Centelink reporting. is it better to buy things to sell or just sell what you have around the house?

[lizzy6107]

Hi Guys

i am unable to work at the moment due to illness and have applied for some government assistance while I get better. I have been selling a few things here and there on ebay, and was hoping to keep this up while recuperating. Is anyone recieving centrelink benefits, and should I buy things to sell, or just sell stuff around the house.. is one better than the other when it comes to declaring income? can I do both? I haven't had to report yet, but want to understand before I do!

thanks in advance

Eliza

[lyndal1838 · Accepted solution]

Do NOT buy things to sell....that automatically puts you on a business basis and is declared as income for which you could be penalised.

There is nothing to stop you selling your own possessions and you should not be penalised by loss of benefits.

[imastawka]

If you sell things from around the house, that's considered a hobby, and doesn't

need reporting.

But the minute you buy to re-sell, then that's a business,  and must be reported

to Centrelink.

So, sell lots of things that you find around the house for now.

Edit:  How can you say 'selling a few things' when you have a store with over

2,000 items for sale???

[lizzy6107]

thank you.

[lyndal1838]

That'll teach me to look at what the OP is selling.

There is no way she will get away with saying it is hobby selling with a store selling so many different sized clothing items.

Far better to declare it honestly than to risk the severe penalties that may be imposed for wrong reporting.

[imastawka]

Yeah.  I answered before I looked too.

That's def a business that needs to be reported to Centrelink IMO

[davewil1964]

I looked. It's a bit hard to rack up 6000+ feedback just selling personal possessions. I managed about 50 before I started buying for resale.

Unless they buy stuff, take it out of the packaging, claim it was for personal use, take the loss on a used rather than new item...

[clarry100]

Keep in mind that if you have over $10,000 in sales in a tax year that Ebay are obliged to report your sales to the ATO. The ATO will then expect to see your sales income declared.

Of course the ATO and CentreLink talk freely with each other so its only a matter of time before you get a please explain letter from both of them.

Tax Avoidance and making false CentreLink claims are both serious offences. So you need to think very carefully about what you are doing here.

[Anonymous]

Key questions to consider:

Is the activity being undertaken for commercial reasons?

Is your main intention, purpose or prospect to make a profit?

Do you regularly and repeatedly undertake your activity?

Is your activity planned, organised and carried out in a businesslike manner?

If you answer yesy to any of the above then you are running a business.

I guess if you are making too much selling items around the home you can

easily argue ( from a business standpoint ) that all the items were sold at a loss.

It might get sticky though if you can't provide original proof of purchase.

[Anonymous]

If you are dealing with Centrelink then there are income thresholds involved

which can affect the level of government benefit.

Best see an accountant or tax agent or you might just get a nasty surprise and

end up owing Centrelink.