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]

To make this simple if your buy a 8.95 postage label this is 100 percent claimable if I change 8.95 that free postage. If I charge 10 I have to pay tax on 1.05. Which more than likely would also be written off by packaging costs and ebay fees

[davewil1964]

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@silver-fox-bullion wrote:
To make this simple if your buy a 8.95 postage label this is 100 percent claimable if I change 8.95 that free postage. If I charge 10 I have to pay tax on 1.05. Which more than likely would also be written off by packaging costs and ebay fees

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You are correct. Sort of. Whether you show postage as 'free' or as a separate amount, it is still a deductible expense.

As it is for me, regardless, as I mentioned previously, of how I apportion the postage in my sale price.

And, just like you, it reduces my taxable income by $8.95, as it is a legitimate cost of running my business.

Any business pays tax on their nett profit. Which is income less expenses. The difference is that I don't have to charge or remit GST, but I can still claim GST on my inputs as an expense.

[*tippy*toes*]

Oh great, Dennis Denuto is at it again. Please tell us which university you gained your law degree? Wasn't the University of Google was it? Or, where did you earn you Accountant degree? Probably the same university by the looks of it.

[silver-fox-bullion]

I see it went click re the free postage. Now back to the 1st post it eye opening the amount of people moaning about postage costs when if they were doing things above board there no cost

[silver-fox-bullion]

To tippy toes we are still looking into a few things re the double charging of gst that already been paid on byo postage watch this space

[*tippy*toes*]

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@silver-fox-bullion wrote:
To tippy toes we are still looking into a few things re the double charging of gst that already been paid on byo postage watch this space

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Good Lordy, that TOPIC has been done to DEATH. Ya NOT being charged double GST on postage. Ya can go on believing it if ya like, but ya AREN'T.

Call the GOVERNMENT if ya THINK ya BEIN' ripped OFF. Or, better STILL, call the POLICE.

Spoiler

There IS something MORBIDLY satisfying about ADDING random words in UPPERCASE.

Spoiler

I WISH I started this TREND.

[silver-fox-bullion]

The has called the ato and a couple other govt departments already they all to this point agree it a double charge of gst

[silver-fox-bullion]

As you can not charge GST on something that someone already owns. As ebay fee is clearly states it on postage.

[silver-fox-bullion]

And they have not played a part in that byo postage so have not provided a service so from our calls so far they fail the gst test

[joz15au]

Postage is indeed an expense for tax purposes in business just as it is for a private seller declaring their income in their tax returns. No difference. You seem to have changed your argument somewhat from the tax deductibility of the postage equating to free postage, to becoming free because you pass the cost on to the buyer, which will of course will have zero effect on your net income. I think most of the people who are concerned about the cost do not feel that they can increase charges to their customers and maintain sales, so in their case it does become an additional expense, and even with the tax deduction they will only recover an amount equivalent to their marginal tax rate. By the way I have been a tax accountant for 40 years and a very good one.