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  • #989187
    Anonymous
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    Hi I’m a sole trader who registered an ABN last year.

    I had an eBay store selling used items with around $5500 total sales for the year and didn’t properly keep records however I made no money and ran it at a loss stupidly for a few months before giving up on it.

    I’m trying to fill out my e-tax and I’m at section 15 “Net Income or Loss from Business” and I’m completely confused. I fill out “Details of Main Business” and then I get lost.

    What is “Primary Production” and what is “Non-primary production”? Do I fill that out for my online store?

    “Opening stock” What does that mean? and “Closing Stock” and “Purchases and other costs” ?

    I can’t afford an accountant and I’m at a loss of what to do. ATO said they will call me back within 48 hours but I don’t even know what to say to the guy who calls lol.

    Thanks guys.

    Important edit: Do I include sales and loses made before I got my ABN? I did about $1000 before signing up.

    #1170817
    Past-Member
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    I could be wrong, but I think you may be classed as a ‘hobby’ this year. In order to claim expenses you must turn over $20K a year. And to pay tax you have to be earning over $18K.

    Having a chat to the ATO person is a good idea as you may be worrying about nothing and just have to put in a plain tax return without doing the business bit.
    See what the ATO person has to say.

    #1170818
    Anonymous
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    Well I’ve done some quick calculations with what records I have and I think I actually made negative $500 or something for the whole year. I had a part-time job as well which I made $17.5k for the year.

    I had no “opening stock”, I bought as I sold basically so I will keep that at zero and just fill out “Purchases and other stock” which basically equated to my total sales.

    Should this be sufficient? I doubt they would audit me and if they did I can give them everything and they’ll see I didn’t make any money.

    #1170819
    NM Books
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    Hi there
    When you talk to the ATO, explain what your situation is. Don’t go into questions about the form. See what they say, and if you have to fill in the business section, then ask your questions regarding the form.
    Hope this helps and good luck.

    #1170820
    ZoeGillard
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    kg, post: 198247 wrote:
    Hi I’m a sole trader who registered an ABN last year.

    I had an eBay store selling used items with around $5500 total sales for the year and didn’t properly keep records however I made no money and ran it at a loss stupidly for a few months before giving up on it.

    I’m trying to fill out my e-tax and I’m at section 15 “Net Income or Loss from Business” and I’m completely confused. I fill out “Details of Main Business” and then I get lost.

    What is “Primary Production” and what is “Non-primary production”? Do I fill that out for my online store?

    “Opening stock” What does that mean? and “Closing Stock” and “Purchases and other costs” ?

    I can’t afford an accountant and I’m at a loss of what to do. ATO said they will call me back within 48 hours but I don’t even know what to say to the guy who calls lol.

    Thanks guys.

    Important edit: Do I include sales and loses made before I got my ABN? I did about $1000 before signing up.

    Primary production relates to industries such as farming, so you would put your income and expenses in the non-primary production areas.

    Opening stock is the stock you had on hand at the beginning of the year, so if you had none then yes 0 is correct, closing stock similarly is the stock you had on hand at the end of the year, which can be valued different ways. Purchases and other costs is basically what you paid for your stock or what you purchased.

    If your business resulted in a loss you are probably going to be subject to the non-commercial loss rules which means that the loss is not offset from your income but gets carried forward and used to reduce any profit the business makes in future years.

    In relation to your income pre ABN you can probably class this as hobby income which means you do not have to declare it, I cannot guarantee that is correct though.

    Also in relation to record keeping I would make sure you start keeping track of everything now, bank statements can be good for this. I would also suggest you start logging the time you spend on your computer and on the internet as you may be eligible for depreciation and internet deductions related to the business use portion. If you work from home you may also be eligible for home office expenses.

    I hope this helps, feel free to message me should you have further questions.

    Regards
    Zoe

    #1170821
    actonlineaustralia.com
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    If your selling less than 75K per year then its a hobby.
    If your selling over that then you have to pay.
    I use Xero accounting software
    and I also use OneSaas software as well.

    OneSaas is an add-on that links directly to your Xero account and automatically produces your BAS statement. It’s beautiful!!
    the only thing Im having to do is put in my expenses that happen outside of ebay.

    #1170822
    bb1
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    actonlineaustralia.com, post: 200797 wrote:
    If your selling less than 75K per year then its a hobby.
    If your selling over that then you have to pay..

    I strongly recommend that you check the facts on this one, there is no such thing that it is a hobby below 75K.

    Read the ATO guidance on a hobby

    https://www.ato.gov.au/Business/Starting-and-running-your-small-business/In-detail/Getting-started/Online-selling—hobby-or-business-/?page=2#Hobby__or_business___how_do_you_tell_the_difference_

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