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intuitive(I'm new)I'm new
7 Feb 2024

Hi there,


I intend to start offering mediumship readings online (via Zoom) through my mentor's business website. My mentor is located in New Zealand which is where most of their/my clients will be located.


Payments for my services are going to be made through my mentor's PayPal account, where they will deduct a percentage for themself which will also cover their GST obligations (in NZ). From there, I will invoice my mentor at the end of each month and my percentage will be paid into my PayPal account (where I assume it will automatically be converted from NZD to AUD).


So my questions are:


1. Do I need an ABN?


2. Would I report my income as PSI?


2. Would I only report the % of income I receive?


3. Would the income I receive be considered as foreign income if I receive it as AUD?


4. Would I need to pay tax in NZ on the income I receive, considering we have a tax treaty with them?


I've had a look at the information on your website about PSI and foreign income but I'm still unsure.

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1 replies
278 views
1 replies

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Most helpful reply

Deb_ATO(Community Support)Community Support
13 Feb 2024

Hi @intuitive

 

1. An ABN isn't compulsory but it does depend what type of business structure you'll be using. Do you know if you're Australian resident for taxation purposes or not? Check out our further info on Business Structures and Work out your tax residency.

 

2. If you’re carrying on a business and income is generated from the business structure of the entity rather than from an individual’s personal service, then the income is not considered Personal Services Income.

 

3. If the income isn’t paid directly from Australia, then it’ll be foreign income.

 

4. If you’re an Australian Resident for taxation purposes all your foreign income must be declared and any foreign tax paid and must be converted to Australian dollars. If you're not a resident, then you don't declare any foreign sourced income.


Check out reporting your worldwide income.

 

All replies

Most helpful reply

Deb_ATO(Community Support)Community Support
13 Feb 2024

Hi @intuitive

 

1. An ABN isn't compulsory but it does depend what type of business structure you'll be using. Do you know if you're Australian resident for taxation purposes or not? Check out our further info on Business Structures and Work out your tax residency.

 

2. If you’re carrying on a business and income is generated from the business structure of the entity rather than from an individual’s personal service, then the income is not considered Personal Services Income.

 

3. If the income isn’t paid directly from Australia, then it’ll be foreign income.

 

4. If you’re an Australian Resident for taxation purposes all your foreign income must be declared and any foreign tax paid and must be converted to Australian dollars. If you're not a resident, then you don't declare any foreign sourced income.


Check out reporting your worldwide income.

 

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