Tupperware...

[AppleIsleSMum]

Ok, does anyone know if doing Tupperware is still classed as a hobby??? Alot of people have told me it is BUT when I rang the tax office they said any income from Tupperware should be noted when doing tax... But she didn't even sound 100%
my DP's ExW has been doing it since the start of the year and reckons she doesn't have to include it...
Drives me crazy she can be earning all this extra money and it doesn't affect DPs CS at all >:| grrr

[Californication]

I think you have to earn over $50K before you have to declare it.

I know when I was doing it I didn't, but I was only making $5-600 a month from it.

[MsMummy]

From memory, there's an ATO ruling on it. Their site is hard to navigate, and their rulings can be a bit complicated.

I don't think there is a strict dollar amount. I think it is a list of criteria as to whether it is a hobby or a business.

I would have thought you would have had to declare profit made on tupperware.

Is she getting any FTB or Centrelink payment? I would dob her in as they are normally interested in undeclared income.

[MsMummy]

http://www.ato.gov.au/content/66884.htm

Based on that, I can't see how it's not a business. Why would people sell plastic for recreation?

I think stuff like painting is more borderline. For example, my MIL paints primarily as a hobby, but has started selling. At some point, it will probably become a business, but didn't start off as one.

But, I'm not an accountant so I'm not really sure.

[AppleIsleSMum]

Thanks ladies! Yes I went on their site and it was a bit confusing. She's told us she hasn't declared it and she doesn't have to until she's a manager... But I know she's making a fair bit on it as she keeps bragging about how she keeps getting in the top 10 demonstrators in aus or some crap and shes always giving us SD because she always has parties... so we are just going to ring CSA and get them to look into it!

[MsMummy]

Thanks ladies! Yes I went on their site and it was a bit confusing. She's told us she hasn't declared it and she doesn't have to until she's a manager... But I know she's making a fair bit on it as she keeps bragging about how she keeps getting in the top 10 demonstrators in aus or some crap and shes always giving us SD because she always has parties... so we are just going to ring CSA and get them to look into it!

I agree. Definitely look into it. Why should she be able to hide her earnings just because she runs a home business? Money is money and it should be treated equally.

[veve]

I have heard that its a hobby (but that is from a tupperware lady .. not an accountant) - I think that is why people tend to have it as a second job/ pocket money SAHM type thing???

can you please post back here when you DO find out for sure?

[AppleIsleSMum]

can you please post back here when you DO find out for sure?

Yep sure :)
Should know tomorrow, just have to get DP to sign a form so I can have access to the info & talk to CSA properly about it.

[brogeybear]

For tax purposes and declaring income purposes it *is* classed as a hobby unless you earn over some ridiculous amount like $50K.
Of course, for centrelink purposes, you have to declare everything, even things like cash in hand babysitting, mowing, etc.

[waterlily]

My friend does Tupperware and she. Has spoken to every person possible to find out and she doesn't have to claim it until she is earning over 50k (I think it is) she even has a free car. She is single and receiving full benefits from centerlink who have told her on many occasions that she does not need to report it and it will not affect her payments.

But it is always best to research it all yourself.

[veve]

For tax purposes and declaring income purposes it *is* classed as a hobby unless you earn over some ridiculous amount like $50K.
Of course, for centrelink purposes, you have to declare everything, even things like cash in hand babysitting, mowing, etc.

I think that amount is just NUTS ... hubby works an eight day fortnight and doesn't bring that amount home .. but he pays tax??? (he does get a fair bit back... but still .. it has to be processed correctly) ..

[AppleIsleSMum]

It's just plain crap that it could be classed as a hobby... If it is they need to change it... Maybe we should do a petition lol

[BorrisWombatWife]

I think its actually that you don't need your own ABN and do quarterly BAS statements for hobbies under $50k.
Any and all income still needs to be declared.
I missed $4.00 interest on a savings account once and got a grumpy gram from ATO for missing it.
Would look for an ATO or professional for confirmation.

I have a smart phone & one day I will be smart enough to use it!

[XxxxkatiexxxX]

For centrelink you need to tell them about any income. Income is income even if you only get $50 per fortnight or less. If you don't tell just think someone else may do it for.

I used to work for centrelink, I have raised a couple of debts for payed "hobbies"

[finally expecting]

There will be a certain amount (possibly the $50000 people have mentioned) before she will need an ABN. The reason they don't declare on small amounts is she can claim lots at tax time, ie car for parties and deliveries, phone calls for organizing parties, cost of promotional material Catalogues etc.

I think csa will prob tell you they're not interested unless it is taxable income, or you can apply through change of assessment which will prob take a few months and may not go in your favor.

[sam's mum]

The 50,000 was the GST registration threshold and that has now increased to 75,000. That has absolutely nothing to do with whether it is a business or a hobby. There is a series of tests to determine the difference and the link given explains them. There are a lot of people who were selling on eBay as a 'hobby' who are explaining that to the ATO right now. There is no dollar test for a hobby but the more you earn the less likely it will be a hobby.

[Crazyfamily]

i have no idea if she is suppose to declare it but i doubt it will affect how much child support you dh pays. I say report her anyway.

[catemer]

If you look
At the Tupperware site re joining as a demonstrator it says:

"As a Tupperware Demonstrator you experience the best of both worlds. All the benefits of running your own business, but with the support of a manager and peers, backed by a Company that’s got over 60 years experience in direct selling and an enviable reputation for quality products.

Consider it a business for yourself, not by yourself."

So even Tupperware themselves call it a business. The income should be declared.

[MsMummy]

I don't believe that there is a $50,000 threshold for income tax purposes. there is no way that ATO would let that level of income go. As previous posters said, I think people are mixing it up for having to register for GST.

If you are running Tupperware such that your taxable income (ie. after all the expenses) is $50,000, then I can't see how it wouldn't satisfy the criteria for a businss that I posted above. (but, of course, check with your accountant).

If people aren't declaring, then they should be reported to the ATO.