Hello,
I'm a full-time professional working in a process industry. My individual marginal tax is 30%. For the side hustle, I do dropshipping on eBay sourcing products from different platforms. My income from this side hustle for the last financial was some $1,200 (meaning less than $75,000). I have a lot of confusion in declaring this income while filing my individual tax return, GST registration, or any other legal implications. I want to stay compliant with ATO at all times while I'm doing this side hustle. I'm looking for answers to the following questions that I have in my mind.
- Do I have to declare this income in my individual tax return?
- If yes to question 1, in which section?
- I'm guessing I'll be taxed at my marginal tax rate as I'm a sole trader. Is that correct?
- There's an option in my eBay seller profile asking my ABN. I haven't provided my ABN over there yet. Should I provide it? Is there any benefit from ATO side?
- I read the following statement somewhere.
"Even if your turnover is below the threshold, registering voluntarily can allow you to claim GST credits on business expenses, which can improve cash flow."
My income is below the threshold of $75,000. This apparently mean that I do not have to register for GST. But as suggested by the above statement, should I rather register for GST so that I can claim GST amount for the business expenses that I had to do to get by business running?
Looking forward to help so that I can stay compliant to ATO rules.
Thank you.
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