Home – New Forums Money matters Transition from Sole trader to P/L: FTB, CSA, Austudy Reply To: Transition from Sole trader to P/L: FTB, CSA, Austudy

  • Total posts: 21

Sorry, I should have mentioned I also spent a few hours to centrelink, austudy/NEIS and CSA, after seeing the accountant. I needed definitive answers.

Centrelink: Because I work part time, if I were to start a small business, Centrelink need me to fill out a P&L statement every month for 3 months. They will then take an average of the sales after deductions and base the FTB A &B according the my current part time wage plus business income.

CSA: They said if all combined income totals less than $20428/year, it falls into the Self-Support bracket, meaning no child support is payable to the ex-partner. CS is based on previous years tax return.

Austudy/NEIS: I asked what if I quit my part time and go onto the NEIS scheme. They said, don’t do it as there are job seeking requirements and will interfere with your study. Plus, you cannot qualify for NEIS if you receive Austudy, and must receive an eligible income support payment from Centrelink, eg: parenting payment, which I do not receive. He said, just keep studying your degree, which means austudy payments and the two $1000 scholarship payments per year. You will be better off, instead of cutting certain benefits in hopes to create an income solely derived from starting a business.

Funny thing was, I now remember the accountant telling me “Make sure you keep up with your uni study. Most people I find earning at least $60,000/year all have a degree.” Hmm, a hidden message perhaps? eg: give up your dreams and work for someone else, it’s easier.

Anyway, that was another point that put me off.