Home – New Forums New here? Share your story So many questions

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  • #970269
    actonlineaustralia.com
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    • Total posts: 16
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    Hey All,

    Well Ive decided to try and add to my income and start a little business on the side and this has some nice potential. With this comes a lot of questions and so I joined this site to stand on the shoulders of others who have been in the same situation and have made a go of it.

    I have resistered my business and got an ABN and started working on a website. I sell most of my items through ebay but am keep on return customers going striaght to my site tso to avoid addtional ebay costs.

    My first question is as follows:
    My day job is a teacher and I earn 97K
    as a sole trader do my profits just go on top of what I earn and just push up my tax thresh hold or do I as a sole trader run business cash as totally seperate pay tax associated with my business seperately.

    Im not sure if I am making sense. Im very new to all of this and Im still learning about gst and all that other crap.

    Basically come tax time I dont want to get stuck with a massive unexpected bill.

    Regards

    Matt

    #1043405
    Anonymous
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    • Total posts: 11,464
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    Hi Everlast,

    Welcome to Flying Solo and congratulations on taking the plunge!

    Hope a beancounter or two pops in to help you understand the tax issues etc soon.

    Good luck for your new business,
    Jayne

    #1043406
    yourvirtualboard
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    Income as a sole trader is no different to income in your personal capacity – they will be lumped together for your tax return.

    #1043407
    Rhys
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    Hi Everlast,

    Yes Harry’s exactly right, the 2 get added together. Based on what you have written – that you make 97k from you current job – you will be looking at getting taxed at 40% on whatever profit you make from your business (up to 180k, more after). Might be worth talking to a tax accountant at the outset to get some advise on whole set up (personal tax, GST, etc),

    Cheers, Rhys

    #1043408
    DavidThomas
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    The income is added together, but the flipi side is so is the expenses, so in your first two years, you should have relatively ‘high’ startup related expenses which could reduce your tax overall.

    Of course, best to speak to an accountant.

    Actually, have you considered maybe there is someone at your School who teaches accountancy and might be able to help – free?

    #1043409
    actonlineaustralia.com
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    • Total posts: 16
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    Wow thanks everyone. Finally a forum where you get straight up helpful answers.

    Great advice and thank you all very much for the welcome

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