Resources...
What's new...
Opportunities...
What about the tax???
Discussions : General discussion : What about the tax???
marina wrote:
Some people never cease to amaze me.
When i mention the business plan to some people and show them the earnings I make and what they can make they say
WHAT ABOUT THE TAX? BUT I WILL HAVE TO PAY TAX THEN WON'T I ?
So they are worried they will have to pay back tax and then do not join.
I cannot understand the logic to that.
if you are getting good money especialy passive income , why would you not want to pay some tax anyway. you are getting for example $1k in bonus for doing nothing. So you take out $300 for tax, you still have $700. ( that is an example)
anyway I say, that is fine with me. Bye Bye.
Any comments on this would be great.
noone replied:
I am not an accountant or anything, but my understanding is that if you earn under a certain amount, I think it's $10k its not taxable income... Centrelink still wants to know but ATO treats it as a hobby. (Do not take this as gospel, this is simply my understanding - correct me if I'm wrong)
I asked my accountant about a similar situation (not pp) a couple of years back, he said to put a percentage (I forget how much) into a separate bank a/c "just in case". That way come tax time I didn't have a huge debt to find the money for, and if my income wasn't quite high enough to pay that much tax I'd have a nice little savings a/c started. I looked at it not as "paying back" tax but as "putting it aside".
I would suggest to anyone who is worried to ask their accountant or tax agent - a quick phone call would be all it takes. And if you're in recruiting it mightn't hurt to have the information at hand in your papers for potential recruits...
marina replied:
of course this is an individual thing. I am not talking about tax limits etc in this post.
WHAT I WAS TRYING TO GET ACROSS IS YOU OFFER PEOPLE A WAY TO FINANCIAL FREEDOM AND ALL THEY ARE CONCERNED IS ABOUT THE TAX.
you offer people a way to financial freedom and passive income and all they can say is.
but i will have to pay tax??? they would rather be poor and not pay tax , then rich and pay tax.
this can and will differ, but is just goes to show that some people just do not get the big picture and are happy to work the 9-5 grind for the next X amount of years because they are scared of paying tax on passive income.
I hope my post makes sense. It is not about tax rates as such and not about how much and when you pay, but people not joining up because they ARE AFRAID TO PAY TAX on passive income
noone replied:
Marina, sorry I misunderstood your original post
I can understand what you're saying about people only being worried about tax - frankly if I (talking generally) was going to earn passive income or a taxable amount from party plan, perhaps the greatest industry in the world I wouldn't mind!!!
I can't wait to hear what other people think about this thread...