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  • #983556
    kirstenmichel
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    Hi everyone, I’m enjoying the sense of community on this forum and would like to reach out for some help with some questions I have.

    I’m a stayhome mum who has started working via the internet. I provide online services (copywriting etc). I was having 1 or 2 assignments but it was very sparse & low paid so more like a hobby.

    Recently, I have gotten on-going contracts with 3 different employers (to start in the next few weeks). I am starting to see myself as a business now and want to do things systematically. I also recently went out & bought a new laptop, book case for filing purposes, installed decent broadband internet & got a home office phone.

    1) If I register for an ABN now, can I claim back on the things I have just spend in the last couple of weeks?

    2) As tax time in coming again, I’m a little confused. I would have probably earned about $400 all up by then but my expenditure on my business would probably be in the $800 mark. How does this all work out? Would that constitute a loss? Will I still be able to claim back what I spend?

    I hope these questions even make sense as I am really confused and have never looked into this topic specifically before. I appreciate any help and advice I can get. Thank you!

    #1143037
    KellyB
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    Hi Kirstin,

    Hopefully I can try to answer some of your questions (and hopefully an bookkeeper/accountant will be able to clarify!!!)

    1/ When I registered an ABN (it was a long time ago!!), you could put your start date as a date earlier than the current date, so if you have that option, you can put a date before your first purchase, so you can claim your outlay as business expenses

    2/ The ATO have something called Non-Commercial Losses. Basically what is means is that if you earn less than $20,000 from your business, you can’t claim your losses against other income (eg from paid employment). Instead your business income from the year will just be $0, and you will ‘carry forward’ the $400 to a later year, to offset any profits you make in the future.

    Hope that helps!! :)

    #1143038
    Jodie McLeod
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    Hi Kirsten,

    Welcome to the forums on behalf of the Flying Solo team!

    As well as finding answers here on the forums, there’s plenty of tax tips to be found in our finance section of articles.

    Best of luck!

    Jodie

    #1143039
    Healthy Personal Finances
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    • Total posts: 194
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    Hi Kirsten
    Yes, regsiter for an ABN and if need, also a business name.

    Put your registration date when you first started to incur costs related to earning your income for the new contracts.

    If you operate at a loss for the current financial year, agree, this loss cannot be offset against any other income, but carried forward on your tax return to the next financial year and will offset against your income earned next year.

    Cheers
    Stacey

    #1143040
    kirstenmichel
    Member
    • Total posts: 4
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    Healthy Personal Finances, post: 163784 wrote:
    Hi Kirsten
    Yes, regsiter for an ABN and if need, also a business name.

    Put your registration date when you first started to incur costs related to earning your income for the new contracts.

    If you operate at a loss for the current financial year, agree, this loss cannot be offset against any other income, but carried forward on your tax return to the next financial year and will offset against your income earned next year.

    Cheers
    Stacey

    Thanks Stacey. You have definitely answered my questions. Much appreciated :)

    #1143041
    kirstenmichel
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    • Total posts: 4
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    KellyB, post: 163596 wrote:
    Hi Kirstin,

    Hopefully I can try to answer some of your questions (and hopefully an bookkeeper/accountant will be able to clarify!!!)

    1/ When I registered an ABN (it was a long time ago!!), you could put your start date as a date earlier than the current date, so if you have that option, you can put a date before your first purchase, so you can claim your outlay as business expenses

    2/ The ATO have something called Non-Commercial Losses. Basically what is means is that if you earn less than $20,000 from your business, you can’t claim your losses against other income (eg from paid employment). Instead your business income from the year will just be $0, and you will ‘carry forward’ the $400 to a later year, to offset any profits you make in the future.

    Hope that helps!! :)

    Thanks Kelly, you have definitely answered my questions. Thanks for also giving me info about non-commercial losses. Much appreciated :)

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