Tag Archives: tax

ATO – 'Business Activity'

This is a quick update about one of the myTax questions that I mentioned in this post. It was one of the questions I ‘guessed’.

The question occurs in the section under PSI, or Personal Services Income, and asks for the:

‘Number of business activities’

Nowhere on the ATO website is there a definition of what ‘business activity’ actually means. Thanks to the very knowledgeable and patient lady I spoke to this morning, I can now tell you that for Sole Traders, the question refers to the number of people/companies you have worked for.

So, for example, if you work for ten different people/companies during the course of a financial year, the number of ‘business activities’ to report is…tah dah…10!

You’re welcome. 🙂

Meeks


Review – ATO's myTax

Is there such a thing as minus one? -grinds teeth-

In a nutshell, the ATO [Australian Taxation Office] website functioned quite well, and by that I mean the way the computer side of things worked. If you are familiar with the general workings of a complex website, you should be able to follow the logic fairly well. The problems arise from the content, in particular the terminology.

Any teacher will tell you that the single biggest hurdle to learning is new terminology. Not only does the student have to learn new terms specific to the subject matter, they often have to learn new meanings for familiar words and phrases used to describe very unfamiliar concepts.

The best software programs deal with the problem of terminology by having context sensitive lookups. For example, if a question is about ‘Sole Traders’, there will be a little [?] at the end that can be clicked. Clicking that lookup displays a short definition of the term.

Lookups are a great idea…if they’re executed properly, and that’s where assumptions come in. Experts have so much knowledge of their areas that they cannot put themselves in the shoes of someone who knows nothing. So many basic terms do not have lookups because… “It’s obvious, isn’t it?”

Duh no, it isn’t obvious. Not unless you’re a tax accountant.

I’m not a tax accountant. That’s why it took me well over two hours to lodge a couple of years’ worth of returns. The first was relatively easy because I was doing it as a normal person. The second was much harder because I was doing it as a ‘Sole Trader’. Basically, Sole Traders are people who work for themselves with a company name and an ABN [Australian Business Number]. Casual tutors like me often work as Sole Traders.

But all Sole Traders are not equal. Working out what variety of Sole Trader I was involved yet more terms I didn’t understand. I used every lookup, accessed Help, tried the so-called online chat help [basically just an algorithm] and even tried DuckduckGo. Despite all that, however, some of my answers were the better of two bad choices. In other words, pretty much guess work.

Surely there’s a better way?

Yes, there is. It’s called paying for a professional tax accountant.

Decades ago when I could afford the money, I actually had a tax accountant. These days I have to DIY and hope for the best.

I can’t be the only person having issues with the ATO’s myTax software because there is a real live group of volunteers who have been trained to ‘help’ with myTax! Whether they just help with the website side of things or the actual tax side I don’t know. What I do know is that myTax is a major disincentive to retirees thinking of working for themselves.

One exhausted retiree signing off.

Meeks

p.s. While I’m in a venting mood, here’s one for the Guttenberg developers – it’s really annoying when you go back to edit a paragraph and the floating toolbar covers up part of what you’ve written. This seems to happen when the paragraph is at the top of the screen area:


31 Self-publishing Tips 4 Absolute Beginners

  1. Print-On-Demand is new tech that allows books to be printed one at a time instead of in hundreds.
  2. Print-On-Demand means authors don’t have to buy 100’s of their own print books.
  3. 3 biggest Print-On-Demand printers are CreateSpace [Amazon], Lulu and IngramSpark. Amazon KDP is now offering print as well.
  4. Lulu & IngramSpark have print facilities in Australia. Both are more expensive than CreateSpace or KDP but you save a lot in postage [and time].
  5. Aussie authors wanting to print with IngramSpark must have an ABN and pay a $53 setup fee for each book.
  6. Aussie authors wanting to get an ABN should read this how to first: https://acflory.wordpress.com/2018/04/22/how-to-apply-for-an-abn-the-basics/
  7. Print-On-Demand works with standard trim sizes only. For table of trim sizes see : https://www.createspace.com/Special/Pop/book_trimsizes-pagecount.html
  8. Trim size = physical size of book after pages glued inside cover & trimmed.
  9. Page size templates for all trim sizes can be found on CreateSpace forums: https://forums.createspace.com/en/community/docs/DOC-1323
  10. Convert Word A4 pages to trim size pages via the Word Page Setup dialog box.
  11. ISBN = 13 digit no. that identifies your book worldwide.
  12. Buy your own ISBN or accept the free one offered by CreateSpace and KDP.
  13. Aussie authors can buy ISBNs from Thorpe-Bowker: https://www.myidentifiers.com.au/
  14. As a rule of thumb, print, ebook & audiobooks all need their own ISBN.
  15. Books printed via CreateSpace are listed on Amazon automatically.
  16. To publish Kindle ebooks go to: https://kdp.amazon.com/en_US/
  17. Amazon supplies ebooks with ASIN identifiers so ISBN not strictly necessary.
  18. If you want to ‘go wide’ & sell with other retailers as well as Amazon, your own ISBN is a must.
  19. Most POD printers prefer PDF files but will accept Word files.
  20. Before converting from Word to PDF, ensure all Word fonts are embedded in the document. See:  https://acflory.wordpress.com/2018/05/19/how-to-make-word-16-embed-all-your-fonts/
  21. File/Export completed Word doc. to PDF. Then upload that PDF to the POD printer of your choice. 
  22. With CreateSpace, royalty = List Price – Print costs.
  23. With CreateSpace, Print costs= Sales Channel % + Fixed Charges + Per Page Charge.
  24. With CreateSpace, Standard sales channel % = 40% of List Price, Expanded sales channel % = 60%. 
  25. Spine of cover = trim size & no. of pages. See: https://www.createspace.com/Help/Book/Artwork.do 
  26. Total page no. of book = pages AFTER conversion to chosen trim size [not A4 Word pages].
  27. Amazon deducts 30% withholding tax from each sale. Aussies can claim exemption to reduce tax to 5%.
  28. Withholding tax exemption: US TIN = Australian Tax File No.
  29. Aussie authors must deposit 1 copy of each published book with the National Library of Australia: https://www.nla.gov.au/legal-deposit
  30. Aussie authors must also deposit 1 copy of each published book with their state library: https://www.nla.gov.au/legal-deposit/australia-wide
  31. Aussie authors – for Legal Deposit FAQ see:https://www.nla.gov.au/legal-deposit-faq

 

 

 


#Amazon, US #Tax and #Australian Citizens

meeka thumbs upAnything sold on Amazon – including self-published books – is subject to a 33% withholding tax.

This is a tax that Amazon must take out of the sale before you get your share.

This tax is applicable across the board and non-US citizens are not exempt.

 

Unless………..:

  • their country of origin has a trade treaty with the US
  • and they apply for an exemption under that trade treaty

As an Australian citizen, I am lucky enough to meet the ‘trade treaty’ criterion but until today, I did not apply for the exemption because:

  • I was not making enough money for it to matter, and
  • the process was just TOO HARD

I’m not sure what changed, or when exactly, but suddenly the process of applying for an exemption is so easy I’m still pinching myself in case I’m dreaming.

So what’s needed?

  1. Your country of origin must have a trade treaty with the US
  2. You must have an account with Kindle Direct Publishing [nah..really? lol]
  3. You must have a tax file number [or equivalent] from your country of origin

Seriously, that’s it. With those three things you can log into Kindle Direct Publishing and fill in a very VERY easy online form and you’re done.

  1. Log in to your KDP account
  2. Select My Account
  3. Select the option for Tax Interview
  4. Have your tax file number handy
  5. And start filling in the questions.
  6. When you get to the page that asks if you want to do an electronic signature* – select YES
  7. The electronic signature is nothing more than your typed name, email address [same as for logging into KDP] and ‘Submit’.
  8. Be sure to print off a copy at the end and you’re done.

If you’re anything like me, you’ll sit there scratching your head and wondering how you can send an electronic signature. Is there a special program you have to invest in to create such a signature? Or do you have to print the page off, sign it manually and then post it off? Hah!

The answer to all those questions is a big, fat NO. There appears to be no valid reason for doing things the hard way, so don’t.

Having procrastinated for years, literally, I am so relieved to finally have this Sword of Damocles removed from my halo. Thank you IRS and thank you Amazon! Now if only I could be paid via PayPal or EFT I’d be delirious with happiness…

-smack- Don’t be greedy, girl!

Much happy dancing,

Meeks


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