• The place to find the right expertise and make better decisions
  • Find the right expertise
paul c.
paul c.
Seaford, VIC
0 Likes
0 Followers

I would like to start a small online business I would like to know if this will affect our family benifit , a simple example.
I purchase a product for say $10 I then sell the item for $20 including free delivery which cost me $8 so I have only made $2 profit but I recieved $20 .
when I declare earned income to centerlink is it $20 or $2 ?
Regards
Paul

6 years ago

Responses

Hi Paul

Congratulations on you thinking to start a business. All the best.

On to your question. Yes it will affect your family benefit received if the business makes a profit.

In your example the income you will have to declare to Centrelink will be $2 but don’t forget you will have other business expenses - telephones, internet, etc and this can be claimed against your business income reducing the profit and thus your taxable income.

Hope this helps.

6 years ago

Thank so much I have one more question if I purchase more products to sell with the $2 do I still have to declare it as income
Thank you in advance
Paul

Comments

Hi Paul

Yes you would still have to declare the $2 to centrelink as that is your income. The reinvestement you make to buy more stock is an asset.

Hi Paul, purchases of stock are deductible, so the PURCHASE is a tax deduction.

Closing stock COULD be assesable income, however I am guessing that you would probably be able to ignore movements in trading stock for tax purposes, and hence you income would be $0. You have another question on this subject to which I have posted a longer answer.......

Best thing you can do is invest some time and money in research on trading stock and income tax.....and get some advice from a good local accounting type
regards
brendan

Your Answer

If you wish to include a video or audio response, you can do this by including links to Youtube, Vimeo or SoundCloud (https://www.youtube.com/watch?v=xxxxxxxxxx OR https://vimeo.com/xxxxxxxxx)

<% error.message %>