I can't start my business because of the GOVERNMENT!

[digitaltechtronic]

Hi, I am from Victoria and here on my first post with a problem at hand that I have not been able to find a solution. I have just been working on other sections of the business plans.
Any one have info for someone who is starting from scratch on fortnightly government payments?? I am in a very awkward position and I don't know where to go to make this work.. If I hade the choice j would have a store open now would have all business plans in place you name it to will be done.
I have been to all the .gov websites I understand it but I haven't found the answer and I don't want to screw up my payments. Because it's not like I will be able to live off of eBay profits for the first year who knows..it will all go back into the business for fees stock whatever I need.
Any help that is on topic is very welcome.

Any one with any experience with this sort of situation please do help also anyone with general knowledge in the sector for business and government payments or just a guy or gall with the right info please do contribute ✌️

Sorry it's all messy I hope you can get where I am coming from, it's hard I have this massive rock in my mind blocking my project thoughts and my creativity because I cannot expand on eBay in my situation at this time…
Appreciate all help thanks :J

[lyndal1838]

A Dangerous Goods Licence is a Dangerous Goods Licence....where did I say my OH has a Dangerous Goods Contract with AP to allow him to send his own dangerous goods?

[lyndal1838]

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@lane-ends wrote:

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@lyndal1838 wrote:

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@lane-ends wrote:

You can have an ABN without being registered for GST. Stay below GST requirement threshold if you can as it means 10% of profits go to ATO, and in reality you can't collect any more more from buyers simply because you are registered for GST.

If you do end up on submitting annual business incomes that affect your payment, they will affect it until the next submission. So a good year can cut your payments for the next year, in which in may not do so well. 

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The GST is not 10% of profits....it is 10% of income less any GST credits you can claim back because you have bought from a GST registered supplier.

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which in effect is 10% of your mark up=your profit. 

In principle it is 10% of the extra value you have added by providing your service.

If you are doubling the price you paid for it then your suppliers gst is half what yours is. so half of what you charge in gst is deductable. Your gst is 10% of total sale price of which you get 5% back asa supply deduction. If you are then paying 5% balance of total and only half of that is profit, then that ends up being around 10% of your profit.

If your source is not gst registered then you get no deduction,and its 10% of total sale price regardless of margin. Taken to extremes a 10% mark up will be 100% of profit gone in gst.

Bottom line being gst registered you get to do extra bookwork each quater and send a gst tax payment to ATO. If you aren't you dont. You can't charge anymore on top of sale price so it comes out of your pocket. In a market place where sellers are a mix of gst and non gst registered it does'nt even out across the board the same way a level playing field would (eg supermarkets, who all pay gst so everyones prices go up).

I used to be registered, then I deregistered. Same money came in only difference was less bookwork and not sending a quarterly payment to ATO

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While I can see where you are coming from, the GST is not 10% of your profit.

In your example you ae talking about 10% of your markup, which is not profit. 

Profit is the amount you have left over after paying for your items, ebay and paypal fees, postage and any other expenses associated with selling the item.

[lane-ends]

And your mark up is greater than your profit, as you are right there are other expenses that are not gst deductable. Whereas the liability is on total money charged for item, but deductions are only for gst deductable items.

ie buy for $50 (gst paid on this is dedectable)

sell for $100 (gst on this is laibility)

Mark up $50, but there are probably other expenses you pay and losses you carry so your profit may only be $30, yet the gst you give the taxman is based on the 100-50 mark up.

Whatever the final sum comes to without an ability to add this to the price without loosing sales to those that dont causes a loss to you. Better to not pay a tax, than pay one and get some of it deducted. Only way deductions are greater than liability is if you are making a loss.

[davewil1964]

However the portion of the markup paid as GST is not then liable for income tax.

Your example -

Cost $50 inc $4.50 GST.

Sale price $100 including $9 GST.

Other costs $20 (including $10 postage which consists of 90c GST)

So your income is $26.40 (100 - 70 + 3.60 GST), which is what you pay tax on.

If you are not liable for GST -

Costs to sell are $70 and you pay tax on the remaining $30.

So, the entire GST is not lost money, only the after-tax portion. And the difference, while material, is not a lot ($2.40 if you are on 30% income tax), so mark the $100 item up to $103. I doubt it will make it unsaleable.

[colic2bullsgirlore]

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@lyndal1838 wrote:

A Dangerous Goods Licence is a Dangerous Goods Licence....where did I say my OH has a Dangerous Goods Contract with AP to allow him to send his own dangerous goods?

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you implied it here in this post below ie "trust me..... trust my info...... here are the reasons why you should'

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"I can guarantee that you need a Dangerous Goods Licence and a contract with Australia Post to send perfume by mail....and you need to follow the packaging rules that you need to know to get your DGL.  You are not supposed to use satchels for dangerous goods whether you sign the declaration or not.  You are very lucky you perfume only took 10 days to WA...indeed you are lucky it arrived at all.

My authority is 3 members of my family including me having a total of 70+ years in the courier industry.  My OH is currently with StarTrack (owned by Australia Post) and holds a current DGL."

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Well, I can guarantee you 100% that you only need a Commercial commdoities dangerous goods contract with AP to

send dangerous goods.

I can also guarantee you 100% that your husband's Dangerous goods licence... the one that is, a "Dangerous

goods licence" does not allow your husband to send his own dangerous goods via Australia Post as you

implied...

I can also guarantee you 100% that the possessor of a commercial commodities cannot drive the truck that picks up and

delivers the dangerous goods but conversely I can guarantee you 100% that your husbands dangerous goods drivers

licence (DGL) allows him to drive the truck that picks up and delivers the dangerous goods

It is a board furphey....... So, to put it plainly you definitely do not require a DGL you need a commercial commodities

dangeroud goods contract....simple

[bullitprooftools2016]

" I can't start my business because of the GOVERNMENT! "  Don't you mean Centerlink?  WhaT IS the amount you can earn each month before the dollars start dropping off your benefit cheque?  I don't know what it is now but a decade ago it was a pitance.

I live off my own money but if I tried to live of my ebay profits it would be fish head soup and rice for dinner every night!

Unless you have a unique product to sell it's a hard game!

[beachandboho]

I don't like the title "I can't start my business because of the Government".

I think it should be "thanks to the Government for supporting me financially while I start my own business".

Sometimes people really forget how lucky they are living in Australia.

[lyndal1838]

It is 3 weeks since the OP started this thread and so far he has taken very little notice of any of the information he has been given.

I have a feeling it has all become too hard so he will just go on his merry way and keep blaming everyone but himself if the business does not get off the ground.

[imastawka]

Yep.  I did notice that they were still starting auctions at 1c with free postage.

Just no telling some people.

But, hey, it must be the government stopping all that profit!

[*tippy*toes*]

Not to mention they are passing off costume jewellery as high quality jewellery. They are also setting themselves up for INR's. In their postage blurb, they have suggested that if you want the item posted to a different location than the address in PayPal, to leave a message in the "notes" when paying stating the other address.

Clearly they have taken on board everything that was suggested to them on here................hmmmm.

I think his eBay career will be pretty short lived some how. I guess we can just sit back and wait for the next message where they come back complaining that they are losing money on their sales.