, but all my online stuff is still in start-up mode!

      Signature
      Archimedes Forum, Sign up l won't bite
      {{ DiscussionBoard.errors[9580414].message }}
  • Profile picture of the author laurencewins
    I am Australian. I have an accountant.
    I am on a Disability Pension and I do earn money from my writing.
    I keep an excel spreadsheet with all income and expenditure.
    Then I do a tally of it all at the end of the year and give a copy of my totals to my accountant.

    I do have an ABN. According to my records, I don't earn enough to pay tax.
    However, that is also due to the Pension.
    I recommend talking to your accountant and asking what info he needs form you.
    Nobody here can tell you what to do with YOUR business.
    Signature

    Cheers, Laurence.
    Writer/Editor/Proofreader.

    {{ DiscussionBoard.errors[9580913].message }}
    • Profile picture of the author Greg71
      My understanding is this, and I am an Aussie with Cert 4 in Bookkeeping.

      You have a job with $70k, which your employer deducts payg tax for you, so you do a return each year and throw your expenses in and get a refund.

      Your IM is a separate activity, but it is the same basic approach. Calculate all the income from IM, then subtract all the expenses related to IM. This leaves you with taxable income. You pay income tax on your taxable income.

      You only need an ABN in order to deal with other businesses, like if a business contracted you to build them a website or something. Your invoice has to have an ABN, otherwise they have to withhold 46.5% of the invoice and remit it on your behalf to the ATO. You then claim it back when you do your tax return.

      So you just have your various income activities separated from each other and your tax return is based on all of it combined.

      Your IM expenses can't be offset against your job income and visa versa. As in the case where your IM expenses are more than your IM income. You just carry the loss forward to next year's return.

      Does that help?
      {{ DiscussionBoard.errors[9583001].message }}

Trending Topics