Owning own business and c/link

[beansbeans!]

I'm slightly confused (not at all abnormal). Anyway we have our restaurant up and running. So far we haven't taken home a wage for dh, we are paying staff, but at the moment we are living on savings and family assistance from c/link.
How do I explain this to c/link? Also the fact that I do 'work' as well but I am not getting a wage either, how does that, will that affect our payments? I'm finding this to be overwhelming because we both are technically working but neither of us are getting paid. Yes eventually dh will start taking a wage, but I will never get one (well in the foreseeable future anyhow, it's just not possible).
Does any of that make sense? I wanted to ask here before calling them because I know I'm going to get confused and end up stuffing everything up.

[Beautiful Disaster]

We in this same boat I feel your pain

[Miss.September]

We do a lump sum payment at the end of the financial year, once DH's tax return is complete.

This year we moved to fortnightly payments and they based what we are getting on a yearly income estimate. I'm now working on the books for the business, previously I worked without pay and everything went through him. Centrelink keep a certain amount held in case you end up being overpaid and from what I understand, if your estimation is correct, you get a balloon payment at the end of the financial year.

[black_rose]

We have to do it at the end of the year too as our income fluctuates and the only way to be accurate is to wait until our accounts are audited at the end of the financial year but that doesn't help you if you are living off the payments. Any profit you make is classed as income so it gets complicated there are specialist financial advisors you can talk to who know all the centrelink rules who can probably advise you what to do.

[Mummato2]

Are you a sole trader or a company?

[briggsy's girl]

It depends on what payment you are claiming. I'm assuming just family tax benefit, which makes it far easier (parenting payment is far more involved). With ftb, all you need to do is estimate your income. If you're going to be pulling no income then you put in a lower income estimate. If your accountant says there will be a "net investment loss" you also need to list that seperately

If you are claiming child are benefit and wanting to list your work hours to get more CCB hours or claim ccr you just need to let fao know. And make sure you keep record of what you're doing (hours etc) in case you are audited later.

[Beautiful Disaster]

Thanks BG that just saved me one hell of a hard call. Maybe now I can be happy with him going ahead. Sorry to hijack baked beans

[beansbeans!]

Thanks all
It's a company. The parent company (I think that's what it is called) is in both dh and my names. Then the trading company is in my name, I have no idea why that is.
We only claim fta and ftb, the child care rebate doesn't really matter mainly because I only plan on sending dd2 one or two days a week for this year.
Recording my hours of work, I'm kinda over there most if the day doing random jobs, setting up, cleaning, cooking, pretty much anything including some waitressing on the weekends (all of which is totally unpaid, I don't even get tips )
Now I have a feeling that is going to complicate things more :/

And bd, all good good to know we're not alone being confused and the more questions normally helps all

[surprised]

I would be finding out why the trading company is only in your name. Not saying that it shouldn't be, but if something is in your name you are ultimately responsible, so it pays to understand what is going on.

If you are making no money you might be eligible for parenting payment, but you would have to fill in profit and loss statements for them.

[Mummato2]

Exactly what surprised said.

We are a company but didn't branch off like yours does. Centrelink will want to know the profit/loss for the parent company since you're considered a director AND they're going to be interested in the trading company as a whole since you own it on paper.

We had to provide tax returns, p&l statements, accountants letters etc and after all of that we weren't entitled to anything! (The joy of business ownership and centrelink)

If it's a new company you give an estimate for FTB purposes, they may go off your last years figures for parenting payment with a revision at tax time once returns are lodged.

[briggsy's girl]

Centrelink only need profit and loss and associated "stuff" if you are claiming something more than ftb. If only ftb, get your accountant to give you an estimate of income, update it online, and that's all you have to do. Having your own business can be very messy with centrelink but ONLY if you are claiming more than ftb/CCB/ccr!

[Mummato2]

True BG. That's why I gave the example of parenting payment. In our case, we were entitled to a small amount of FTB and this was done via an estimate, an application for parenting payment partnered required all the rest - but we were over the threshold.

One thing I am ok with though, the amount of checks done truly ensures you won't "accidentally" be overpaid!

[Beautiful Disaster]

So if hubby goes out as a subbie I still just estimate as normal? This is where I get so confused. I will only be getting ftb, ccr and ccb

[Mummato2]

If that is all you're going for then you only have to estimate

[briggsy's girl]

So if hubby goes out as a subbie I still just estimate as normal? This is where I get so confused. I will only be getting ftb, ccr and ccb

yup, all you have to do is estimate income - ftb is all based on what the ATO recognises as income.

it's other payments that are far more complicated (worth the effort if you are low income, don't get me wrong - been there done that myself with all the profit and loss stuff!)

[Beautiful Disaster]

That's the best news I've heard since he decided to do this. Is that the same whether he is a subby or a company?

[briggsy's girl]

fao only look at what the ATO count as income - so in terms of that info, you'd need to check with ato or accountant

[Beautiful Disaster]

Ok cool thank you BG. Ever so helpful xx