Tax

[Autocon]

if your selling toys like tfs! what are the tax laws? is there a certain amount when u go over u have to pay tax?

:confused::confused:

[GoktimusPrime]

I imagine that laws would differ depending on whether you're selling the toys for commercial reasons (e.g. you're a dealer or retailer) or not.

[Lint]

If you sell by cash it technically didn't happen. However anything that enters your bank accounts can be assessed for tax. Generally the ATO won't bother if your income via private sales is under ~$15k. Besides which, most sales of TFs are generally a capital loss anyway.


So the shortanswer is NO.

If someone who is an accountant knows otherwise now is the time to correct me :p

[autobreadticon]

Hobby no tax

[griffin]

Unless you are a registered business and had over $5000 in sales in the year, tax isn't something to worry about.

[langzixinxin]

Hobby no tax

+1

[Mr Ed]

The Australian Taxation Office has issued a ruling:

Taxation Ruling TR 97/11 – Am I carrying on a business of primary production?
It is equally applicable for businesses.

When you read the ruling, you have to consider many indicia.

http://www.ato.gov.au/individuals/content.asp?doc=/content/66241.htm&page=7&H7

[Burn]

They really look at it as a "garage sale" type thing.

As others have said, it really comes down to it being a regular source and having a substantial amount.

Of course if you were also just a average wage earner, working a normal daily job, and paying tax, they probably wouldn't even look in your direction unless you made some ridiculous deduction claims and then they might audit you and even then they'd only make you justify your claims.

One thing to be careful for though is if you register yourself for an Australian Business Number. If you have one and don't really "trade" on it in about two years they'll contact you to see what's up and see if you want to still have an active ABN.

TL;DR ... the odds of you attacting the attention of the ATO for them to audit you and get caught not putting TF sales in are pretty miniscule.