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!




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

 

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Kelly Clarkson shares first photos of son

Kelly Clarkson has shown off the first photos of her son, Remington Alexander Blackstock.

5 childbirth myths that need to be busted

Birth is an unpredictable, mysterious process that intrigues us all, and there is a lot of misinformation out there.

Mum of three fatally shot by toddler while driving

A US mother has been shot by her toddler while driving on a highway in Wisconsin.

All you need is one minute to work out

The seven-minute-work out is old news. Research shows the effectiveness of going hell-for-leather for just one minute.

Pregnant women needed to join diabetes study

Pregnant woman in country Australia will help Adelaide researchers figure out why cases of type 1 diabetes have doubled over the past two decades.

Just announced: the Mountain Buggy Unirider

It's the perfect solution to combat those toddler meltdowns when they no longer want to be in a pram but can't walk long distances.

Authorities euthanise dog that fatally bit a newborn baby

A pit bull mix that fatally bit a 3-day-old infant last week has been euthanised, authorities said.

The push for Medicare to fund lactation consultants

While meeting with a lactation consultant can make an enormous difference to a new mother, it's not a service that is available through the public health system.

Why it's perfectly natural to dislike other people's children

Members of a popular forum are fiercely debating whether it is acceptable to dislike a friend's child.

Woman gives birth on plane, names baby after airline

A pregnant woman who unexpectedly gave birth on a flight has named her new baby after the airline, Jetstar.

Heartwarming photos show the joy of adoption after foster care

Children living in foster care can feel like their future is less than clear. But that uncertainty disappears the day they are adopted by their "forever family" 

'Oh my god, it's a baby!' Mum shocked to give birth

When the cramps started to kick in, Klara Dollan just assumed a painful period was starting.

Mum's Facebook plea: 'Help me find my daughter's father'

Kerryn has a unusual present planned for daughter Imi's 13th birthday celebrations - she hopes to be able to be able to give the soon-to-be the teenager her first ever photo of her dad.

Is it possible for your house to be too clean?

Our houses are cleaner than ever before. But how clean is too clean? Could a sterile home be putting your family's health at risk?

Millions of Monkeys: puzzles that grow with your toddler

Here's a puzzle that grows with them; the Puzzle Grow Pack by Millions of Monkeys.

Baby names from Britpop

If you grew up in the 90s you might want to look to the genre of Britpop music for baby name inspiration.

What to eat and drink when you have gastro

When you catch a bug that causes acute infectious gastroenteritis (gastro), your stomach and intestinal tract become inflamed, causing diarrhoea, nausea, vomiting, abdominal cramping and pain. The last thing you probably feel like doing is eating.

'To this day, I owe her my life'

Would I have survived if I hadn't crossed that street?

Why baby Sonny needs you to vaccinate your children

Caitlin is a firm believer in the importance of immunisation to protect children from harmful and deadly diseases.

Five-year-old's photo captures beauty of motherhood

There is no make-up or special outfits and hairdos, but the five-year-old boy who took this picture captured the essence of motherhood as well as any professional photographer.

Babies know whether you are naughty or nice

Studies have shown that infants in the first months of life try to avoid dealing with social wrongdoers - for example, sharing less with them and helping them less - and they expect others to, too.

 
Advertisement
 

Top 5 Articles

Advertisement
 
 
 

What's hot on EB

The babies who are one in 70 million

Bethani Webb was excited to find out she was pregnant, but the first time mum did not realise she was carrying four babies not one.

Exclusive Black Friday Sale!

Get over 40% off selected products, including prams, baby carriers, cloth nappies, sleeping bags and much more! 24 hours only, on May 6 - register now for your special code.

Cafe offers breastfeeding mums a free cup of tea

A Sydney cafe is offering breastfeeding mums free cups of tea in a bid to show support for the right of women to nurse their babies wherever they choose.

To snip or not to snip? When the decision is not clear cut

Jamie Oliver, who considered a vasectomy, is to be a father again. A fellow dad reflects on his own decision 11 years ago

Doctors stunned by rare twins born almost six weeks apart

To everyone's surprise, Kristen Miller "kept doing better each day", keeping her second baby safe.

Baby book ideas for modern parents

Before my son was born I was given a lovely baby book full of blank pages waiting to be filled with weights and heights and first words.

The adorable smile of a baby seeing his mum clearly for the first time

There is no doubt seeing their child smile for the first time is an unforgettable moment for parents everywhere.

Mum tells how toddler 'nearly hung himself' in cot mishap

When Alison Johnson put her 18-month-old Caleb down for a nap, she had no reason to believe her son was in any danger.

Babies are still switched at birth? Yes, it can happen

All my panic and tears aside, my biggest question looking back is about the kind of security measures used in the maternity ward.

Doctors slammed for taking selfie with newborn

Everyone who visits a mum in hospital in the days following childbirth wants to get a photo with the new baby.

ergoPouch Twosie Sleepsuit for winter breastfeeding

Finally, there's a way to keep warm while breastfeeding through winter.

Health check: How long does sex 'normally' last?

What to do with this information? My advice would be to try not to think about it during the throes of passion.

When breastfeeding sucks: fixing common problems

From niplash to tight boobs, biting to milk supply issues, Pinky McKay looks at common breastfeeding issues and how to solve them.

10 things I've learnt in my first six months with twins

Six months on we're all still alive, and the more we get to know each other the easier the days become.

Mum's loving kiss leaves baby fighting for life

Kirsty Carrington thought nothing of giving her newborn son a kiss, little did she know it would leave the baby fighting for life.

When doing chores is your new 'me time'

After children, 'me time' looks a little different.

Get going: 14 travel strollers for families on the move

A stroller can make or break travelling with a baby or toddler. Here are 15 great single travel stroller options.

10 ways toddlers are terrific

It always pays to remind yourself of how terrific toddlers can be - they're little like this for such a short time

 

ENTER NOW

Do your kids love bananas?

This is the comp for you! We have $800 worth of Myer gift cards and boxes of Australian Bananas to be won. Entry is simple: just post a pic of your little one enjoying a banana in the comments of the FB post to enter.

 
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.