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Hi ATO Community!
I have a question, and I really hope someone can help me with this because I'm a little unsure...
I make video games that people can download and play for free (so no payment is required to play my games) and the community that I am a part of; where I upload my games; has a tool that allows me to give people the option to donate $1.00 or more to support my game/work, (however payment is not required to actually download and play the game)
Alternatively I am looking to create a Paypal money pool for my next project and want to provide the link for people to have the option to donate to support my game there and I am only looking to raise $2-$3000 before closing the pool.
So my question is...Would I need an ABN to be able to legally accept donations from the public through the two methods I mentioned above?
Thank you again, for answering my questions.
I do have another question in regards to freelance work, declaring tax and an ABN.
In the course of making and releasing my FREE games to the public, I have received offers through email to work with other game developers and Youtubers who have discovered my talent for Voice Acting whilst playing my games.
Most of them have asked me to Voice Act in their Non-Commercial Projects for FREE and all of the recordings I do, are done from home.
I happily accepted to work on these projects since Voice Acting is just a hobby.
I currently have my portfolio advertised, stating that I am available to Voice Act on more projects, but I update the post when I'm not available. I also do not actively go looking for Voice Acting Opportunites, as instead I wait for clients to approach me to work on their projects, which means that I do not consistantly receive opportunities to do Voice Acting.
So far, I have only received 1 opportunity, where I was commissioned/paid for Voice Acting in the project.
This was for a Small Commercial Video Game and the developer commissioned me a one-time payment of $30 to my PayPal within their budget, as again, Voice Acting is just a hobby of mine that I mainly do for FREE, so I don't have any specific commission rates.
I accepted the commission because, to be fair, the developer was earning a profit from a game that I Voice Acted in.
So, my question is, since I'm not actively looking for work in Voice Acting as it is mainly just a hobby I do for FREE in my spare time, do I need to declare the one-time commissions I receive through my PayPal come tax time, if I only receive PAID opportunities once in a blue moon?
and do I need/at which stage would I need an ABN in order to continue to receive commissions for my work, if I receive more PAID Voice Acting Opportunities in the future?
Thanks for your reply.
You don't need an ABN although as we mentioned in your other thread, it can make things easier.
If you haven't done so already, you may want to check out the business or company registrations page on our website for more information.
Hope this helps.