My wife runs a Chinese massage shop and has another woman working with her. They do not have an official partnership, but the woman keeps the full amount of each massage she performs and in return she pays half of the rent, utilities etc.. The total earnings for the last financial year, went over the $75000.00 threshold. However, as they pay their individual income tax bills, the amount for each of them is under the threshold. Do they still have to pay GST?
Hi Carl, It would be worthwhile formalising these agreements and getting some specific advice around this to make sure there isn't an issue in relation to GST. Unfortunately it is hard to give specific advice without going into more specific detail. Thanks Justin
Do you have to register for GST in this scenario? If you buy a privately-owned car for 49.5k, and re-sell it at 40% profit on gumtree for 82.5k cash. If you register for GST, you pay 7.5k GST and keep 25.5k profit. If you don't register for GST, you pay ZERO GST and keep 33k profit. That's a 7.5k GST savings. Let's assume you don't have any other income or expenses that year.
There are potentially some other aspects that might change some of the figures in your example, and I would recommend speaking to an Accountant or BAS Agent in terms of the detail, including whether this is being run as a business or enterprise. That would give you clear advice on whether your situation requires registration for GST.
@@RightSource It is run as a business for the purpose of profit. Sales of 82.5k per year maximum. Stock bought from private people. Accountant says speak to the ATO. ATO says speak to an accountant.
@@NoOne-jy6mc The ATO won't be able to help as it requires sitting down and understanding the full situation, which can not be done effectively over the phone or online. So sitting down with an Accountant that takes the time to understand your situation in detail is the way to go. If you want to discuss in more detail feel free to email explore@rightsource.com.au and we can set-up a time.
@@RightSource It's a very simple question, and a very simple situation. Also, a very simple answer: yes or no. Do we have to register for GST? How could a yes or no question justify a 1 hour $200+ sit-down appointment? I thought you made videos to genuinely help people, especially when it is such a simple question.
@@RightSource How about I ask an easier question... Let's say you sell 2 iphones weekly on Gumtree for $793.25 cash each, delivering them locally on foot. Total sales 82.5k annually. And you buy the iphones from random private people for $476 each. Do you have to register for GST?
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Thanks man. At. 75 speed it's like a conversation at the pub. I understood clearly.
Thanks for the useful info!👍👍👍
super clear explanation, thank you!
Thanks for the useful info. Can you deduct your total business-related fuel costs from the amount of GST you need to pay?
Thanks for Cleary explained.
Can we register for GST last quarter because we wouldn't be sure going over 75k?
You can register for GST whenever you want. Once over $75k it would then be required.
@@RightSource ❤️
Thank y very helpful
Do you know of any specific GST differences between Australia and the United States?
The United States is a very different environment and would be worth spending time on specifically.
My wife runs a Chinese massage shop and has another woman working with her. They do not have an official partnership, but the woman keeps the full amount of each massage she performs and in return she pays half of the rent, utilities etc.. The total earnings for the last financial year, went over the $75000.00 threshold. However, as they pay their individual income tax bills, the amount for each of them is under the threshold. Do they still have to pay GST?
Hi Carl, It would be worthwhile formalising these agreements and getting some specific advice around this to make sure there isn't an issue in relation to GST. Unfortunately it is hard to give specific advice without going into more specific detail.
Thanks
Justin
@@RightSource Thanks very much, Justin, will do some research.
Do you have to register for GST in this scenario? If you buy a privately-owned car for 49.5k, and re-sell it at 40% profit on gumtree for 82.5k cash. If you register for GST, you pay 7.5k GST and keep 25.5k profit. If you don't register for GST, you pay ZERO GST and keep 33k profit. That's a 7.5k GST savings. Let's assume you don't have any other income or expenses that year.
There are potentially some other aspects that might change some of the figures in your example, and I would recommend speaking to an Accountant or BAS Agent in terms of the detail, including whether this is being run as a business or enterprise. That would give you clear advice on whether your situation requires registration for GST.
@@RightSource It is run as a business for the purpose of profit. Sales of 82.5k per year maximum. Stock bought from private people. Accountant says speak to the ATO. ATO says speak to an accountant.
@@NoOne-jy6mc The ATO won't be able to help as it requires sitting down and understanding the full situation, which can not be done effectively over the phone or online. So sitting down with an Accountant that takes the time to understand your situation in detail is the way to go. If you want to discuss in more detail feel free to email explore@rightsource.com.au and we can set-up a time.
@@RightSource It's a very simple question, and a very simple situation. Also, a very simple answer: yes or no. Do we have to register for GST? How could a yes or no question justify a 1 hour $200+ sit-down appointment? I thought you made videos to genuinely help people, especially when it is such a simple question.
@@RightSource How about I ask an easier question... Let's say you sell 2 iphones weekly on Gumtree for $793.25 cash each, delivering them locally on foot. Total sales 82.5k annually. And you buy the iphones from random private people for $476 each. Do you have to register for GST?