Didn't the limit used to be $20,000 a year? Just remember people, if the ATO come asking it's "hobby income" and you had "no reasonable expectation" to make a profit.
Show numerous small purchases over time with invoices wherever possible. That's enough to put them back in their box. Even buying as cash, un-named on the invoice is fine. Legitimising your stack is one way to do this. That's only if you are selling. I wouldn't even call it hobby income, I would admit it only to it being my savings.
Me too! But in 10 years time I might have something decent. I just buy what I can with spare cash. The stuff I buy from here don't come with a receipt other then Paypal gift or a bank deposit transaction. But these do not show what they are for. So how can one prove they were for PMs?
there are benefits to running a small business, you can claim all costs associated including freight, electricity, depreciation on motor vehicles etc very easy to set up a small business as a sole trader or a partnership with your missus. BTW turnover of $10k will be lucky to nett you $1k outright profit in the end anyway they can have the $300 tax
I'm pretty sure it's a real email, why would anyone bother with it otherwise? they are not asking for details, just saying ebay will send them to the ATO. Anyway I just did my tax online using etax and there was a new page in etax this year asking if any earning were made from the internet, that's never been there before.
also the fact they want my ip address means they can then scan the net for any other dealings I might do online. Like in this forum, they could find everything like selling in the sales section in this forum. I wouldn;t of believed the email if I didn't pass $10,000 in sales, I added every months invoice up and that's what I got $10,049 so it's too much of a coincidence that i'd get the email as no-one could work out I passed 10k otherwise
But it doesn't even need to. If you buy a 1oz gold bar, sell it on ebay for the same price, go and buy a 1oz of gold coin, then sell it on ebay next month, buy 2 kg of silver f2f, decide to sell it on ebay, buy more bullion then sell it again. you've played with the same $1600 you started with, but because you've swapped it over and over your a business because you've made over $10,000 in sales. you see it here all the time, people flipping things over and not really getting any money, it's the same money.
Then I'll sell some, probably invest it overseas. What if I need to prove where the money came from? I'd sign a statutory declaration as to the truth of where my silver was obtained. I have no prior or current criminal proceedings, I don't associate with known criminals. I don't even have any traffic infringements in the past 7 years.
I thought the ATO came down hard on people that tried to claim their hobby as a business! If the ATO sent me a notice telling me I was carrying on a business selling my coin collection my response would be 'you beauty!' Sales income, minus purchase price, minus ebay fees, minus selling costs (Internet, computer equipment, packaging, travel costs to post office etc etc) = trading loss
Don't forget vehicle and fixture depreciation, electricity, rent/mortgage interest, storage fees, security (vault fees, dogs, home alarm ... etc) ... I'm pretty sure they'd back-off very quickly.
Anyone know how does ato regulate gambling money ? Say if i win 10k jackpot, how much tax do i have to pay ?
EVERYONE HAS TO READ THIS, IT IS A CRITICAL MISUNDERSTANDING... (sorry, I don't mean to pick on willrocks): This is incorrect. In Australia, the onus of proof has been reversed in many matters related to wealth, finance and tax. A couple of examples regarding tax: There are also a number of powerful and far-reaching unexplained wealth laws where the presumption is guilt and you need to prove your innocence. Remember also terrorism laws (where the definition of terrorism is fuzzy and ill-defined) are reversing presumption of innocence. Some snippets:
A scenario if you are on the radar or cause trouble: (a) A government agency makes a charge of either unexplained wealth or some finance related criminal activity against you. (b) Confiscation laws result in seizure of your assets and possibly the levying of heavy fines. (c) You now cannot fight the charges because you have few resources left and the gov. has deep pockets. This is not theoretical. In a high-profile case, the U.S. and New Zealand seized Dot Com's assets and froze his bank accounts making it difficult for him to fight the charges. While this may not be completely relevant to our situation in Australia, it does show that governments are becoming more emboldened with laws increasingly in their favor.
You're confusing civil law with criminal law. But yes, in general I agree that gov numpties are trying to erode foundations of the Australian legal system by reversing the onus of proof. And by having summary judgements, no juries in civil cases ... It's the way things are heading, and it's a slippery slope.
how would ATO figure out from the $10k how much was the profit? and why I mean why include postage too in the $10k? are they really that desperate for the money? I think its already pretty unfair from ebay that they charge the final value fee with postage included.