Jump to content

Calling all Accountants! I have a question about earning money from an overseas source


  • Please log in to reply
13 replies to this topic

#1 me_n_my_kidz

Posted 12 February 2013 - 11:14 AM

Hopefully this will get found here - I have started to earn a decent amount of revenue for books that I am selling via kindle/kobo/nook stores.

I understand that I have to fill out the forms to activate the tax treaty between Australia and the US but what I'm wondering is - should I set up an ABN under my author name so that I can claim all of the business expenses that come with publishing an ebook?

I pay for cover design, editing, print proofs, blog tours as well as prizes for giveaways to promote my books.

Does anyone have any insight for me? I'm not quite earning enough to pay an accountant to do all of this for me but if someone could point me in the right direction - that would be fantastic!

TIA!!!

#2 Acidulous Osprey

Posted 12 February 2013 - 01:04 PM

Yes you can apply for an ABN without involving an accountant.  The BAS for an author is fairly simple, it really does not need you to pay for an accountant.

#3 me_n_my_kidz

Posted 12 February 2013 - 03:23 PM

Even though my money comes from an overseas source?

#4 PrincessPeach

Posted 12 February 2013 - 03:27 PM

Getting an ABN is different to registering for GST.

When you apply for your ABN do not register for GST unless your income is going to be greater than $75,000. It will mean a little less paperwork each year.

Link to apply for an ABN:

https://abr.gov.au/ABRWeb/Apply/Abn/Importa...pid=71&js=1

Make sure you have your TFN handy!

Also, even though your income is sourced from O/S, you still have to include this in your Australian Income (I assume you are an Australian citizen & currently reside in Australia).

Edited by PrincessPeach, 12 February 2013 - 03:31 PM.


#5 Acidulous Osprey

Posted 12 February 2013 - 03:49 PM

Not registering for GST also means not claiming the GST though.  As authors we are registered for GST and the amount of paperwork is negligible compared to the money we get back.  Probably not worth it if you are paying for an accountant to prepare it though.

#6 Sassy Dingo

Posted 12 February 2013 - 04:17 PM

I think you need some specialist advise OP.

Authors, actors, sportspeople and the like have special provisions in the taxation legislation as 'special professionals'. Due to the nature of their work (earn a heap one year and nothing for the next few years) they can access nifty things like income averaging.

If you do go to a tax agent, give them a ring first and ask if they have experience with this - most accountants will very rarely come across it.

Here is some ATO information on special professionals including how to do income averaging:

http://www.ato.gov.au/content/00313590.htm

#7 Acidulous Osprey

Posted 12 February 2013 - 04:23 PM

It's in the tax forms so, no, you don't need a specialist accountant to access the provisions.  They are really only useful for an author when you have a windfall year where your novel is optioned for film.

As we are still waiting for this, we don't do the averaging.  We were told by our accountant that if it looks like a windfall is coming, talk to them then.

Overseas income, we just put it in when etax asks us to.

I'm not arguing against paying for an accountant if you are earning serious serious money.  It's just not necessary if you are not turning over a lot of money--we were no better off using an accountant.

There's probably excellent info available from the ASA.  If you are not already a member, you probably should be.

#8 me_n_my_kidz

Posted 12 February 2013 - 05:42 PM

Thank you all for your info!


So I'm gathering that I set up an ABN and then any money that's left over after my costs come out is income that I declare on my personal tax return?

Balzac - I looked but I can't find any info on the ASA website relating to this.

#9 Acidulous Osprey

Posted 12 February 2013 - 07:23 PM

Nooooooooooooooooooooooooooooo.

NOOOOOOOOOOOOOOOOOOOOOOOOOOOO.

You need to go and talk to an accountant wink.gif, it is more complicated than that.

GST is done separately to your personal income tax.

#10 me_n_my_kidz

Posted 12 February 2013 - 07:45 PM

lol ok, I'll have to do that

#11 PrincessPeach

Posted 13 February 2013 - 04:50 PM

Sort of.

All of the income is declared on your tax return & all of your expenses.

But find an accountant who does know the special rules, it is a very specialised field & I'd hesitate to say you might need to look for a bigger firm rather than a smaller one. Also a good accountant will tell you if they don't know that legislation - we don't all know everything.

#12 Acidulous Osprey

Posted 13 February 2013 - 05:39 PM

I'm going to say it again wink.gif.  If you are not in the big leagues, it's really not worth paying the big money for the specialised accountants.  If you are turning over the kind of money most Australian authors turn over, you're not going to need the tax spreading options and the expenses and rebates can be done by your average accountant using etax.  Writing in the genre you are writing in, you are not going to be up for writing grants, you're a self publisher so royalties and advances are not an issue.

It's no different to any other small business.  There's no magic that a very expensive specialised accountant can offer.

#13 blackcat20

Posted 13 February 2013 - 05:45 PM

QUOTE (me_n_my_kidz @ 12/02/2013, 06:42 PM) <{POST_SNAPBACK}>
Thank you all for your info!


So I'm gathering that I set up an ABN and then any money that's left over after my costs come out is income that I declare on my personal tax return?


Nope. There is a section of etax that you fill in. Income, expenses etc. it works out your income for you. It isn't too complicated once you get into it.

#14 me_n_my_kidz

Posted 16 February 2013 - 01:30 PM

Ok, thanks!




1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users

 

What you need to know about pregnancy and health insurance

It's not just waiting periods that couples need to consider - there are other factors to consider when thinking about health insurance.

Yummy mummy

Nicole Trunfio breastfeeds baby on Elle magazine cover

Australian model Nicole Trunfio has taken the concept of multitasking to a fashionable new level for Elle Australia.

Warnings after baby girl died while sleeping in bouncer

Parents have been warned about the dangers of letting babies sleep in bouncers and swings following the death of a three-month-old girl.

Coping with fatigue as a parent

Sleep deprivation is a real hazard of caring for a baby. But there are ways to manage the challenges of fatigue better.

A very 21st century issue: parents, parks and smart phones

It's not all the parents, and it's not all the time, but there is often at least one doing it. And sometimes, that 'one' is me.

Appliances

Faulty washing machines linked to house fires

More than 80,000 faulty Samsung washing machines pose a fire threat in homes throughout Australia despite a nationwide recall of the machines.

'I had a lotus birth and I loved it'

Lotus birthing is not all that common, but for a number of women it feels like the most natural thing to do.

7 things you might not know about postnatal depression

Despite its widespread nature, there is still a great amount of mystery surrounding PND - and it's important to try unravelling as much of that as we can.

Is your family's car part of the world's biggest safety recall?

More than 50 million vehicles recalled for potentially lethal airbag fault - is your car affected?

Why drinking water can be deadly for babies

H2O is one of the necessities of life, but for babies a seemingly harmless amount of water can be fatal.

Mother-in-law faceplants during proposal

He had it all planned: a romantic proposal on a windswept beach. The whole family would be there so they'd all be able to celebrate the joyous moment together.

A preschooler suddenly goes mute - and it's not just shyness

When our son stopped talking, our sense of loss was painful and acute.

The mums who ask for a 'wife bonus'

They run their homes like domestic CEOs and work tirelessly to improve their family's social standing. And now, according to a new book, they want an annual perk from their husbands.

Woman shares photo of dimple on breast to warn others of cancer risk

A widely-shared Facebook photograph of a British woman's breast has raised awareness of a more subtle breast cancer symptom.

Starting a family despite a low sperm count

"I'd never really failed a test - how could I fail this particularly manly test?"

It's official: we must better protect our kids from toxic lead exposure

New guidelines have been released, aimed at reducing children's harmful exposure to lead. But they still don't go far enough.

Trouble-shooting toddler social skills

Chances are your toddler's behaviour is all completely normal - but here's how to tackle some common social problems.

Helping your first-born welcome a sibling

We did sigh with joy at the arrival of a royal princess - but, mostly, we sighed with pity at the sight of Prince George being taken to meet her.

Farewell, daytime nap

I've been in denial and I'm not too proud to beg, but it appears I must accept the fact that you have gone. I need to let you go.

The identical triplets who are one in 50 million

The father of identical triplets born in a Texas hospital says his three daughters, including conjoined twins, are "a miracle" sent by God.

Seven questions you should be asking about your health cover

If the last time you assessed your health cover was five years ago, there?s a chance it may no longer suit your needs. To ensure it?s still right for your family, click here for seven questions to ask.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

How to use gas effectively in labour

Many women in labour don't use gas effectively and suffer more side effects than benefits. Here's how to get the most out of this pain relief option.

'He has gastro but that's okay, right?': sick kid etiquette

We cannot place all children who are sick in a bubble till they recover, but we can give other parents a choice about exposing their kids to them.

Ada Nicodemou: 'I can never be completely happy again'

Home and Away actress Ada Nicodemou has opened up about the loss of her stillborn baby.

10 things to consider when you're thinking about trying for a baby

Before you start tracking your menstrual cycle and reading up on the best positions to get pregnant, there are a few other things you may want to consider.

How special surgery and IVF can create a post-vasectomy baby

Cricket legend Glenn McGrath and his second wife Sara are expecting their first child together, thanks to IVF and a delicate surgical sperm retrieval process that helped the couple to conceive.

Belle Gibson's mother 'disgusted and embarrassed'

The mother of disgraced wellness blogger Belle Gibson has accused her daughter of lying about her childhood in an attempt to garner public sympathy.

Doctor's mobile phone 'left inside c-section mum'

A new mum claims a doctor left his mobile phone inside her after delivering her baby via caesarean section.

I'm a mum and I'm following my dreams

I want my kids to know that no matter what happens in life, you can still be who it is that you've always wanted to be.

Those first daycare days

I had this innate 'mum' moment the other day.

'If one person had listened, my life would have been so different'

Katherine's father will die in prison for the horrifying sexual abuse of his daughter. Yet she is the one with the true life sentence.

This new plan undermines breastfeeding and baby health at everyone's expense

Mothers, babies, the health system and the wider society are going to pay the price of this new budget.

Couple to celebrate terminally ill baby's birthday in unique way

Baby Jai Bishop has lived at Starship Hospital for the past seven months, with his parents flying back and forth from Hokitika, 1100km away, to be by his side.

Life On Mars

It's men who need 'retraining', not women

We are all responsible for our own behaviour. Telling victims to harden up is wrong.

Baby Gammy's dad tries to claim charity money

The biological father of baby Gammy has reportedly tried to access charity money raised for the little boy's medical costs.

Where are the childcare places?

It?s all very well to encourage women to work if they choose to, but how can the measures lead to increased workforce participation when women are once again left holding the baby?

The pain of not having babies and not knowing why

After seven years of wishing, hoping, crying, punching pillows and shouting "why me?!", the end result is more than I ever thought possible.

Getting your family finances in order

Whether you're after a new car for a growing family, a bigger house, or are just fixing up your finances, here are the basics on borrowing.

Mum shares graphic selfie to warn against tanning

A mum has shared a graphic photo of her skin cancer treatment as a warning to others.

Does parenthood make us happier?

We can certainly gain higher levels of happiness when we become parents, but the trick is to not get overwhelmed by the pressures of raising our kids.

No, having a dog is not like having a human child

It's obvious these people dote on their pets, but they're barking up the wrong tree.

 

Top baby names

Baby Names

The numbers are in and we can now bring you the 2014 top baby name list for Australia.

 
Advertisement
 
 
Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.