Any Accountants or Tax Experts Out There?

Blues_Brat

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Thread starter #1
I'm pretty sure there are a couple of accountants on here, so I need your help if I may.

How much can you earn on the side before it must be declared?

Do I need an ABN to invoice a company for some work I've done?
 

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#2
On the side, you can earn $150,000 before you declare it. And you dont need a ABN either for that work you done.

Glad to havehelped sweetie.

Hugs & kisses
xoxoxoxoxoxoxxoxoxoxoxoxo
 
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topdon

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#7
Originally posted by mantis
JLC is an accountant, if you are willing to take advice from a Pies supporter.:eek:
No don't do it!! :eek: He'll con you out of your life savings, leaving you lying in a gutter somewhere in Brunswick St.!! :D
 

Balip

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Re the ABN: I would recomend it because if you dont they should withold 48.5c in the dollar. (getting an ABN is easy, I think it can be done over the net and dosent mean you need to register for GST)

As for earning income on the "Side" im not sure what you mean. You can earn up to $5400 from any source, after this any income you earn is taxed.
 

coxon

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#9
Originally posted by Balip
Re the ABN: I would recomend it because if you dont they should withold 48.5c in the dollar. (getting an ABN is easy, I think it can be done over the net and dosent mean you need to register for GST)

As for earning income on the "Side" im not sure what you mean. You can earn up to $5400 from any source, after this any income you earn is taxed.
yeah, was about to say that...

if you do not supply an ABN, they (those companies who u are dealing with who are ABN registered) have a right to withhold 48.5% of the payment they made to you.

i think they they call it no ABN withholding ... you can get it back when you lodge your tax return..
 

Sly77

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#10
One of the Hawks has arrived - come into my office and take a seat Blues_Brat ;)

Get yourself an ABN - go to www.ato.gov.au - per other posts

If your annual turnover is over $50K from this business - you must register for GST - otherwise you can choose whether or not too. The advantages are you can claim the GST you've paid on anything business related.

As for earning income on "the side" - technically, unless it's a hobby, irregular and infrequent transactions - you need to declare the income.

Cant really tell you much based on the info provided - would need to know a little more first.
 

Blues_Brat

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Thanks for your help peoples! :)

Sly, here's the details of it:

I have been working on a web site for an SANFL club for the past 5 years, I did this as voluntary work, however this year they said they would pay me for doing it. The amount is $2000 and this will be a one off because I am not doing it next year.

Basically they haven't paid me yet and I wanted to send an invoice to them for the amount but wasn't sure if I can do that without an ABN.

I did some accounting studies a few years back but it was all prior to GST, so my income tax legislation books are not much more use than doorstops. :(
 

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Sly77

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#12
Ok short answer.

You are getting paid for a whole years work - albiet not much - but this shows a consistency - therefore not a hobby, so you can't really ignore it.

So log onto the ato website www.ato.gov.au - fill out an application for an ABN (do NOT register for GST), takes around 2 weeks I think to issue. Chuck the ABN on an invoice - send it to them, wait for your money - then declare the income on your tax return - SIMPLE :D

You can just keep your ABN - or cancel it if you really want afterwards. Thats the legal way to deal with it, and the best way to keep the auditors happy JUST IN CASE ;)

PM me if you have any more queries :p
 

Stucey

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#14
Are they paying you cash?? If so, I wouldn't worry about it. It costs a few hundered dollars to register for an A.B.N anyway. (I think)

I don't know what profession you are in or stuff like but if it a one off thing and you don't run your own business, then I wouldn't get an A.B.N.
 

Stucey

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#15
Nah, you will have to claim it as taxable income, but if they withhold any tax from you, it wont matter because you can still claim it at the end of the year. You will just get a bigger tax return instead of getting all your money now and spending it!!
 

Sly77

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#16
Stucey - mate - read the facts.

Blues hasnt got the money yet and wants to send an invoice to request it. If the invoice does not have an ABN on it - they may choice to withhold 48.5% of that. Which means Blues will only receive close to half of the original amount. The only way of getting that back (minus Blues's applicable rate of tax on that - which is most likely less than 48.5%) is to give them an ABN and declare the income. The only outcome better would be if they happend to NOT take out 48.5% withholding for not supplying an ABN, and blues could forget about it - but its unlikely nowadays that they wouldnt notice the absence of an ABN.

And it does NOT cost to register for an ABN
 

Blues_Brat

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Thanks again. All done!

I guess having an ABN on an invoice would make it more proffesional. (Apart from the withholding tax issue) they can't fob me off as easily if they want to try to get out of it!

Stucey: you probably are thinking of a business name registration, last time I registered one in SA it cost around the $100 mark from memory.
 
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