Any Australian Affiliate Marketers Paying Tax?

Discussion in 'Business & Tax Advice' started by xplosiv, Jul 10, 2016.

  1. xplosiv

    xplosiv Power Member

    Oct 18, 2014
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    So over the last few months, my income has grown quite substantially through affiliate marketing. I now make close to what I would working a full time job, less benefits and security that comes with having a 9-5... ah the freedom.

    Anyway, I am still quite confused about how it all works. I currently get paid mainly through Paypal, and one major account is a direct deposit through shareasale. It confuses me on what exactly I need to pay tax on - gross income, income after expenses, and speaking of which, how are my expenses calculated and what proof do I provide for that? For example, if I buy an SEO package?

    I wish the government didn't have to stick their hands in my cookie jar in the first place, but one of the main reasons I am doing this is to be able to apply for a home loan with as little hassle as possible, and having tax returns to substantiate your income is one of the ways to do this.

    My bank also allows people to apply with a "business activity statement", which supposedly makes the process easier for self employed people. I haven't taken a look at this form though so maybe I am missing something obvious here.

    If anyone has advice on this I would highly appreciate it. I will be talking to an accountant next month to see if I can figure out how to do this.
  2. TheNumbersGuy

    TheNumbersGuy Junior Member

    Jul 14, 2016
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    IM Fluent Accountant
    Vancouver, Canada
    First of all Congrats on your success so far.

    Taxes are calculated based on your net income (revenues-expenses), expenses are any costs related to the operation of your company. So if you were to buy an SEO package that would be an expense and it would be deducted against your revenues, thus reducing the amount taxes you would have to pay.

    Could you elaborate on the "business activity statement" (never heard of this before) & what country do you live in/operate this business in?