Blog Layout

Is The Party Business, Your Business?

Bethany O'Dwyer • Apr 24, 2012

The names 'Tupperware', 'Lorraine Lea Linen', and 'Chefs Toolbox' often remind people (especially women) of an evening with friends buying high quality products which are more expensive than what you would get in stores, but are also of much higher quality. These types of direct selling companies offer commissions to their sales force in return for them actively selling the products. 


In the last 12 months here in the office, we have had two staff members who have taken up these opportunities so there has been some discussion about when it is no longer classed as a hobby but is a business and so the income needs to be declared. Income in this example is the commission that is earned off sales, not the total sales amount. 


There is a list of questions on the ATO website which help to determine whether the activity you are undertaking is a business or a hobby. They are questions regarding the goal of the activity, manner in which it is undertaken and the characteristics of the activity.


(For the full list of questions visit: this website )


If you are operating as a hobby, the income you earn from the activity is tax-free and does not need to be declared in your tax return. If you are operating as a business, then you need to declare the income but it also means that you can claim deductions against that income as well. You may also be required to register for GST if your income is over $75,000. You can only claim losses from the activity if it is a business and meets the business tests for claiming non-commercial losses Find out more by clicking here 


In summary, it can be worthwhile finding a way to earn some extra money â€" especially if it is tax-free. Also, be sure to do your research and understand if it will be a business or a hobby and what your reporting requirements will be.

COVID-19 Stimulus Package - Coronavirus Income Support Supplement Payments
By Daniel Mangiameli 24 Mar, 2020
A $550 fortnightly Coronavirus supplement, to commence from 27 April for an initial six month period, will be paid to eligible recipients. Eligibility Permanent employees who are stood down or lose their employment, sole traders, the self-employed, casual workers and contract workers. This payment is in addition to the JobSeeker Payment under expanded accessibility Existing and new recipients of the JobSeeker Payment, Youth Allowance JobSeeker, Youth Allowance Student, Parenting Payment, Farm Household Allowance, Special Benefit If you're already receiving one of the welfare payments listed above, you don't actually have to do anything. Services Australia will automatically pay the Coronavirus Supplement to eligible recipients each fortnight. If you're not currently receiving welfare, you'll need to apply online at MyGov using a Centrelink account or contact Services Australia by phone. If you require further information on any of the above, require assistance in working out your eligibility or h
COVID-19 Stimulus Package - Apprentices & Trainees
By Daniel Mangiameli 24 Mar, 2020
In line with the second economic response package, the federal government is supporting small business to retain their apprentices and trainees. Wages subsidies will be paid to eligible employers equal to 50% of their apprentices/trainees wages from 1 January 2020 to 30 September 2020. Employers who are eligible will be reimbursed up to a maximum of $21,000 per apprentice/trainee. Eligibility The subsidy will be available to small businesses employing fewer than 20 full-time employees who retain an apprentice or trainee as at 1 March 2020. Has re-employed a displaced apprentice/trainee, who was employed by a small business at 1 March 2020 but who has since been released from their apprenticeship/traineeship by their employer. Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network (AASN) provider. Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian
COVID-19 Stimulus Package - Boosting Cash Flow Employer Payments
By Daniel Mangiameli 23 Mar, 2020
COVID-19 Stimulus Package – Boosting Cash Flow Employer Payments
By Daniel Mangiameli 17 Mar, 2020
We have already seen how COVID-19 has impacted our everyday living from our daily grocery shop, all the way through to our local community, sporting events & tourism industry.
By Ash Lawry 28 Jan, 2020
Is bad cash flow keeping you awake at night? It is common to see profitable businesses struggle with cash flow difficulties. Small Business owners need to understand the ebbs and flows of their business and plan ahead. The ideal situation for a business owner is to be able to pay all suppliers by due dates. Fall behind and the grapevine always seems to spread faster with bad news. A bad reputation for paying bills has many repercussions including difficulty in obtaining supplies and can also lead to a downturn in customers. It's common that many small businesses fail during their infancy. This is due to new business owners spending cash flow without planning for future liabilities including Tax, GST, PAYG Withholding and Superannuation commitments. It is often the second year in business that hurts most as you can get through the first year without paying any income tax. But when it catches up, it catches up two fold as you will be required to pay your prior years tax in full, and start paying instalment
By Shaun Lawry 09 Jun, 2017
Fact – 88% of sales is repeat business. It's at least 10 times easier to get another sale from an existing customer than a new prospect.
By Katrina Galluccio 31 May, 2017
Buying your very first home can be a very exciting process, but also an expensive one. It's very important to fully understand what you are getting into before making what is likely to be your most expensive purchase so far in your life. Here are some helpful hints that may make the process a little more stress free.
By Katrina Galluccio 30 May, 2017
Who wants to own their very first home?
By Tom Sala 20 Apr, 2017
If you haven't noticed over the last few years, metropolitan and suburban football has been struggling. Small community football clubs all across the land are folding or merging, as they can no longer support escalating player payments along with dwindling volunteer help.
By Kerry Thomson 19 Oct, 2016
Last Thursday night 6 representatives of GMG went to hear Chris Helder speak to an audience of approximately 90 people at Spoons Riverside, arranged by Swan Hill Inc. Chris is a certified practitioner of Neuro-Linguistic Programming specialising in advanced communication and behavioral modelling. Chris provided us with a high energy and entertaining account of personality characteristics, body language and how we can identify these. This is designed to help us to be more aware of our own personality traits and also of those around us. He also taught us his useful everyday communication techniques that can help us not only personally but professionally based on his FORD principle – Family, Occupation, Relax & Dreams (vulnerability). Chris was an informative, entertaining and insightful speaker and I'm sure everyone who attended learned a great deal. Below is a photo of our very own Ash Lawry with Chris Helder
More Posts
Share by: