Selling for child and elderly neighbour
Summary: The discussion revolves around the topic of selling items on behalf of a child and an elderly neighbour. mofy11, the original poster, initiated the conversation, and it received responses from multiple participants including k1ooo-slr-sales, p9games, and domino-710. The conversation seems to involve logistical aspects and possibly ethical considerations of such a scenario, although the specific details and views shared by each participant are not explicitly mentioned.
Hi .. just wondering how eBay works if you sell items for your child ( under age of 18 ) and mother ( aged 88 and not good on computers ..lol ) and give the funds from the sale to them how to prove if the combination of mine and theirs then exceeds to ATO amount for private selling which I think is $10K a year . I have sold some valuable items for both of them which just reflects in my total yearly sales . Has anyone been in a similar situation ?
pnc75
·1 year agoThe seller has to reach the threshold first. Lot of people jumping to conclusions
k1ooo-slr-sales
·1 year agoI read the Opening Post as saying the OP was going to exceed the $10K threshold for mandatory reporting by eBay to the ATO.
pnc75
·1 year agoFair enough. I didn't read that into it; just saw it a simple question. Cheers.
domino-710
·1 year agoAs it can be read - the main problem is with the OP - we don't know if neighbour/Mum is on benefits - could be self funded - we don't know how old the under 18 is - 16 year olds working - have tax taken - so would put in a return.
There is nothing stopping the OP - from purchasing from the neighbour/Mum - incomings and outgoings - same with under 18.
Costs - purchases - come off your income.
You pay tax on the profits.
There is no law against - from whom you buy.
You can earn around $11,000 without a pension being affected.
Disclaimer - I'm not an accountant.
etb321
·1 year agoSo there are two separate issues:
The first is with the ATO, reporting (or not reporting) income. The threshold for ebay sales is $10k (including fees and postage). If you don't declare this income and the ATO believe it was deliberate then Heaven help you...
The second is with Centerlink. The threshold for earnings is $1. Yes, you can earn 11K(ish) but the cost of doing so is having to submit CL profit and loss statements and submit a tax return. If you don't you will recieve a very scary Letter of Demand from CL.
domino-710
·1 year agoWell - no.
There is the operative word ' income '.
There is a difference between a business & a hobby.
If - as I believe all assets - including - collections - have to be declared initially - the selling of those does not imply ' income '.
eBay only declares over $10,000 to sort out the businesses as opposed to the hobbies.
etb321
·1 year agoYou are mixing up the ATO with CL.
Walking down the street you happen upon a $100 note. Clearly not a regular event, no need to mention it to the ATO. You should ; however, report this as 'income' to CL.
p9games
·1 year agoEbay sales are reported to the ATO. And the ATO will assume the revenue belongs to the person whose name is on the account.
I really can't imagine ATO accepting that the revenue should be divided up between a gaggle of people.
"Uhm, this $50k belongs to my elderly friend. This $20k is my neighbour, this $15k is my uncle Bob and this $10k is Uncle Bob's dog"
I'm no expert but I imagine this would be seen by the ATO as an attempt at strategically splitting income between a number of parties to maximum advantage / minimum disadvantage.
Unless you have traded as a company or trust with clear owners and shareholders, if it's your account then the sales are yours, as a sole trader. You may choose to disburse monies to your elderly friend, your neighbour, Uncle bob and his dog, but you'll be on the hook for any tax liabilities and any negative impact to entitlements.
These are really topics to explore BEFORE you embark on your ebay sales career.
domino-710
·1 year agoThe ATO - does not ' assume '.
The rest...........................................
etb321
·1 year agoI agree, but the ATO is also realistic. They won't waste resources going after minnows. If you've just told a few porkies in the deductions area of your return they're likely to let it slide. What they are looking for is significant undeclared income.
sandypebbles
·1 year agoIs it your elderly neighbour as per your heading. or your elderly mum as per your post (unless your mum is your neighbour)
Honestly, you need expert advise
And you needed to get it before you sold for them
I am sure you do not want elderly anyone having their benefits cut off
etb321
·1 year agoShould you declare the income or not?
Declare it and pay a bit more tax The cost is just part and parcel of caring for an aged loved one and a child.
Do not, under any circumstance, open an ebay or any other online selling account for your mum. Failure to meet centerlink's income reporting requirements will put her entire benefit at risk.
sugar249
·1 year agoPersonally I would ignore any information provided in a 10 year old thread. The world has moved on since than. If you are concerned about centerlink, ask centrelink, not 10 year old advice. Even some of the links provided within that thread no longer exist.
domino-710
·1 year agoThis question should be asked of the ATO - to whom Centrelink report.
k1ooo-slr-sales
·1 year agohave a read of this thread 👇. Even though it is 10 years old, the information posted by members who no longer post here is good advice/information.
I'm talking specifically of lyndal1838, digital*ghost, and thecatspjs, they know about these things.
https://community.ebay.com.au/t5/Selling/Do-you-realise-you-have-to-report-your-ebay-earnings-to/td-p/1548495
Do not post on that thread, read only
k1ooo-slr-sales
·1 year agohow eBay works is that if you sell for them on your eBay account you are responsible for the listings and sales and all that goes with that.
Better to sit with your mum and help her set up her own eBay account and managed payments and just run that for her. In effect, you become their unpaid manager of their account, with no links that would spark interest from the ATO.
As for under 18 daughter, wait till she is 18 and do the same.
If you do intend to sell their stuff on your account, you should seek professional advice or ATO advice.
Disclaimer: I have no formal training in tax matters. Any advice given above should not be considered as professional advice. I accept no responsibility if what I have written is wrong.
k1ooo-slr-sales
·1 year agofurther to my post above, while extending my disclaimer to all things Centrelink related, you may need to discuss selling your mum's items with Centrelink as money received from that selling may impact her Centrelink entitlements, even if the items sold are long-held personal items.
It can be a minefield.