If you are involved in the networking Industry….you need to talk to us urgently. (We have extensive experience with networks and the relevant tax rules that apply to them)
The networking industry is under fire from the ATO as there have been some significant changes made to the way tax rules apply to networking income and expenses.
It is critical that you are aware of what rules apply to your particular network.
For example with the Amway network, where you have CD’s book of the month and weekly/annual functions and the distributor income, the ATO views the threshold for being classified as a business as the direct level. This is because many people involved in Amway hada lot of expenses and little distributor income (increments of 3%), which did not cover the expenses. The resulting (quite substantial) claims were normally offset against employment income.
So there are two aspects to Networking tax;
1. A good record keeping system so that you can keep track of your income and expenses and potential tax claims.
2. Having an Accountant advise you on your record keeping requirements and prepare your tax returns who has experience in the networking industry who knows the current tax rules that specifically applies to your particular network.
Call us now on (03) 9832 0900 to book an appointment to discuss your accounting and tax needs. If you are interstate we can still look after your needs.