How do I tell whether I am in business?

There is no simple answer to whether you are in business or not, it depends upon the facts in each case. However, you can use the following questions to help you determine whether your activity is actually a business:

• Does your activity have a significant commercial purpose or character?
• Do you have more than just an intention to engage in business?
• Do you have a purpose of profit as well as a prospect of profit?
• Is there repetition and regularity to your activity?
• Is your activity carried on in a similar manner to other businesses in your industry?
• Is your activity planned, organised and carried on in a business-like manner?
• Does your activity have characteristics of size, scale and permanency?
• Would it be true to say your activity is really better described as a business, rather than a hobby, recreation or sporting activity?

Each time you answered ‘yes’ to the questions above, it increases the probability that you are in business though no one indicator is decisive, they must be considered in combination and as a whole.

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Arguably my Automobile is Awash with Alliteration - Subaru Sti S202

A mate wouldn't charge

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TD06 - Oink.

Well then, I guess he is a business. But for everyone here who has a second/third job, if you were to do private jobs (as most private jobs, people prefer cash jobs - tradies, mechs, etc) would you be an angel and tell the tax dept how much you really made? Or would you slip that into your pockets?

Completely different scenario. For a start off $100 is a long way under the amount you need to earn before declaring tax or GST.

Again there is a difference between taking $100 from a mate to put some brake pads in his car and taking $100 every single day for a repetition of tasks earning a substantial amount above the point he should have declared his income.
If this was something he was doing because he enjoys it and is just puttng his hard earned skills to good use then I'm sure he would not mind reducing his fee's to the point he earns below the tax threshold for a 2nd income.

What you...sorry your mate...is doing is down right illegal and I sincerely hope the ATO catches up with him. Why should he not have to pay tax when the rest of us do?

Get a second job then find out if you like being taxed a shitload mate.

Again, I'm NOT the one that is doing this.. sif I have the time, im a girl, 19, a full time student, and parttime/casual video ezy in Joondanna, how am I suppose to keep up making this for a living.

He does pay his taxes, not on his second job, i guess majority of tradies are doing it illegal as they prefer doing cash jobs - even though some of them write a reciept, of course they write it down lower than what you actually pay them.

Oh wells. i guess all the tradies are lined up to catch up with the ATO as well.

haha shouldnt have said you're a girl, this thread may get seedier :P

one thing you might suggest to him - invest the money? Or buy heaps of gift vouchers :P

Tax is a fact of life. You will be taxed more per pay being a second job, but it will be corrected at the end of the taxation year.

By collecting a large amount of regular cash jobs all they are doing is screwing everyone else. $24k per year cash is a fuck load of money to have as a 'little bonus'. It's not a $100 to help someone out (i.e. a gift). This is a business and if they are caught (good probability they will) they will face massive tax bills and whinge on Today Tonight.

Want the risk of being caught. Don't declare it.

Want to sleep at night knowing everything is fine. Declare it.

As has been said a lot of very powerful and savvy people are in jail for tax avoidance. This is nothing different.

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[COLOR="Gray"]550Nm off a 2L... Just wish it was in the dak dak...[/COLOR]

I thought having wrx_baby is somewhat more of a girls nickname rather then a guy having it, oh wells.

forgot to mention, i've never seen a girl car detail and car tint for extra money..lol doesn't fit into the stereotype now does it.lol

you could be wrong, i don't see how car detailing doesn't fit into the stereotype there is a girl across my workplace from me who details cars so yeah.

Not being sexist tho, detailing is just like cleaning amirite?