Postage and people complaining about cost

[silver-fox-bullion]

It been really eye opening reading so many people complaining about postage costs. The thing that gets me there must be alot of sellers running business like selling but NOT abn registered. If they were your postage is FREE no matter what it costs. As all postage costs are a tax write off for business. Just something to think about

[silver-fox-bullion]

Or very bad accountant's

[davewil1964]

Or no understanding of business.

Whether registered for an ABN or not, postage is not free. It is an expense, no matter how apportioned.

[silver-fox-bullion]

Yep it a expense but it a tax deduction for bussiness where it not for a private seller

[davewil1964]

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@silver-fox-bullion wrote:
Yep it a expense but it a tax deduction for bussiness where it not for a private seller

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It is if the private seller is declaring their income.

Nothing to do with an ABN, or GST registration for that matter.

Please stop trying to spread misinformation.

[silver-fox-bullion]

A business can write off postage cost as part of the earnings of the sale like the ebay fees etc. Which in turn see a business getting free postage. As above there must be some people using really bad accountants if the postage is not getting written off

[silver-fox-bullion]

Lol you may want to look up a few things as it clear you have no idea re postage costs and business and tax laws on what they can write off and not

[davewil1964]

I am not a business.

I do, however declare my income to the ATO.

Which means that my postage (and many other costs) are tax-deductible.

Regardless, offering 'free' (ie included) postage does not negate the expense, or the ability to claim a deduction for the expense.

If you want to play accountants, go for it.

You seem to have no understanding of tax law, for starters.

And it's not free. Even on the 30% bracket, (which a business pays) an expense reduces tax by 30%, so no expense is free, compared to not incurring it in the first place.

For example - I sell something for $10, 'free' post. It costs me $1.50 in eBay and Paypal fees, plus $2.52 for postage. So I make $5.98 less item cost (say $1.00), call it $5.00. I pay tax on that $5.00. If I charge $7.50 plus $2.50 postage, after expenses I make $5.00, which I pay tax on. Which means I make $3.50

If I was getting the postage for free, I would be paying tax on $7.50, and ending up with $5.25, but AP won't come to the party. 

As above, you seem to have no understanding of tax law.

[silver-fox-bullion]

In bussiness it not classed as an expense for tax purposes but a write off that the difference between a private seller an abn holder. Again research

[davewil1964]

Gross profit, EBITDA, is gross profit, from which everything else is calculated.

Writeoffs are for reduced capital value.

I certainly hope you're not doing your own accounting.

And it's irrelevant, anyway. A business pays tax on their profits, just like non-ABN registered sole traders.