tax man

[wheelinround]

Not grumblin but after 5 years on disability I have now got to go back and do tax for past 5 years and do tax for from now on also.
Apparenlty its New thing
After being advised by ATO, Centrelink & accountant we wouldn't need to do anything.

No worries haven't made a $$ that I haven't spent more on in materials or time for things I have made for people whom paid me rather than let me do it for FREE.

But you never know might have to sell off everything.

Had a good long talk with the fellow though regarding the difference between hobby/craft and business if/should my health improve enough to produce woodwork worthy of markets e-bay etc.

Regardless a reciept of some sort should always be issued and persons details who is purchasing it. E-bay has become a hot spot for centrelink and ATO watching for Aussie sellers who are constantly selling either auctions or pure sale.

This for a number of reasons.
1 it covers you and keeps account of what you have sold dates etc
2 should you increase your output all sales during that year are taken into account of course this includes GST payments etc. The you can also claim benifits tools materials tuition.

Of course registering for an ABN is paramount to much at all.

Oh well the next week or so will be spent ringing Gov departments etc.

[les88]

Why do the ATO expect you to have records for the time you were on disability pension when it wasn't taxable?
les

[Sebastiaan56]

Mate, get a good accountant. First consultation should be free.

[munruben]

It's a pity the tax office hasn't got something better to do than hound little guys like us.
Why don't they concentrate their efforts into tracking down some of the real tax dodgers who get away with earning millions and paying hardly any tax. Give us a break!

[johnc]

The ATO is not interested in getting people to lodge tax returns when they do not have assessable income, nor are they the slightest bit interested in hobbies. Mind you if the hobby is profitable they do class that as a business which is a different matter. If you have not lodged a return they do want to know why just in case that cash crop you grew in the back yard left you a millionaire and you forgot to give Peter his cut.

It is a simple matter of advising that no return was necessary and why for any year you have not lodged a return. Their records will show that you have received a disability support pension and you can advise them on the profitability of the hobby. If the query is about an unused ABN then they will want to cancel it, if they are looking for big profits from your sideline then someone has told them that you are making a fortune and bludging on the system.

This is not a system out to bully they just want the facts so they can close the matter and move on to the next file.

John.