Hobby Business Help?

[miley_take]

Hey All!

As a few of you know, photography is one of my passions. I'm now starting to charge for my skills, and it's now grown from an extra $50 a week to quite a bit more. I'm not wanting to do the dodgy and do under the table stuff, so I'm looking for some advice, or someone who has turned their hobby into a small business, as to what I do next regarding business, ABN & the biggest one being tax. And any other advice that may help me! I've started looking and I'm getting reaalllly overwhelmed.

Emily.

 

[abnrmal91]

Your best bet is to good to a financial advisor and get professional advice regarding tax issues. Good luck with your hobby.

 

[CrystalMoon]

I used to freelance my various skills having an ABN and as long as I kept it under the current amount threshold I didnt have to BAS etc It was very easy all I did was make sure on the books that my expenditures were more than my income and I never paid tax I actually got tax back :shock: I also made sure I had a good accountant
Hmmm something else to factor in if this is going to be a full time(only job)is the need to pay into your super and to put aside holiday pay. Oh and dont forget if you do have a job and this is a secondary job you will be paying 50 cents in the dollar for everything earned(this was when I was using my abn, it may have changed check with the tax department) I do know there are first business grants etc a small business advisor would be the way to go.... Most are not cheap, I thought there were some free services though? you might want to ask around about that

 

[Renenet]

Emily,

Good on you, that's so cool.

 

[Snake-Supplies]

You can earn quite alot of money under a hobbie....
It's not "dodgey, or under the table"

I'm looking to start one too...

Just say it cost's me $5000 to start,
I will keep all my reciepts for everything I use to start the "HOBBIE"
I can claim up to 5 years later. So if my "hobbie" works, I then decide to register as a bussiness, I can show them all the reciepts from 5 years ago that I used to start the bussiness. All I need to make in order to not lose, is $1000 a year, as if I do this, then I have broken even and after that, I become profitable.

The reason I am doing it that way, is I save money by not going through all the legal crap, tax this, register that, by registering as a bussiness if it doesn't work.

@ CM-
Well said.

 

[miley_take]

Thanks! Yeah I'm just unsure as to how much you can earn under a hobby before getting in trouble. Thanks everyone do far!

 

[Ambush]

$5,000 and below you dont have to pay tax.

 

[Snake-Supplies]

$5,000 and below you dont have to pay tax.

That's when you work...

I think it's heaps more if you do it on the side as a hobbie.

Plus you only have to pay tax on your profit...
Just make sure as CM said... make sure your expenses outweigh the profits.

 

[Renenet]

And if you class it as a hobby, I don't think you can claim your expenses as a deduction.