Can you help with some questions I have?

partyplans replied:

first... promise you don't work as an auditor for the Tax office

Just kidding!

Zammy replied:

Heidi: Check with the ATO, but as far as I'm aware it's operated as a business and until you do a $50, 000 you won't even be taxed for the income.
I don't work full time, so I can't help. The consultant you're thinking of signing up with should be able to find out any answers you need!

heidinbrett replied:

i can assure you I definatly dont work for the ATO!! sorry if it sounded that way!  i am just so new to all of this that i had absolutly no idea how to find out about it. Thanks Zammy - i will definatly talk to an accountant and find out.  i have been told by a friend that used to have a scrapbooking type party plan business and she also said that if you earn under a certain amount it is classed as a hobby but i will just have to make sure that it is still that way if you work full time.  i just want to do it all correctly.  this site is really great that way as i tried looking on the interent and couldnt find any info to help me.  thanks again.  i will let you know how i go.i have my first training party next weekend and already have 6 bookings for next month so its all go.  just gotta go get an abn and all that stuff now!  very exciting and nerve racking all at the same time!

ExMember148 replied:

Hell yeah, get ready!!! Oh and while you are getting organised, go to the DR and get some valium!!! hahaha, just kidding, party plan is terrific.

MJ78 replied:

hi heidi,

once you actually earn over $6000 with ucw in commissison you do have to claim it and pay tax. they were trying to up the threshold to $10000 this year, but it hasn't happened. an abn is needed when you do earn over the $6000 or if you are like me I needed one straight away because my first few commission statements were averaged out and that told the company that I would earn over $6000 in a year based on those commissions, they kept payg tax from me and the only way I could get it back was to supply them with an abn.  you however don't need to claim gst until you earn over $50000.

i have a question to though - what happens if my expenses are costing more than my actual commissions and if i haven't reached the $6000 mark by the end of the financial year and haven't paid any tax - can i still put in a tax return stating all my expenses and claim back the money i have paid out. does this make sense?

Janine replied:

I was watching "9am" this morning and they had a short section regarding home based business. I have since some across this site http://www.business.gov.au/Business+Entry+Point/ that should be of some use to all of us. Also if you do a search with the following - Business Entry Point in Google you will come up with loads more sites with lots of info on them.

Cheers

Janine

heidinbrett replied:

thank you janine i have been onto the website and found it very informative.  also MJ, thank you for clearing up the abn and gst thing!  looks like im not the only one a bit lost with all this so thats good to know    i also found a section on the ato website that is designed for party plan/direct selling industry which was great too its http://www.ato.gov.au/businesses/content.asp?doc=/content/1791.htm&page=1&H1  this might also be helpful as it was to me

thanks again

heidi 

MJ78 replied:

i just rang the ATO again today to clarify a few things and they said that if you are NOT intending to make a profit then it is just a hobby, but if you ARE intending to, or you do start to make something extra then YES it is a business. Apparently though you can have an ABN without conducting a business you just don't lodge a tax return, the other company needs to know your ABN for their tax purposes. Oh who knows! They told me they are sending me out a booklet, with all the information I could possibly need or want,  so once I get it and read through it I will let you all know. Thank