tax free income and CCR

[2CheekyMonkeys]

ok, so being a tupperware demonstrator means i get tax free money and i dont need to declare this to centrelink as any income made does not affect my benefits. (so i have been told, please correct me if i am wrong)

but does it mean that i can get child care rebate quarterly because techincally i AM working?

[Muppity]

how do you figure that income you make doesn't affect your benefits?

Income is income as far as the tax department is concerned as far as I know.

Maybe what they mean is that you won't earn over $5200 (or whatever it is now) per annum which is the amount that you can earn before you pax any tax at all.

I would be ringing the tax office and centrelink and asking the questions so that you don't get stung later on.

[2CheekyMonkeys]

its not something i figure its just what i have been told by people already in tupperware. yeah.. they said once you sell $75 000 worth per annum you start paying tax. i'm not aiming to make it a full on business just a bit on the side. but yeah i have wondered how it can be tax free and not affect centerlink. thought i would get some info from the lovely ladies on here before i go ringing around.

[Arimeh]

I dunno what they are thinking but any income you make has to be declared to centrelink, and *might* affect your benefits. You still have to declare the income to the tax office too, but you just don't get taxed on it if its under (is it 6 grand now? I thought it had gone up)

[2CheekyMonkeys]

i was just told it is classed as a hobby or something by a tware friend... hmmm

[Arimeh]

It could well be a hobby if you fall under the threshold, but I'm pretty sure all income needs to be told to centrelink.

[Muppity]

This is from the ATO website...

I'm pretty sure that selling tupperware doesn't falling into the hobby category...

How do I know if I?m in business?

There are a number of factors to consider when determining whether you are running a business or a hobby.

Does your activity have a significant commercial character? It?s important to consider whether your activity is carried on for commercial reasons and in a commercially viable manner.
Is there more than just an intention to engage in business? You need to have made a decision to commence business and have done something about it. If you are still setting up or preparing to go into business, you might not yet have commenced business.
Do you have the purpose of profit as well as the prospect of profit? Do you intend to make a profit or genuinely believe that you will make a profit, even if you are unlikely to do so in the short term?
Is there repetition and regularity to your activity? Businesses usually repeat similar types of activities, although one-off transactions can constitute a business in some cases.
Is your business similar to other businesses in your industry? Is the way you operate consistent with industry norms or other businesses in your industry?
What is the size, scale or permanency of your activity? Is the size or scale of your activity consistent with other businesses in your industry? Is it sufficient to allow you to make a sustainable profit?
Is your activity planned, organised and carried on in a business-like manner? This can be indicated by business records and books of account, a separate business bank account, business premises, licences or qualifications, and a registered business name.

[briggsy's girl]

party plan doesnt count as income for ftb purposes unless ato thresholds are hit. so no it doesnt count. it DOES have to be declared for income support payments

ccr you have to be working at least 15 hors per week every week. make sure you keep gooooooooood records

ETA - i have sold four diff party plan items at times (love my freebies!) and never had to declare

[2CheekyMonkeys]

thanls BG that is a load off my mind. it was one of the main reasons i decided to go ahead and join up! i wont be doing 15 hours so no ccr for me.

why is it tha party plans dont count for ftb?

[briggsy's girl]

ftb only takes into account income as deemed by ATO - there is a requirement to declare tax free pensions and benefits (like disability or vet affairs pensions) but any taxable income is what is declared by ATO to be income. when it comes to party plan, because you are buying in stock to show, sell off obsolete stuff, have travel, it usually comes to a nil or negative income until you have a certain turnover so is classified as a hobby not a source of employment

with the 15 hours, take into account any time you're contacting customers before you go to parties, processing orders etc - you might hit that point.

i do a partyplan at the moment and they actually have a thing about registering for GST on the site - it goes through all the tax implications - not sure if tupperware has something like that. i know when i first did partyplan 10 odd years ago (i feel so OLD now) and went to the accountant for tax, he asked if i had turnover of more than 25k i think (so stock in stock out sorta thing) and when i said no, he said it's a hobby then so don't worry.