All Sole Traders posts

Re: Asset disposal closing business

nicolas974 — Thu, 27 Feb 2020 07:34:50 GMT

Thank you MarkA. That s great. I have read through and understand that this will be treated as a taxable sale. However what about the market value? What if I want to sell this asset to a family memmber a very low price say $100 plus GST but the market value is $30000 for argument sake. Should I report the GST for a $100 taxable sale to a family member or would the ATO calculate the market value of the asset automatically? Thanks.
Nm

Re: Travel Expenses

Doc — Thu, 27 Feb 2020 05:51:49 GMT

Hi, one more point came to my mind from the paragraph 45 of TR 2019-D7. In this example the employee's both work places were related as he had only one employer.

In my case there is no relation between my employer in Brisbane and my private work in Bundaberg.

Doe sit mean that i have two different places of regular work and hence travelling expenses not deductible

It doesnt matter if two work places are connected with each other or not and my travel expenses are still deductible as my normal place of work and home is Brisbane?

Re: Asset disposal closing business

MarkA — Thu, 27 Feb 2020 05:39:53 GMT

Welcome to the community.

What you are describing is essentially GST and the disposal of capital assets. Refer to the link I have included and it should provide the answer you need for when you sell, transfer or otherwise dispose of a capital asset.

Kind regards

MarkA

Re: GST payable on a solar system purchase

John3 — Wed, 26 Feb 2020 19:42:18 GMT

Thanks Rachel. You have made it very clear.

Re: Tax on 2nd job as sole trader

BrettT — Wed, 26 Feb 2020 18:51:10 GMT

Hi there, I have a question that I believe is related here.

If my income from my job is lets say $50,000 but my business that i also run on the side as a sole trader has made a net loss of $20,000 (after purchasing machinery, advertising etc), would my income as a whole drop down to $30,000 for tax purposes as i would be putting my income from my regular job into the business to make said loss?

Thanks in advance.

Re: Travel Expenses

Doc — Wed, 26 Feb 2020 04:55:27 GMT

Thanks a lot for your input guys

Re: Travel Expenses

KylieS — Wed, 26 Feb 2020 03:16:45 GMT

The same rules apply and yes your expenses would be deductible.

KylieS

Re: Travel Expenses

Doc — Wed, 26 Feb 2020 03:12:11 GMT

Hi

Para 45 if the ruling applies where an employee works for an employer and the employer send this employee away.

But in my case I live in Brisbane and work for an employer 1 day a week. The employer is not sending me to Bundaberg for any duties.

I go to Bundaberg for a private clinic as a sole trader by my choice.
Will the travel and accommodation expenses still be deductible in my case?

Re: Travel Expenses

KylieS — Wed, 26 Feb 2020 02:43:33 GMT

Hi ,

Motor vehicle expenses incurred in travelling between home and a work location that is not a regular place of work are ordinarily deductible, as well as the costs of travelling from that location to home.

The motor vehicle expenses of travelling from your home to a work location in Bundaberg and back again on the same day, once a fortnight, are not expenses of travelling to a regular work location and are deductible. See paragraph 45 of TR 2019-D7. Further, it does not matter whether you are carrying on a business or are an employee. The same rules apply.

Thanks

Kylies

do i pay GST

Lingling — Wed, 26 Feb 2020 02:01:42 GMT

I am going to take a job offer, which I need to provide the company my ABN to get paid $100,000 annualy. If I take this offer, I will pay my own income tax and super; and I need to use my own tools for the work. Do I need to pay GST as well?

Re: GST payable on a solar system purchase

LydiaA — Wed, 26 Feb 2020 01:36:56 GMT

Hello Rachel

Thanks for this - very useful.

Re: mygovid

Annieb — Tue, 25 Feb 2020 11:18:50 GMT

I have a perfectly usable oppo RS9, which is running android 6.0, I have no intention of replacing my phone which has nothing wrong with it, I will have to go back to submitting paper BAS, I wonder how many othe people are going to have to resort to this, not very effecient for the ATO having to process all this paper.

Re: Wages & self employed

Alice17 — Tue, 25 Feb 2020 08:37:45 GMT

Thank you

Re: mygovid

playtime38 — Tue, 25 Feb 2020 05:18:51 GMT

Same thing with me - and I had to buy an iphone 5c and it worked - bought reconditioned $125. However I see Glen Hasslman says from free accounting software com au that he bought and ipad or similar android for $60 and it works well with mygovid.

Re: Wages & self employed

macfanboy — Tue, 25 Feb 2020 04:12:40 GMT

The tax-free threshold applies to ALL sources of income, not individually.

You are taxed on your total taxable income.

Wages & self employed

Alice17 — Tue, 25 Feb 2020 03:09:20 GMT

Hello, for the last finincial year I have been part time employed on wages and have worked part time as 'self employed' (sole trader). I am trying to work out how much tax I will be up for with my self employed income. Looking at ATO guides for self employed it says there is no tax for the first $0-$18,200. Will this still apply to me as I would be claiming the tax free threshold from my wages job (i've been working there for two years). I will have made over $18,200 so will be in the next bracket.

Does my wages income affect what tax I will have to pay on my self employed income in any way? Or will they be dealt with separately?

Thank you in advance

Re: mygovid

ChrisR — Tue, 25 Feb 2020 01:24:42 GMT

Thanks for your post.

It is likely that you will need to update your smart device. It doesn't have to be an iPhone but it does need to be a compatible smart device. The myGovID app is compatible with most smart devices using either:

iOS 10 or later on Apple devices
Android 7.0 (Nougat) or later. This excludes devices that use the Android Go operating system, such as Android One.

For more information, have a look at the How do I get set up? page on the myGovID website.

Thanks,

ChrisR

Re: Travel Expenses

Doc — Mon, 24 Feb 2020 23:14:06 GMT

please do provide some information as I'm still very unclear and uncertain as to what can be deducted and what can't

Re: Travel Expenses

KylieS — Mon, 24 Feb 2020 22:55:23 GMT

Hi , and ,

Interesting information and different scenarios provided.

You all make great points, we will do some research and add to the conversation as soon as we can.

KylieS

Asset disposal closing business

nicolas974 — Mon, 24 Feb 2020 10:24:51 GMT

Hi,

I m a sole trader and own a caravan under my business name. I m closing my business and would like to give the caravan to a relative. I have claimed GST credits when I puschased the caravan a year ago. Will I be liable to any GST for this donation?

Thank you

NM

Re: Leasing Rural Farm Land

AriH — Mon, 24 Feb 2020 02:07:00 GMT

As you are not a primary producer different rules will apply to you as the lessor. It appears fences will fall under capital works deductions and the link will help you work this out.

Thanks,

Ari

Re: Late Tax Return

macfanboy — Sun, 23 Feb 2020 00:09:58 GMT

If you have an ABN then the ATO expects you to lodge a tax return every year regardless of profit or loss.

Leasing Rural Farm Land

Frances — Sat, 22 Feb 2020 06:32:19 GMT

Fences that have to be replaced on rural Land that is leased to a farmer for cattle grazing, can the owner of that land claim the fencing as an immediate write off?

I know that primary producers are able to claim fencing as an immediate deduction, in the case of the landowner does this have to be depreciated at a rate of 2.5%.

Thank You

Late Tax Return

ImogenBeth — Sat, 22 Feb 2020 02:06:54 GMT

Hi, I only just now found out from googling about various tax stuff that you need to submit a tax return even if your business only earned a dollar and it's well past October and I haven't heard anything from the ATO. I am wondering if I should try to lodge or not as I have an ABN and I made about $6 from my business as a sole trader in the last financial year, and if I would face a penalty for not realising. In fact I read somewhere a while ago that the tax free threshold for sole traders is $18,200 just like it is for individuals so am wondering if this is still true and if I still need to lodge a tax return? If I don't need to lodge, is it really necessary to file a non-lodgement advice as I have never submitted a tax return before. Also if I earn $0 but still have an ABN next financial year do I lodge a tax return or file a non-lodgement? And if I lose my ABN is there a way to advise this on a tax return so the ato knows I'm not a sole trader anymore if that were to happen? I would appreciate any help regarding this. I am also struggling to find information about whether receiving a government allowance increases that amount that you are taxed for your income or if your income is treated the same as someone who doesn't receive a government allowance? Thanks.

Re: Travel Expenses

Doc — Fri, 21 Feb 2020 03:45:13 GMT

So if i start doing a private clininc in Brisbane as well, then my travel to/from Bundaberg will be claimable?

Re: Travel Expenses

TaxedoMask — Fri, 21 Feb 2020 02:32:48 GMT

To clarify, from what I can see, home to work travel is only deductible if one is classed as an itinerant worker (TR 95/34). Alternatively, if there is a place of business in one location and in the course of conducting that business, there is a need to travel from that place of business (eg. Brisbane) to another place of business (eg. Bundaberg) - then the travel would be deductible.

The problem I see in 's case is that there is no place of "business" in Brisbane. Only employment related activities are conducted in Brisbane, which is wholy separate from the business activity - not withstanding that the nature of the work may be similar or overlap).

So then the travel would only be deductible if the nature of the job itself made travel ...essential (thus falling under the definition of itinerant - para 23 of the tax ruling). I cannot see how this is established in here and thus am of the opinion that the travel to Bundaberg is non-deductible.

Re: Estimating fuel and oil costs using odometer readings

KylieS — Fri, 21 Feb 2020 02:10:06 GMT

Hi ,

All looks good, keep the calculations in case they are requested.

KylieS

Re: Travel Expenses

Doc — Fri, 21 Feb 2020 00:49:03 GMT

wrote:
The point is that home to work is always private unless you are itinerant (which is not the case here). The "home" (in my opinion) is the Bundaberg property - and thats why I would argue that it is not deductible.

Sorry, there is no Bundaberg property. I travel from Brisbane to Bundaberg and come back to brisbane same day.

Also i did some more reading on ATO regarding business travel expenses and it implies that the travel is deductible. So i'm confused now.

"Your business can claim a deduction for travel expenses related to your business, whether the travel is taken within a day, overnight, or for many nights.

Expenses you can claim include:

airfares
train, tram, bus, taxi, or ride-sourcing fares
car hire fees and the costs you incur (such as fuel, tolls and car parking) when using a hire car for business purposes
accommodation
meals, if you are away overnight.

To claim expenses for overnight travel, you must have a permanent home elsewhere and your business must require you to stay away from home overnight.

If you are entitled to goods and services tax (GST) input tax credits, you must claim your deduction in your income tax return at the GST exclusive amount."

Re: Travel Expenses

TaxedoMask — Fri, 21 Feb 2020 00:43:29 GMT

The point is that home to work is always private unless you are itinerant (which is not the case here). The "home" (in my opinion) is the Bundaberg property - and thats why I would argue that it is not deductible.

Since the Brisbane work is as employee and the Bundaberg is as a sole trader - arguing that this from work to work or even linked is a bit of a stretch in my opinion.

If was posted as part of the employment to Bundaberg, I would have argued this differently.

Re: Travel Expenses

Doc — Fri, 21 Feb 2020 00:27:49 GMT

Travelling between your home and your place of business is considered private use, unless you are a home-based business and your trip was for business purposes.

Re: Travel Expenses

macfanboy — Thu, 20 Feb 2020 23:59:16 GMT

Are you suggesting that no travel expenses can be claimed by a sole trader if they are going to the same place?

That only applies to non-abn work, eg employees.

As a sole trader, you can claim deductions for travel you incur relating to your business and the business use of a motor vehicle. If you travel away from home on business you will need to keep written evidence of all expenses. If you stay away for more than six consecutive nights, you will need to keep a travel diary or similar documents.

You can find more information about Business deductions - Travel expenses, Claiming motor vehicle expenses as a sole trader and our Work-related car expenses calculator on the ATO website.

Re: Travel Expenses

Doc — Thu, 20 Feb 2020 23:06:52 GMT

Found below on ATO website. I think if I regularly go travel o same place then not deductible.

"from your home to an alternative workplace that is not a regular workplace for work purposes, and then to your normal workplace or directly home. This doesn't apply where the alternative workplace has become a regular workplace"

Re: Travel Expenses

TaxedoMask — Thu, 20 Feb 2020 22:33:02 GMT

the ABN activities are only conducted in that location. Even if you maintain another home, my view is that its still private in nature.

Re: Travel Expenses

macfanboy — Thu, 20 Feb 2020 21:39:40 GMT

Wait a minute, when has travel and accommodation not been claimable for an ABN holder doing sole trader type work?

Re: Massage Therapist tax

ChrisR — Thu, 20 Feb 2020 08:26:47 GMT

Thanks for your post.

Now that you are running your own business, it is great that you are planning ahead with your income tax. Pay as you go (PAYG) instalments help you do this.

For more information about PAYG instalments and how it works, check out our website.

You have a couple of options when it comes to starting out with PAYG instalments. You can either wait until we determine that you need to start (automatic entry) or you can voluntarily enter the PAYG system (voluntary entry).

You can find out more about how to start paying PAYG instalments on our website. This page is really useful as it also provides guidance about how much tax you will need to pay. Check out the calculators and example.

For more information about how to declare business income in your personal tax return, refer to the myTax 2019 Business and professional items page our website.

Hope this helps.

Thanks,

ChrisR

Re: mygovid

Storman — Thu, 20 Feb 2020 06:31:20 GMT

I have an iPhone 5c, running iOS 10.3.3, but cannot download the myGovID app. I get a message "Cannot Download App... myGovID isn't compatible with this device." Called the ATO 1300 help number, who said it should work (btw, turning off phone and back on again did not help). I usually have no problem with apps on my phone, despite it not being a recent model, and I don't really want to buy a new phone just for this app, so can someone tell me how to get past this first hurdle?

Update... just checked Details for the app in App Store and it starts with iPhone 5S for compatibility, and I guess my 5c is below that. So will the update scheduled for 16 March include compatibility with iPhone 5c, or will I be forced to buy a new iPhone, despite my old-ish one working perfectly well? Thanks

Re: Freelance for an overseas based employer

RodrigoP — Thu, 20 Feb 2020 06:01:41 GMT

Hi ,

Have look at the Employee/contactor decision tool.This tool will give your tax and super obligations you need to meet.

Also have a look at the attached link Running your business from home. This will help you to give you an idea what deductions you may also claim.

Hope this may help you.

Re: Travel Expenses

Doc — Thu, 20 Feb 2020 04:09:05 GMT

And if i go to Cairns for 1 week to work as a locum doctor, will the travel and accomodations expenses be deductible?

Re: Travel Expenses

TaxedoMask — Thu, 20 Feb 2020 03:46:57 GMT

Home to work is non-deductible even if the distance is extremely far.

Based on your facts, you do not exhibit the traits of an itinerant worker. Travel is not deductible.

Travel Expenses

Doc — Thu, 20 Feb 2020 01:49:26 GMT

Hi, I'm a medical practioner working as a sole trader on ABN. I live in Brisbane and worl one day a week in a Brisbane hospital as a PAYG employee. Once a fortnight i travel to Bundaberg to do a private clinin (paid through ABN). Just wondering that am i able to claim the tax deductions for my travel to/from bundaberg and accomodation/meal expenses while i'm in Bundabery every fortnight?

Re: Overpaid sole trader tax

Biggiesmalls — Wed, 19 Feb 2020 22:26:43 GMT

You can request a refund online through my gov and your ATO account
https://www.ato.gov.au/Business/Business-Portal/Using-the-Business-Portal/Request-a-refund-or-transfer/

Overpaid sole trader tax

melissalam — Tue, 18 Feb 2020 11:10:25 GMT

Hi there!

Tonight I completed the quarterly sole trader tax form and made a payment via my banking app, however, I paid the wrong amount ($50 more) that I was meant to pay. How can I go about getting this back?

Freelance for an overseas based employer

kaethomas — Mon, 17 Feb 2020 23:49:09 GMT

Hi,

I'm looking into some freelance work for a US company. I will be working from home and paid weekly via Paypal.

What would be my reponsibilities in terms of paying tax and declaring income?

Thank you!

Re: ABN

Biggiesmalls — Mon, 17 Feb 2020 22:57:32 GMT

This is a self assessment, have you read the eligibility information on this page - https://www.abr.gov.au/business-super-funds-charities/applying-abn/abn-entitlement

From the page - 'there is an intention to make a profit from the activity as demonstrated by a business plan – unlike with a hobby'

If you are 'carrying on a business' and making an income as a tutor and you're not cosnidered an employee then you may be eligible to reactive your ABN.

Re: Estimating fuel and oil costs using odometer readings

TaxNewb — Mon, 17 Feb 2020 15:03:06 GMT

Thanks . Can you please confirm whether the method outlined in my initial post (also copied below) based on the 12 week logbook is an acceptable way to estimate fuel and oil costs?

From initial post:

Can I estimate the total distance travelled for business during the year based on the 12 week logbook as follows:

Calculate the business use percentage of the car using the 12 week logbook as per the link above.
Calculate the total distance travelled during the year using the odometer readings at the start and end of the year as recorded in the logbook (or by using the odometer readings when the car started and/or stopped being used for business if it wasn't used for business for the full year).
Calculate the total distance travelled for business during the year by multiplying the total distance travelled during the year (calculated in Step 2) with the business use percentage (calculated in Step 1).

Given that the 12 week logbook period should be representative of travel throughout the year, this seems very reasonable to me. Is this ok?

After this, the total fuel cost would be estimated as follows (and similarly for oil):

[Total distance travelled for business during the year (km) (calculated in Step 3)] x [Estimated fuel consumption of car (L/km)] x [Average cost of fuel ($/L)]

Re: Hiring a spouse as an independent contractor

TaxNewb — Mon, 17 Feb 2020 14:46:22 GMT

Thanks , I'm super adamant about thoroughly understanding my options. If I do pursue this, I think I'll apply for a private ruling.

Massage Therapist tax

OBT — Mon, 17 Feb 2020 09:43:49 GMT

I am a massage therapist and have just started my business working from home. I also have a part time job as an employee in an office admin role. I pay tax as an employee on that job and I will earn around $30k per year. I'm hoping to earn around $30k per year doing massage as well, bringing my total gross income to $60k. I know I do not need to register for GST as my massage income is less than $75k. However, I'd like to know how I go about calculating how much tax to pay on the massage income? The part time job is taxed at a lower amount as its only $30k but when you add it to the massage income, in total it will be in the higher tax bracket. So I'm a bit confused how it works and also how/when to pay it. Also, as a massage therapist working for myself from home, is that classed as PSI income? TIA.

Re: Tax deductions when getting paid to advertise on car

ChrisR — Mon, 17 Feb 2020 04:43:06 GMT

Thanks for your reply.

We can understand why there may be some confusion when comparing tax deductions. It is important to understand that different deductions have different rules and criteria. Travelling interstate for a work conference is considered to be a travel expense while letting out part of your home is considered to be a rental expense.

For more information about other travel expenses as well as rental expenses to claim, have a look at our website.

Regarding your car expense question, it ultimately comes down to why the motor vehicle is being driven. If having the advertising on your vehicle causes you to do more kilometres than you otherwise need to, an argument could be made for being able to claim a deduction.

If you would like us to take a closer look at your circumstances, you can request an early engagement discussion. For more information about that, check out the early engagement for advice page on our website.

Hope this helps.

Thanks,

ChrisR

Re: about massage job's employment condition

KylieS — Fri, 14 Feb 2020 06:27:30 GMT

Hi ,

We have a tool on our website that will allow you to enter information and it will advise if you are an employee or contractor.

This will also help you work out if you should be being paid superannuation.

Thanks

KylieS

Re: New Small Business Claims

KylieS — Fri, 14 Feb 2020 05:37:19 GMT

Hi ,

The start up costs would be considered capital expenses and not tax deductible. You would not be able to claim these against your personal income.

When the business has income you are able to claim the operating costs against the income.

When you start the business and you are working from home you can look at tax deductions for running a home office.

This information on starting your business might be useful for you. There is also a lot of information on Business tax deductions that may assist.

KylieS

Re: GST charges on government invoices i.e. land tax, council rates etc

KylieS — Fri, 14 Feb 2020 03:17:17 GMT

Hi ,

Thank you for your comments regarding compliance with the GST law and possible over claiming of GST credits. We have passed your suggestions to the GST area.

KylieS

Re: myGovID

NateH — Fri, 14 Feb 2020 00:57:12 GMT

Hi ,

I can understand that you would be feeling frustrated.

The reasons smart devices were chosen was to increase the security of your identity and information by using the security features in the app and the smart device.

You wouldn't need to necessarily buy a new iPad, just a device that meets the requirements mentioned by above. There are a number of low cost options which could be used purely for business purposes and claimed as a business deduction while leaving your other devices for personal use.

myGovID doesn't need mobile reception, it just needs and internet connection to function.

Hope this helps. Thanks, NateH

ABN

WI11 — Thu, 13 Feb 2020 23:29:12 GMT

Hi! I am trying to reactive my ABN and reached the part where I am asked the nature of my activity. Should I choose *In the form of a business? I am a tutor.
I watched the video and said "ABN is for services to my customers ... not for working in someone's else business"

I am working -not full time- for a person, should I give them my ABN. I just would like to do the right thing.
Again a (language) tutor/instructor, working for someone else.

Thanks!

Re: Hiring a spouse as an independent contractor

TaxedoMask — Wed, 12 Feb 2020 23:58:27 GMT

If you're only doing Uber eats and not actually any Uber or other ride sharing then the GST point is fine.

You cannot compare to Airtasker since this is a continued and defined arrangement with a singular person. The substance of the arrangement is what I am saying could be a problem re. the employee/contractor point.

The decision tool is for penalty mitigation. However the burden of proof still lies on you. For hiring your spouse - if you are challenge on grounds other than contractor/employee - its still fair game and you will get the full wack of the penalities. Also doesn't really pass the pub test in my opinion.

If you are still super adamant (and based on your responses you sound like you are) - you should either engage with the ATO directly or see a professional adviser.

Good luck.

Re: Estimating fuel and oil costs using odometer readings

KylieS — Wed, 12 Feb 2020 23:03:32 GMT

Hi ,

Apologies, yes you can estimate your fuel and oil providing us with the calculations if required.

This is another information sheet on car expenses that might be helpful to you.

KylieS

Re: Hiring a spouse as an independent contractor

TaxNewb — Wed, 12 Feb 2020 15:27:33 GMT

wrote:
If you are driving an Uber/other ride sharing services - then you need to register for GST - see here.

"Ride-sourcing is taxi travel for GST purposes. The standard GST registration rule for GST turnover of $75,000 or more does not apply when it comes to ride-sourcing – you have to register for GST regardless of how much you earn." - emphasis mine, see here.

This is not relevant to me. As I've mentioned several times already, I would only be delivering food, not people, via Uber Eats. As far as I'm aware, delivery drivers do not need to be registered for GST if their turnover is under $75k - see here.

Do you mean my spouse's busines related income (i.e. my expenses) are incidental? How would this be incidental? There would be regular office administration work for my spouse (e.g. processing regular fuel receipts and updating spreadsheets).
This refers to the expenditure you want to claim. Eg, for a car - the main purpose was for private/domestic and any business % is so small or insignificant (relative to the rest) that it is "incidental" - picking up cleaning products with the groceries.

For a car, how is the main purpose for private/domestic use? Wouldn't the business % for car expenses be the business % as per the logbook? At no point did I say my car is predominantly used for private use (and that definitely won't be the case anyway), so what makes you think the business % is so small or insignificant?

The fact that my spouse could do some personal shopping at the same time I think is largely irrelevant. If, for example, I hired someone on Airtasker instead, it wouldn't make any difference to me whether that person does some personal shopping at the same time while they're at the shops doing my shopping (as long as I get my supplies by the agreed time). I would still pay the same amount for my shopping to be done and delivered to me which I would claim as a deduction in full. Why would it be any different if I paid my spouse instead? Of course, my spouse wouldn't be able to claim the cost of any private shopping. My spouse's travel expense to get to the shops and back is probably the only complicated part as the travel has a dual purpose, but the amount would be negligible so we wouldn't bother including it in the logbook (if it occurs during the logbook period).

But if this really is a problem, my spouse can do separate shopping trips for business and private purposes to keep things simple and clear for the ATO (albeit inefficient).

Cleaning products, sunscreen and stationary are infrequent and generally one-off. Not sure how much you plan on claiming but it cannot be considered to be a large part of the "daily activity". Since one can purchase that in say - woolworths or coles in a matter of minutes - how can you justify anything more than a pittance to be reasonably attributed to it?

On the receipts and entering expenses, CSV and other extracts are typically available for download and one cannot imagine that many expenses which may required additional record keeping. What is the quantum here? 1 hour per week? 2 hours per week?

As I mentioned several times, the pricing model would be at market rates and commensurate for the work she does.

So yes, shopping for supplies for my Uber Eats business would be infrequent and maybe it may only need to be done a couple of times a year. If, for example, my spouse charges $20-$30 for her labour (under whatever the final pricing model ends up being), this would come to a total expense of about $40-$60 + cost of goods for a full year. As you point out, this is not a lot at all. But I have said several times that income splitting is not my purpose.

Note that the time required to shop for supplies is more than a matter of minutes as it should include the time to travel to the shops and back. This would be similar to finding someone to do the shopping for me on Airtasker, for example.

Yes, the office administration services would most likely be the equivalent of about 1-2hrs per week. This would probably involve scanning and organising a few fuel receipts per week, entering fuel and other expenses into a spreadsheet (note that you cannot just simply download a CSV containing all fuel expenses), downloading weekly statements from Uber and updating a spreadsheet to enable me to track my earnings against targets, and downloading monthly phone and internet bills. If, for example, my spouse charges $30/hr (or a similar equivalent to this under a different pricing model), this would come to a total expense of about $1.5k to $3k for a full year.

The nature of the services and the fact that you are planning an hourly rate leans more towards employee than contractor since you are paying for time rather than a service rendered. Note that the ATO's decision tool gives an indicator but is not an absolute indication as it'll end up relying on the facts and what evidence you can produce where there is a dispute.

On the back office and contributing to your business point - this only reinforces the employee position.

As noted above, the nature of the services are more like that of an employee.

All in all - it does not sound like a reasonable approach. Can you do it - yes but proceed at your own risk (you are free to make your own decisions) - I would say you are getting yourself into more trouble than what its worth. If I was looking at this from the other side of the fence, I would definately throw the book at you.

So is the only issue now whether my spouse should be treated as a contractor or employee?

The pricing model I've indicated is just one potential model (as I mentioned in my initial post). This is something my spouse still needs to figure out and bed down. Even if she decides on hourly rates, it may dependent on volume of work - i.e. the more work a client has for her, the lower the hourly rate.

Note that the ATO's decision tool says:

Our commitment to you
We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

So, assuming I've entered accurate information into the calculator, if it turns out the calculator gave me incorrect information, I expect there shouldn't be any penalties for me. If I can't rely on the ATO's decision tool to make business decisions, what's the point?

Re: Tax deductions when getting paid to advertise on car

TaxNewb — Wed, 12 Feb 2020 14:46:07 GMT

Why is it that if I take other modes of transport, I can apportion each individual trip between work/business and private, but if I drive my own car each individual trip has to either be work/business or private?

For example, if I travel by plane from Melbourne to Sydney and back for a 4-day work conference and 6-day holiday, I can apportion the cost of each of my plane trips to work (40%) and private (60%). If, instead of planes, I travelled by train, taxi, uber, etc, presumably the same would also apply. Why can't I do the same when I drive my own car?

As another example, if I rent out a room in my main residence I can apportion the business vs private use of my house on a floor-area basis, even though renting out a room would be incidental to a similar extent that advertising on a car would be while the car is used for normal private use as I would continue to use my house for normal private purposes also. Would I be able to apply a similar method and apportion business vs private use based on the % of the visible external surface area of the car body covered by advertisements?

Re: Estimating fuel and oil costs using odometer readings

TaxNewb — Wed, 12 Feb 2020 14:29:36 GMT

The page we both referenced mentions:

The records you need to keep are:

an electronic or pre-printed logbook (available from stationery suppliers)
evidence of your actual fuel and oil costs, or odometer readings on which you estimate your fuel and oil use
evidence of all your other car expenses.

If, as you say, I need to keep all the receipts for the actual expenses incurred, what is the point of the part in bold above?

Re: Estimating fuel and oil costs using odometer readings

KylieS — Wed, 12 Feb 2020 07:04:56 GMT

Hi ,

You are able to use this method to calculate the percentage of business use. You would need to keep records and all the receipts for the actual expenses incurred. Ensure that you complete the logbook correctly.

The myDeductions tool might be helpful.

KylieS

Re: myGovID

VB2 — Wed, 12 Feb 2020 07:03:08 GMT

Thanks Chris R

I must admit that I am feeling angry. My house is full of technology which works very well. And yet I cannot action basic Government requirements. If I was not able to put in my BAS I would be fined. I even tried to find paper downloads to do my BAS by hand but to no avail.

Most people, in business, use powerful desktop machines to do the hard work and leave the iPads etc for run around stuff. Why has the Government decided to go down this track?

I guess I am going to have to bite the bullet and buy a brand new iPad - just to do a 1 minute BAS submission. And I cannot claim it as its business deduction as use will be for 1 minute every 3 months.

Also, as far as SMS goes, we are out of cellular range here. We are lucky to get 1 bar and that is if we climb a tree.

Re: myGovID

ChrisR — Wed, 12 Feb 2020 06:43:21 GMT

Thanks for your reply.

You need a compatible smart device so that myGovID can use the device’s security and identification features. You won't be able to use desktop computer or notebook to run myGovID.

If you are unable to run the myGovID app using your iPod mini, you will need to find an alternative compatible smart device to use.

Once you’ve logged in, you can continue to use the online service from any browser or device that’s supported by that online service, e.g. your MacBook or iMac.

Hope this helps.

Thanks,

ChrisR

Re: From when can I claim

KylieS — Wed, 12 Feb 2020 04:11:28 GMT

Hi ,

They form part of the capital of your business rather than start up costs.

Feel free to check with our early engagment area with more specifics.

KyliS

Re: Lease a car for charter purpose

ChrisR — Wed, 12 Feb 2020 02:28:13 GMT

Thanks for your question.

is correct. While expenses you incur when providing ride-sourcing services are deductible, generally they will no longer be deductible when you have stopped providing that service.

Where the motor vehicle has been used for both business and private purposes, you must apportion the motor vehicle expenses according to those uses. This is because you can only claim a deduction for the expenses related to the business use of the motor vehicle.

We have another thread in our Community about ride-sourcing and motor vehicle lease costs that you might want to check out. You can access it here: CAR LEASING/RENTAL COSTS

You can also have a look at the income and deductions for ride-sourcing page on our website for more information about how to work out what you can and can't claim.

Hope this helps.

Thanks,

ChrisR

Re: Airtasker cheats

KylieS — Wed, 12 Feb 2020 02:13:05 GMT

Hi ,

Very frustrating for you.

I am not sure if this is applicable but we do have a Tip-off form that my be useful. There is also some interesting information on our website about Dealing with those that cheat the system.

KylieS

about massage job's employment condition

yumi0727 — Tue, 11 Feb 2020 14:11:09 GMT

Hi, I am Remedial massage therapist, and working in massage shop for a few years.

I have a ABN, and I give Tax invoice to the shop owner every 2 weeks and he pays me to my bank.

Pay is paid for 50% of massage I did, so it is commision style.

so, my question is .. What is my employment condition..? Is this still self employed..?because I am working at only the shop and do reception work, cleaning..etc in addition with massage job. and I get paid only for 50% of massage I did. so.. When it is quiet day, my pay is only $40 sometimes even being there for all day.. but I am doing reception jobs on top of massage job.

and one more question is..about superannuation.

Previous owner sold business and new owner suddenly added to write " superannuation included" on my tax invoice statement.. but It has nothing changed to my payment before and after he writes it. so I am very confused..

It would be great if you give me any suggestion.

thank you.

New Small Business Claims

BigAl — Tue, 11 Feb 2020 11:00:28 GMT

I'm starting my own small business as a sole trader, I also work full time for another organisation currently. Ive got my abn, registered business name and ip address, I have many more expenses before I can/will actually start earning money such as insurance, web design & hosting, software, laptop, phone, office equipment, PO Box, business cards, auditing for registration.
I will work from home, but don't really anticipate earning anything from the business this financial year.
Can I claim my expenses against my existing income from the organisation I work for? or Can I claim my expenses next financial year even though they have been incurred this year?
If I do earn some money from the business this year do I have to make all my claims even if I've not earned enough to claim them all back or could I still wait until the following year?

Re: Tax deductions when getting paid to advertise on car

ChrisR — Tue, 11 Feb 2020 05:29:32 GMT

Thanks for your question.

You may want to have a look at the car expenses page on our website.

If the vehicle was being driven specifically for the purposes of advertising, an argument could be made that the motor vehicle expenses are deductible. Where the vehicle is being used for normal private purposes, the advertising would be incidental to that.

The fact is that if you were simply going about your normal business (e.g. driving to work, going to the shops), the motor vehicle expenses would have been incurred regardless of whether you had advertising on your vehicle or not.

If you would like us to take a closer look at your situation, you can request an early engagement discussion. You can find out more about that by referring to the early engagement for advice page.

Hope this helps.

Thanks,

ChrisR

Re: Requesting a notice of assessment when you are overseas

KylieS — Mon, 10 Feb 2020 21:06:34 GMT

Hi ,

If you used a tax agent in the past they may be able to assit you.

Due to the personal information that we require you do need to call.

KylieS

Re: From when can I claim

Bigfella — Mon, 10 Feb 2020 13:30:44 GMT

I had intended to setup a business this financial year, but didn't realise it was going to be as soon as I did. I suppose I did buy it as a long-term thing with the end goal of setting up a business and using those assets.

They weren't bought as personal assets as such, like my older photography gear; more like being ready to go when I did get the business setup, if that makes sense.

Re: From when can I claim

wonka5 — Mon, 10 Feb 2020 13:02:13 GMT

What was your intention when you bought the assets? Was it to use in your business? Or was it a personal asset you now use for your business? Figuring out the personal v business use can help you determine if it is a deduction and the % you can claim.

Re: Requesting a notice of assessment when you are overseas

harry2020 — Mon, 10 Feb 2020 07:07:15 GMT

Thanks for your reply.

Do you have any other way to contact besides calling?

I can't call overseas currently.

Re: Requesting a notice of assessment when you are overseas

KylieS — Mon, 10 Feb 2020 06:41:44 GMT

Hi ,

The only way you would be able to access it would be to contact us.

KylieS

Re: myGovID

VB2 — Mon, 10 Feb 2020 05:58:42 GMT

Thanks Julie

Your link sent me straight there.

However, my iPad mini running 10.3.3 appears too old to run the app. Message return: "Incompatible with this device".

What is my next step? And why a smart device? I would have rather worked from my desktop iMac.

Thanks

Requesting a notice of assessment when you are overseas

harry2020 — Mon, 10 Feb 2020 05:57:13 GMT

Hello,

I am trying to link my ato account to mygov, and I'm at the step where I must show a notice of assessment.

I'm overseas and I can't call internationally.

How can I request a notice of assessment?

Thanks.

Re: Hiring a spouse as an independent contractor

TaxedoMask — Mon, 10 Feb 2020 00:53:32 GMT

If you are driving an Uber/other ride sharing services - then you need to register for GST - see here.

"Ride-sourcing is taxi travel for GST purposes. The standard GST registration rule for GST turnover of $75,000 or more does not apply when it comes to ride-sourcing – you have to register for GST regardless of how much you earn." - emphasis mine, see here.

The nature of the services and the fact that you are planning an hourly rate leans more towards employee than contractor since you are paying for time rather than a service rendered. Note that the ATO's decision tool gives an indicator but is not an absolute indication as it'll end up relying on the facts and what evidence you can produce where there is a dispute.

On the back office and contributing to your business point - this only reinforces the employee position.

Do you mean my spouse's busines related income (i.e. my expenses) are incidental? How would this be incidental? There would be regular office administration work for my spouse (e.g. processing regular fuel receipts and updating spreadsheets).

This refers to the expenditure you want to claim. Eg, for a car - the main purpose was for private/domestic and any business % is so small or insignificant (relative to the rest) that it is "incidental" - picking up cleaning products with the groceries. How many receipts do you intend on processing (since you are earning under 75k?).

If my spouse removes the two services that are partially private/domestic (i.e. getting the car serviced and cleaning the car) and just provides the following 100% business only services:

Scanning and organising receipts, entering expenses into spreadsheets, etc (hourly rate)
Purchasing supplies as required, such as cleaning products, sunscreen and stationary (hourly rate + cost of goods)

would this be ok?

As noted above, the nature of the services are more like that of an employee. Cleaning products, sunscreen and stationary are infrequent and generally one-off. Not sure how much you plan on claiming but it cannot be considered to be a large part of the "daily activity". Since one can purchase that in say - woolworths or coles in a matter of minutes - how can you justify anything more than a pittance to be reasonably attributed to it?

On the receipts and entering expenses, CSV and other extracts are typically available for download and one cannot imagine that many expenses which may required additional record keeping. What is the quantum here? 1 hour per week? 2 hours per week?

All in all - it does not sound like a reasonable approach. Can you do it - yes but proceed at your own risk (you are free to make your own decisions) - I would say you are getting yourself into more trouble than what its worth. If I was looking at this from the other side of the fence, I would definately throw the book at you.

Re: myGovID

KylieS — Mon, 10 Feb 2020 01:31:39 GMT

Hi @VB2 ,

Check out the information on How to get set up.

Also check out the Help questions, myGovID is compatible with iOS or later Apple devices.

KylieS

Estimating fuel and oil costs using odometer readings

TaxNewb — Mon, 10 Feb 2020 07:15:37 GMT

This page on the ATO website indicates that fuel and oil expenses can be estimated based on odometer readings. If I were to calculate my estimated fuel and oil expenses using this method, do I need actual odometer readings for all business-related travel during the entire year (effectively meaning keeping a logbook for the whole year) or can I estimate the total distance travelled for business during the year based on the 12 week logbook as follows:

Calculate the business use percentage of the car using the 12 week logbook as per the link above.
Calculate the total distance travelled during the year using the odometer readings at the start and end of the year as recorded in the logbook (or by using the odometer readings when the car started and/or stoppped being used for business if it wasn't used for business for the full year).
Calculate the total distance travelled for business during the year by multiplying the total distance travelled during the year (calculated in Step 2) with the business use percentage (calculated in Step 1).

Given that the 12 week logbook period should be representative of travel throughout the year, this seems very reasonable to me. Is this ok?

After this, the total fuel cost would be estimated as follows (and similarly for oil):

[Total distance travelled for business during the year (km) (calculated in Step 3)] x [Estimated fuel consumption of car (L/km)] x [Average cost of fuel ($/L)]

Re: Hiring a spouse as an independent contractor

TaxNewb — Sun, 09 Feb 2020 03:17:51 GMT

wrote:
For starters, you need to consider SG on the payments (event though its a contractor) due to the nature of the services rendered - see here.

Already considered. The result of the ATO's Employee/contractor decision tool says I don't need to pay super for my contractor.

Then you need to consider whether GST needs to be factored.

Neither myself nor my spouse would register for GST as our turnovers would be well under $75k (and I wouldn't be transporting people, just food). Presumably this means GST does not need to be considered?

For arm's length - you look at objective data. This is evidence based to justify the shifting of revenue and expenses. This also takes time to collate and justify.

If the invoices my spouse issues to my business itemises the services provided, including details such as the date, time, hours spent (where applicable), etc, would that be sufficient?

Doesn't the fact we're both contributing to the running of my business justify shifting revenue to my spouse? For example, Uber contributes to the running of my business by providing the digital platform, etc so I pay Uber. Similarly, if my spouse contributes to the running of my business by undertaking many of the necessary "back office" business activities, isn't it only natural and fair that I pay my spouse as well? At market rates and commensurate to the actual work she does of course. If it's at market rates and commensurate to the work she does, what's the problem?

Looking at it another way, if my spouse contributes to the running of my business but she isn't paid for it, then effectively I'll get taxed at my tax rate for the work she does. How is that fair?

In my case it doesn't really matter because the difference in our marginal tax rates is only 4.5% so the extra tax would only be a small amount. But if the difference was much bigger I would care. Why should I have to pay tax for the work done by my spouse?

If she charges you say $50 for a car wash - you need to consider whether this is arm's length. Is this comparable to other car wash services.

As I said before: The agreed pricing model would be at market rates and commensurate for the work she does.

Then, question how much of this is "private" and how much of this is for the business.

I see, I had not considered this. Presumably I would just use the business use proportion as per my logbook to calculate the business portion of this expense as it's a car expense. But now I do see a potential problem as the private portion would be domestic...

If she does not operate a car wash business, then how can she charge for it -- in order for you to get a deduction?

She operates a business that provides office admininstration and personal assistant services. Tasks such as shopping for supplies or getting a car washed - either doing it herself at a manual car wash or drive through, or taking it to a professional car wash business depending on what the client wants - are just day-to-day errands, and running day-to-day errands is one of the key duties of personal assistants. This is what she is charging for. But I do now understand the potential problem if there is a private portion to these expenses.

The ATO can also argue that this is a contrived arrangement or a domestic arrangement

After you pointed out that there may be a private portion to the car wash service (which in my case there would be as my car is currently used for both private and business) I can definitely see some complications around this service (and similarly getting the car serviced) as the private portion of these services would be domestic.

I've also realised that there may be another potential issue with these services. As a contractor, my spouse would be free to pay someone else to do these tasks for her but there may be implications related to car insurance (and maybe other things) if someone else were to drive the car, which may effectively prevent her from being able to pay someone else to do it for her.

and any business related income is incidental.

If my spouse removes the two services that are partially private/domestic (i.e. getting the car serviced and cleaning the car) and just provides the following 100% business only services:

Scanning and organising receipts, entering expenses into spreadsheets, etc (hourly rate)
Purchasing supplies as required, such as cleaning products, sunscreen and stationary (hourly rate + cost of goods)

would this be ok?

myGovID

VB2 — Sun, 09 Feb 2020 02:52:30 GMT

I am told that BAS is to be reported via myGovID as of this quarter. All instructions say to download it from the APP store. I use a MacBook running 10.10.5, or my iMac running 10.13.6, or at worse, my old iPad running 10.3.3.

Where is it? And if it isn't there, where can I get it?

Thanks, in advance

Victor Braun

Re: Lease a car for charter purpose

macfanboy — Sat, 08 Feb 2020 03:52:25 GMT

No, because you are no longer not using it for an income-earning activity.

From when can I claim

Bigfella — Fri, 07 Feb 2020 15:08:04 GMT

If I've setup a small business later in the year, but have assets for that business which were purchased before the business was a legal entity, can they be claimed as part of that year's tax?

For example let's say I bought a camera and tripod in August, but only setup my photography business in October. They were purchased within the same financial year as the business entity was formed, but BEFORE the business was running.

Lease a car for charter purpose

Vib — Fri, 07 Feb 2020 08:50:34 GMT

Hi there,

I hired/leased a car at $500/week to be driven on Uber/charter purposes.

in the middle of the year, I got a permanent job and I stopped driving the car,

but I had an agreement/contract for one complete year, and i was liable to pay the lease until the contract expire even though i did not use the vehicle on Uber. Can i claim this in my tax return?

Re: Hiring a spouse as an independent contractor

TaxedoMask — Fri, 07 Feb 2020 04:45:10 GMT

For starters, you need to consider SG on the payments (event though its a contractor) due to the nature of the services rendered - see here. Then you need to consider whether GST needs to be factored. This is all compliance work with penalities if you get it wrong - not to mention the time it may consume.

For arm's length - you look at objective data. This is evidence based to justify the shifting of revenue and expenses. This also takes time to collate and justify.

If she charges you say $50 for a car wash - you need to consider whether this is arm's length. Is this comparable to other car wash services. Then, question how much of this is "private" and how much of this is for the business. If she does not operate a car wash business, then how can she charge for it -- in order for you to get a deduction?

The ATO can also argue that this is a contrived arrangement or a domestic arrangement and any business related income is incidental.

By and large, this sounds and feels like more trouble than what it's worth.

If you truly want to go down this path, you probably want some actual (read: professional) advice to solidify you position.

Re: Hiring a spouse as an independent contractor

TaxNewb — Fri, 07 Feb 2020 04:15:39 GMT

Thanks . Income splitting is not my purpose. As I mentioned in my post, the purpose is to free up some of my time to generate more revenue and focus on strategic planning activities, and to support the growth of my spouse's newly established business. The difference between our marginal tax rates will probably only be 4.5% so the benefit of income splitting would be small.

I completed the ATO's Employee/contractor decision tool and got the result 'Worker is a contractor'. Presumably this is primarily because my spouse would be free to pay someone else to do the work for her if she so chooses. She would also be free to work whatever hours she wants as long as the services are delivered by agreed dates. For car cleaning, shopping for supplies and/or getting the car serviced, there may be a constraint that the services must be completed outside of times I've scheduled to make Uber Eats deliveries.

Can you provide more information (or a link to an ATO page with the information) on:

The pitfalls of this type of arrangement that needs to be considered
The evidence my spouse and/or I need to keep to adequately substantiate to the ATO the arms length nature of the arrangement
What else I need to do, if anything, in addition to the ATO's Employee/contractor decision tool to determine if this is an independent contract vs employee vs domestic arrangement.

Also, are you able to elaborate on what you mean by the following?

You have additional separation required between private use and business use to consider.

Is this about the car usage? For example, whether to record the business kms against my business or my spouse's business when my spouse drives the car to and from the car wash, shops and the mechanic?

Re: Starting Drop shipping

ChrisR — Fri, 07 Feb 2020 00:54:25 GMT

Thanks for your question.

Starting an online business and obtaining an ABN doesn't prevent you from continuing your employment. Your employer doesn't need to know what your ABN is or that you even have an ABN.

From a tax perspective, you can have as many jobs as you like. You can be an employee for one job and self-employed for another if that is what you want to do.

Once your online business starts to make some money, you may want to look at registering for pay as you go (PAYG) instalments. For more information about that, check out the PAYG instalments page on our website.

Being the only business owner doesn't mean that you have to be a sole trader. There are actually four commonly used business structures in Australia: sole trader, partnership, company and trust. The best one to choose depends on your circumstances and you may want to seek professional advice about which way to go.

We have a great page on our website about starting your own business that you can have a look at. Check out the menu on the left hand side for some really useful information, especially the choosing your business structure link.

We also have some other threads in our Community that you might want to read. This is a good one to start with: Sole Trader

Hope this helps.

Thanks, ChrisR

Re: Hiring a spouse as an independent contractor

TaxedoMask — Thu, 06 Feb 2020 23:22:06 GMT

In theory you can, but there are a bunch of pitfalls to such a strategy. Also since this is your spouse - it is more likely than not that you need additional evidence to show the arms length nature of the agreement. The fact that this is also a spouse puts into doubt the "independent contract" (vs "employee" or even domestic) arrangements.

You have additional separation required between private use and business use to consider.

One can only assume you are trying to income split with your spouse - to which I can only say that there are better methods.

Hiring a spouse as an independent contractor

TaxNewb — Thu, 06 Feb 2020 14:59:29 GMT

Let's say I am a sole trader that delivers food via Uber Eats. My spouse recently became a sole trader that provides office administration and personal assistant type services and currently has one client.

Would I be able to hire my spouse as an independent contractor to provide office administration and personal assistant type services to my Uber Eats business? Services would most likely include some or all of the following (potential pricing model in brackets):

Scanning and organising receipts, entering expenses into spreadsheets, etc (hourly rate)
Cleaning the car (fixed cost, inclusive of non-labour costs)
Purchasing supplies as required, such as cleaning products, sunscreen and stationary (hourly rate + cost of goods)
Getting the car serviced (fixed cost, inclusive of actual servicing costs)

The agreed pricing model would be at market rates and commensurate for the work she does.

Leveraging the expertise and services offered by my spouse's sole trader business would free up some of my time to allow me to make more Uber Eats deliveries and focus on strategic planning activities, such as researching other potential home business ideas.

My spouse and I generally work different hours for our day jobs which means that she can usually wash the car and purchase supplies (when necessary) while I am still at my day job. This means that I would be able to go straight out to make Uber Eats deliveries after I get home from work instead of having to spend time washing my car or shopping for supplies myself (when required), which results in lost potential revenue.

In addition, this arrangement would support my partner's newly established business.

Is this arrangement ok? Is there anything I need to be aware of?

Re: Tax deductions when getting paid to advertise on car

TaxNewb — Thu, 06 Feb 2020 13:52:24 GMT

Thanks . If I were to just drive how I normally drive now for personal use, would all of my driving while I have advertisements on my car be considered business use?

Re: Strengthening my MyGovid

NateH — Thu, 06 Feb 2020 01:50:47 GMT

Hi ,

When achieving the Standard strength (which is the highest) you only need the two Australian identity documents which you have provided. There would be no advantage for you in adding additional documents.

Thanks, NateH

Re: Operating lease

MarkA — Wed, 05 Feb 2020 06:03:47 GMT

Good to see a first post so welcome.

As to your enquiry generally an operating lease is like a rental arrangement. Under the Income Tax Assessment Act 1997 section 8 (1) a deduction is allowable for expenditure that results in the gaining of assessable income. Any Accountant should be able to verify the details of your arrangement. See also Deductions you can claim

Hope this assists

Cheers
MarkA

Re: Merchant Fees

DuncanS — Tue, 04 Feb 2020 08:49:35 GMT

I understand Merchant Fees are deductible.

Create a ledger called Bank Merchant Fees.

Look at the Tax Invoice/Invoice from the Merchant to determine the GST.

Good Luck with your business.

Duncan

Re: Airtasker cheats

JakerCini — Tue, 04 Feb 2020 08:15:00 GMT

Having an abn does not mean anything as airtasker do not report to ato each abn and each amount earned. They are unable to cross reference

Re: Airtasker cheats

JakerCini — Tue, 04 Feb 2020 08:13:42 GMT

Irs easy they just dont declare it..i work in cleaning and struggle to get business becuase of the thousands of cash cheats. The min award rate i pay my staff os $26.90 plus super, insurance fees etc. I am unable to do a job for anything under $37/hr yet i constantly have leads tell me they are quoted $20, $15 & even $10 per hour. You cannot tell.me they are legal, declare income, etc.

I also know of abn users using other peoples abns. Indian students use abn to work more hours than they are allowed to.

I have proof of all this.
So again tell me exactly how are the ato 100% sure all income ia declared?

Re: Airtasker cheats

macfanboy — Tue, 04 Feb 2020 08:01:30 GMT

If you are an Airtasker worker, you are in business as a self-employed person. You aren’t employed by Airtasker. That means you must have an ABN

The ATO has been keeping a close eye on people earning income from shared economy services like Airtasker. It’s essential that they fully and accurately disclose all their Airtasker income (and expenses). If they don’t, they could find themselves being audited by the ATO. They will charge interest and penalties on any unpaid or underpaid tax.

So i.m not sure how they are going through Airtasker and not declaring their ABN, Tax file number, etc.

Merchant Fees

evisca — Tue, 04 Feb 2020 05:06:08 GMT

Hi all,

I have just started a small business as a sole trader, and I added myself as an additional user of a eftpos terminal. I was wondering if the Merchant fees are tax deductible. I looked on the ATO website but nothing specific was mentioned.

Thank you in advance for the help!

Airtasker cheats

JakerCini — Tue, 04 Feb 2020 04:17:22 GMT

I would like to know what the ato is doing about all the cash transactions on airtasker.
I have a legit cleaning biz and am.slowly closing down because i am unable to compete with cheats.
Go to airtasker and there are 30+ offers for a vacate clean for $200 amd under.
This is impossible if paying tax, super, fees. So it stands to reason there is illegal activity.
Why cant airtasker check if people are submitting tax i mean you know everything about me so why not get a legislation going that says registered sellers need to prove their income?

Re: GST charges on government invoices i.e. land tax, council rates etc

DuncanS — Mon, 03 Feb 2020 06:50:41 GMT

Nate,

Thanks for your reply.

To illustrate by figures -

Land Tax $10,000 Council Rates $5,000 Water Rates $2000 per annum

These are oncharged by the Real Estate Agency as part of the monthly Rental (which has GST).

I understand the 3 expenses above will be on charged including GST ie Land Tax $10,000 plus GST $1000 = $11,000 or Land Tax $11,000 including GST.

I will approach the major franchise group indicating that they are not charging GST on tenant reimbursement as required.

It may be that the ATO should approach all major real estate franchise groups to ensure the GST law is being applied correctly. One issue being that a Tax Agent/BAS Agent/Bookkeeper may not look at the monthly Rental Invoice and agree the amount of GST on the Rental Invoice to that calculated by the accounting software ie GST would be overclaimed.

Once again , thanks for your reply.

Duncan

Re: Tax deductions when getting paid to advertise on car

TaxedoMask — Mon, 03 Feb 2020 05:13:33 GMT

For how you can deduct the motor vehicle costs - see here.

For your "dual use" - I would argue that the dominant purpose is to generate revenue, thus expenses to the extent it relates to earning the income is deductible. This is not withstanding the fact that you are simultaneously using it for other purposes (I would regard these as "incidental" to you generating income). May require apportionment depending on the terms of the agreement you have with the ad agency and your private use.

Re: GST charges on government invoices i.e. land tax, council rates etc

NateH — Mon, 03 Feb 2020 04:39:29 GMT

Hi and ,

This one is explained in GSTD 2000/10

Payment by the landlord of local council rates, land tax or other charges may not be subject to GST because of the operation of Division 81 of the GST Act.

If the tenant is required under the terms of the lease to reimburse the landlord's payment of an Australian tax or an Australian fee or charge, Division 81 of the GST Act does not apply to the tenant's reimbursement as this is not the payment of an Australian tax or an Australian fee or charge by the tenant.

The water and council rates etc. are the landlord’s liabilities and when on-charged to the tenant they lose their character and form part of the consideration for the supply of the premises. If the supply of the premises is a taxable supply then GST is payable on the consideration paid by the tenant including the reimbursement amounts.

Thanks, NateH

Re: Strengthening my MyGovid

bill_sloman — Mon, 03 Feb 2020 04:23:13 GMT

Hi Nate - this isn't the impression I got when I was setting up my MyGodid.

Passport and drivers license was an adequate identification, but throwing in a birth certificate would have made it better.

I remember this because - at that time - I knew that I had an extract from the birth register in which my birth had been recorded, but I hadn't been able to find it then. Now that I have finally found it (and scanned it) I'd like get some benefit from the time I spent doing that.

Bill Sloman