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Pay tax from IM in OZ

by coolbutters
7 replies
Hi guys and gals,

Newbie question for Aussies that are in IM.

Do you pay tax on the earnings you make from IM, and if you do, are you making deductions on your tax return for the same.

Corey
Free Web graphics: www.graphicsoffer.com
#graphics #mrr graphics #pay #plr #tax
  • Profile picture of the author terrapurus
    Yes Coolbutters, it is taxable income. You can go the cheap route first up and be a sole trader. Or the more expensive route and set up a company structure. What is good for you really depends on your personal circumstances. Also, if you wanted to operate as a sole trader but want to operate under a business name other than your own name, then you will need to register a business name. The government is actually quite helpful, even if they don't give specific advice. Start your search with the depart of fair trading (business name registration) ... also check out your state government body on starting a small business.

    You could call it a hobby (for tax reasons), but the test is whether you have an expectation of making a profit. That is the key. And if you try and hide it from the government and it comes to you electronically, they will know about it (how do you think they can prefill your tax return online for you every year ....).

    I looooove paying tax each year. It means I made moneeeeeeeeey!!!!
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  • Profile picture of the author BloggerHigh
    death, taxes and hard disk crashes. No avoiding them.
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  • Profile picture of the author Ben_R
    I looooove paying tax each year. It means I made moneeeeeeeeey!!!!

    Dude
    agreed that's how I think as well
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  • Profile picture of the author whateverpedia
    Originally Posted by coolbutters View Post

    Do you pay tax on the earnings you make from IM, and if you do, are you making deductions on your tax return for the same.
    Yes, and yes.

    The income you receive HAS to be declared. You can offset that with expenses (hosting, domain registration, advertising costs, etc.) though. Don't make the mistake of thinking that because income is derived online that you can get away with it. In order for you to get your hands on it, it has to go through a bank account, which is connected to your tax file number.

    All that aside, if you leave the money in your PayPal account (not recommended), or set a high limit on your minimum Clickbank payment for example, you don't have to declare it, or pay tax. It's only when it hits your Aussie bank account that it becomes taxable.

    As others have pointed out, if you need to pay tax, it means you're making a profit. Be happy with that and "render unto Ceasar".
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    Why do garden gnomes smell so bad?
    So that blind people can hate them as well.
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  • Profile picture of the author PoweWhey
    or set up a paypal account in Samoa with a bank account there. Just joking. I have the same issues living in Germany and it is better to pay.
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  • Profile picture of the author George Phillip
    There are numerous benefits for declaring the income made from IM. Such as a business expense account.

    The OZ Govt makes it easy for us to reap the benefits of earning another income(depending on the tax bracket you fall into).

    And then there is the $196 million dollars that Commercialisation Australia’s Volunteer Business Mentor Network just set aside.

    With a VC / Entrepreneur as CEO and $196 Mill funds for investment, CA is not your typical government program
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    • Profile picture of the author davidmeeonline
      It's much of a muchness really, Leave it in paypal and use it for your business ventures straight from paypal. and not declare it. (open to legal action)

      Or just declare everything, expenses and income, and pay tax if you made a profit for the year!
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