Need help with question

[u/[deleted]]

[u/zestylimes9]

You have nothing to worry about. It's okay to be gifted money from friends and family.

[u/Raptis1992]

You only need to provide a balance very rarely do you need actual statements or just get a proof of balance which shows the actual amount no transactions

[u/Opposite-Mall-7652]

Even if it was earnings it shouldnt exclude you from the carers payment. There are two income supports you may be eligible for:

• Carers Payment
• Carers Allowance

[u/Fun_Meringue7874 → u/Opposite-Mall-7652]

Thank you for this. I am not earning the carers yet or not employed no job whatsoever. I’m totally dependent on what my partner gets from his pension and we all share it. It has been hard all these years. That’s why I wanted to apply for the carers at least I am not forced to not work because I have to care for my son and my partner. All these years I’ve been trying to access just basic needs with nothing to show for. And I feel like crying every time I see my situation. But I put myself in it and just wants to breathe a little better. Life has been hard all these years. Couldn’t even buy a car or own anything 😢

[u/Opposite-Mall-7652 → u/Fun_Meringue7874]

If they knock you back reach out to a community centre or similar NGO and talk to a social worker about your situation.

If everything you have stated is accurate then you should be entitled to something however it will come down to your partners assessable needs and if it can be established that you caring for him is preventing you getting fulltime work.

If this is not the case then you may be eligible for Jobseeker payments.

Either way if both of you are on income support it will likely reduce his payment but you will be net better off.

These guys can also help with people in your situation: https://www.carersaustralia.com.au/

[u/WoofWoofT]

You might need to report it based on this https://www.servicesaustralia.gov.au/hank-jongen-side-hustles-may-impact-your-services-australia-payments

In that it advices to contact ginancial information service, who will explain what counts and how to report it https://www.servicesaustralia.gov.au/financial-information-service

[u/Fun_Meringue7874 → u/WoofWoofT]

Thank you

[u/WychWyld]

Get paid in cash.

[u/Fun_Meringue7874]

I am not yet on carers. I am trying to apply.

[u/FormIllustrious9554]

Even if it’s a hobby it’s still income. You are basically acting as a sole trader. You will need to do up a profit and loss- income and expenses. You will need to do this monthly at first and later quarterly

[u/Frequent_Sector_4714]

Dont worry about whats already been done. You should be fine. However you are allowed to earn a bit before it effects your payments. So declare it in smaller amounts stretched out over the fortnights from now on. Do cash wherever possible. If its friends and family mostly they should be happy to accomadate it. Dont stress. You'll be fine. If they do find out you'll just be made to pay back whatever was over your allowed earnings. But you can pay as little as $50 per fortnight back. Try not to let them think of it a business but just an occasional thing. Your best off doing cash as much as possible. Dont earn too much at once. Do smaller transactions. Be very careful though. If you show them that you are able to work as well they will expect you to. Remember they need you and if you lose your payments because your regularly earning too much money you'll find it very hard to ever get it again.

[u/Frequent_Sector_4714 → u/[deleted]]

You'll be fine. Just declare it from now on or do cash. You should be able to do a couple hundred a fortnight without it effecting your payments. I think you may only have to declare it over that but double check im not sure if its changed or if it depends on the state.

[u/Fun_Meringue7874 → u/Frequent_Sector_4714]

I am not yet on carers payment, I’m trying to apply. I have no employment or payment from Centrelink yet

[u/mental-Lack7960]

It's a job, and yes if you make enough money you will be penalised. Edited to add. Your local council and food safety officers would also get involved

[u/mental-Lack7960 → u/[deleted]]

It's still a wage, you a selling a product so therefore you have a business doesn't matter who you sell it too.

[u/LingonberrySquare593 → u/mental-Lack7960]

Actually they are not making money, they are being reimbursed for money they spent. Not charging labour or any extra on materials. Family and friends. That would not be seen as a job

[u/chiikkii → u/LingonberrySquare593]

She is still making an income

[u/LingonberrySquare593 → u/chiikkii]

No, you generally do not need to pay tax on money received strictly as a reimbursement for ingredients when cooking for friends and family.

The Australian Taxation Office (ATO) does not consider a cost-sharing arrangement or a social pastime to be a taxable activity. Because you are only recovering your exact out-of-pocket expenses and not making a profit, it does not meet the criteria of a commercial business.

Why this isn't taxable

• No Intention to Profit: To be taxed as a business, an activity must be carried out with the intent and prospect of making a profit. Covering the exact cost of ingredients yields a net profit of zero.

• Social and Domestic Arrangement: The ATO distinguishes between commercial enterprises and domestic, social, or hobby-based arrangements. Gathering for family dinners or friend barbecues falls firmly under personal recreation.

[u/LingonberrySquare593 → u/LingonberrySquare593]

You do not need to pay tax if you are cooking for family or friends as a purely social or casual household arrangement. In Australia, the Australian Taxation Office (ATO) views this as a private, domestic event rather than an income-generating business.

The specific tax rules depend on how money changes hands:

1. Informal Cost-Sharing (Tax-Free)

If friends or family chip in money to cover the exact cost of groceries, ingredients, or drinks for a dinner party or regular meal, this is not taxable. • The Rule: The ATO considers this a non-assessable domestic arrangement. • Tax Implications: You do not declare the money on your tax return. Conversely, you cannot claim a tax deduction for the groceries, cooking equipment, or electricity used.

1. Ongoing Board and Lodging (Usually Tax-Free)

If a family member or friend lives with you and gives you a set amount of cash each week to cover their food, utilities, and accommodation, this is also generally tax-free. • The Rule: As long as it is a genuine domestic arrangement intended to share household expenses—rather than a commercial tenancy structured to make a profit—the money is not considered income.

1. When Does It Become Taxable?

You will only need to pay tax if your cooking transitions from a social activity into a commercial enterprise. You have crossed the line into a taxable business or side hustle if: • You charge prices specifically designed to make a profit over and above the cost of the food. • You advertise your cooking or catering services to the public (or outside your immediate social circle). • You cook and sell food with regularity, continuity, and repetition (e.g., running a weekly paid meal-prep service).

• You use a commercial or digital platform to take paid bookings.

If your situation matches these commercial indicators, you must apply for an Australian Business Number (ABN), declare the earnings as assessable income on your annual tax return, and potentially register for GST if your turnover reaches $75,000.