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How do I prove to Centrelink I am setting up a business?


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18 replies to this topic

#1 newmumma11

Posted 08 February 2016 - 02:16 PM

Please help. I have that sense of bubbling psycho anger verging on crazy-lady rage that only comes when dealing with Centrelink.
I just tried to call them but it took all my credit and hung up.
My issue is I am receiving the Child Care Benefit (CCB) and believe I should also be receiving the Child Care Rebate (CCR). I have been working solidly in every spare minute I get while raising my baby alone (partner overseas) to set up an eBay business.
Nowhere on the CCB/CCR application is there a place to satisfy the eligibility criteria (working/studying/setting up a business etc).

Also, I have not declared the items I have sold yet, as I am not even making ends meet yet.

How do I get the CCR?

I have every intention of declaring once I am on my feet. No lectures, NOT IN THE MOOD.
Thanks :)

#2 Sassy Dingo

Posted 08 February 2016 - 02:24 PM

Surely evidence of an ABN would suffice? Sales history through ebay?

#3 DanceMom

Posted 08 February 2016 - 02:32 PM

https://www.humanser...ild-care-rebate

You need to contact Centrelink with details of your business, ABN etc. Once you do this you will also need to start declaring any income you earn with them.

#4 tothebeach

Posted 08 February 2016 - 02:39 PM

Wouldn't it just come under working?  It's a few years ago for me, but I had no trouble receiving CCR running my own business.  

My business was a PTY LTD with an ABN and a tax file number.  I was also registered for GST.  

Though to be honest, I think that there was nothing that I needed to show, I just ticked the working box.

#5 HRH Countrymel

Posted 08 February 2016 - 02:41 PM

There is a massive 20 something page document you need to fill out to prove your business is an actual business to Centerlink.

You need to go in there and ask for it. (sorry)

It also needs to be turning a profit which you are declaring.

Anyone can get an ABN - that counts for diddly squat.

#6 Weavile

Posted 08 February 2016 - 02:46 PM

For Child Care Rebate they don't ask you to provide proof that you are doing a complying activity, it seems to be the only benefit where they take your word for it. If you were audited or asked to provide proof I believe sales records would work.

For other claims the form listed above would be required.

#7 AsperHacker

Posted 08 February 2016 - 02:47 PM

View PostHRH Countrymel, on 08 February 2016 - 02:41 PM, said:

There is a massive 20 something page document you need to fill out to prove your business is an actual business to Centerlink.

You need to go in there and ask for it. (sorry)

It also needs to be turning a profit which you are declaring.

Anyone can get an ABN - that counts for diddly squat.

You don't actually have to go in... assuming you can get someone to answer the phone! I had mine sent out by mail.

#8 JJ

Posted 08 February 2016 - 08:12 PM

You can download the form from the DHS website. It's called a Mod F - business details (at least that's the one I filled in), for sole traders or partnerships: https://www.humanser...mer/forms/mod-f

Once you declare that you are running a business, you will probably also have to provide regular Profit & Loss statements - I do mine quarterly, but depending on your payments (especially if you get Parenting Payment or Newstart or similar) you may have to do them more frequently. You don't need to be making a profit, but you need to declare both your earnings and your business-related expenses.

Edited to add disclaimer - I don't receive CCB or CCR, so I don't know about the specific requirements for those payments - the above is just the general "declaring business to Centrelink" process.

Edited by JJ, 08 February 2016 - 08:24 PM.


#9 JJ

Posted 08 February 2016 - 08:25 PM

View PostFresh Start, on 08 February 2016 - 08:23 PM, said:

This is for income support payments - Newstart, Parenting, Disability Support, Age etc NOT CCB/CCR.

Snap - I just added my last paragraph while you posted. :)

#10 wombats

Posted 08 February 2016 - 08:42 PM

Are you sure you are receiving CCB and not CCR?  Or is it the other way around?

#11 jossy

Posted 08 February 2016 - 08:47 PM

So you apply for CCB online.  CCR is not a seperate application.  Once the CCB has been granted then you are automatically assessed for CCR.  Providing you have ticked the yes to the work/study/training test it is automatically granted.  If for some reason it's not worked then you can update it via online services in the Child Care section.  Your partner is exempt from the test because he's overseas and you're meeting the test because you're setting up a business - no minimum number of hours are required.  Providing it is just CCB/CCR you're applying for there's no forms required, it's all done online.

#12 newmumma11

Posted 09 February 2016 - 12:59 PM

Thanks everybody for taking the time to respond.

I'm receiving Parenting Payment, and yes I'm receiving the CCB, have ticked the 'yes I'm working/studying/setting up a business' box, but have still not received it and received no mention of it in the letter from Centrelink about the CCB.

Thanks for the info re the Profit and Loss Statement. I have no idea how I would link my eBay sales/PayPal account to an ABN, I suppose I need to get reading!

Any tips appreciated, if anyone has time. Thanks so much for your responses.

#13 Chocolate Addict

Posted 09 February 2016 - 01:11 PM

Quote

Thanks for the info re the Profit and Loss Statement. I have no idea how I would link my eBay sales/PayPal account to an ABN, I suppose I need to get reading!

You can have an ABN under your own name then just put the abn on all your invoices from sales on ebay.



Or set up an ABN in the business name and again put that on the invoices.

I would also set up a separate/business bank account to keep track of the business income/expenses.

Edited by Chocolate Addict, 09 February 2016 - 01:11 PM.


#14 newmumma11

Posted 09 February 2016 - 01:43 PM

View PostChocolate Addict, on 09 February 2016 - 01:11 PM, said:

You can have an ABN under your own name then just put the abn on all your invoices from sales on ebay.


Or set up an ABN in the business name and again put that on the invoices.
I would also set up a separate/business bank account to keep track of the business income/expenses.


Thanks, great idea. Do you know if the income into the bank account for the business would count as income to Centrelink? I mean...how does one work out exactly what their profit is??? I suppose I need to sit down and figure out exactly what my profit is. I'll need business advice. Does anyone know of anyone that gives free business advice? Or should I just continue to ask questions on here?

#15 hills mum bec

Posted 09 February 2016 - 01:49 PM

Your profit is your income minus any costs that are spent earning that income.  If you are selling on ebay then your income is your sales and your costs would include ebay fees, paypal fees, the cost of the product you are selling, postage, packaging etc.

#16 pumpkin-pie

Posted 09 February 2016 - 02:16 PM

CCR can be paid quarterly or even annually. Depends which box you ticked

#17 JJ

Posted 09 February 2016 - 04:39 PM

View Postnewmumma11, on 09 February 2016 - 01:43 PM, said:

Thanks, great idea. Do you know if the income into the bank account for the business would count as income to Centrelink? I mean...how does one work out exactly what their profit is??? I suppose I need to sit down and figure out exactly what my profit is. I'll need business advice. Does anyone know of anyone that gives free business advice? Or should I just continue to ask questions on here?

My advice would be to make an appointment with an accountant and get them to walk you through the steps of getting an ABN (they may even be able to do it for you), how to calculate profit/loss, what deductions you can make and how to deal with the forms. I had a lot of anxiety about the forms and inadvertently doing the wrong thing in Centrelink's eyes, and my accountant was so helpful with it all.

It does cost a little bit of money, but I found it was money well spent (and you can deduct it as an expense, too! :D). Best of luck! x

Edited by JJ, 09 February 2016 - 04:39 PM.


#18 a letter to Elise.

Posted 09 February 2016 - 04:46 PM

I didn't have to provide any proof. I just told them over the phone.

#19 newmumma11

Posted 10 February 2016 - 02:09 PM

Thank you so much for your replies, really appreciate the time you've taken!




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