Party Plan and centrelink??

[Pretty Butterfly]

Do I ned to claim income from party plans?? And how do I do it??

Am I classified as self employed again? (that was a hassle!)

Do I call each fortnight and tell them what I made, and what happens when for the first few months all that profit goes back into getting stock??

confused.....

[Lulu]

You will probably have to do profit and loss statements. The first one will have to be projected.

It doesn't matter what you do with your profits, you just have to report what they are.

ETA - you can run it as a hobby for the ATO if it earns under $5k per year (?), but for clink purposes its income.

[Pretty Butterfly]

Yep, we checked with the ato, its all good there.

The thought of the statements for centrelink again... arrgghhh.....

[Lulu]

I know...it SUCKS but at least you are familiar with the routine I suppose! You will run at a loss for awhile anyway.
It's one of the reasons I am hesitant to go back into biz..I want to get away from Clink forever and it just tangles me back in....feelin ya pain!

[briggsy's girl]

i agree with Lulu - the profit and loss statements suck, but it's best to be completely upfront with them - you're registering as a business and need to be upfront about it. it will all go through a complex assessment officer who will be able to say whether you run at a profit or loss and then it willbe recorded on your file. not fun - but definitely better to do a bit of paperwork than to have them find out months down the track that you've started it and have nasty investigations...

[Pretty Butterfly]

Thanks BG.... I've been PMing Lulu, but would like your input too!!

We got the ABN in Adams name (long story).

According to the ATO guy, they only wanna know about the business if it earns over $50,000, otherwise its a hobby and not GST applicable. And centrelink only want to know if its taxable income, which ATO says it isn't.

But it doesn't sound right.

I know a lot of tupperware and avon ladies that just do there work and dont need to report it, but it still doesn't sound right....