Cash deposits at bank

Discussion in 'Finance & Banking' started by luke83, 5th Aug, 2018.

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  1. luke83

    luke83 Active Member

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    25th Apr, 2018
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    Location:
    Hunter Valley
    So I earn a little extra money on the side by breeding dogs, if I go into the bank an deposit the $5000 are they going to intricate me over where its from. Most likely will make 10k to 15k each year once my new girls are at breeding stage, want to know if I will set off any red flags . Didn't know where else to ask this question ?

    In the past I have just spent the money on things around the home but now I just bought a new kia and ticked it up on my mortgage and want to pay it back off asap.
     
  2. twisted strategies

    twisted strategies Well-Known Member

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    Location:
    QLD
    the government is addicted to over-spending but desperate not to explode their balance sheet

    TAKE CARE

    they ( the government ) need more money NOW and the taxation act defies all Australian legacy laws ( aka the Westminster system )

    you might have to spend a fair while reading the tax act just to assess whether it is a hobby , business profit or capital gains ( and which taxes apply ).
     
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  3. Simon Hampel

    Simon Hampel Founder Staff Member

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    9th Jun, 2005
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    Location:
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    Are you actually running a business?

    Do you do things in a business-like manner?

    Do you keep full records of all income and expenses?

    Do you claim any of your expenses as deductions against your income?

    Do you actually make a profit after all your expenses?

    If not, I'd suggest you are likely just running a hobby.

    Some more information:

    Business or hobby?

    Key questions to consider:
    • Is the activity being undertaken for commercial reasons?
    • Is your main intention, purpose or prospect to make a profit?
    • Do you regularly and repeatedly undertake your activity?
    • Is your activity planned, organised and carried out in a businesslike manner?
    If you answered yes to most of these questions, you're likely to be running a business, although it depends on your individual circumstances. The ATO website provides further questions, information and examples to help you understand the differences between a hobby and a business.
    ATO: Are you in business?
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Location:
    Australia wide
    All deposits are recorded on a database called 'austrac' and the bank teller can flag suspicious transactions such as someone depositing large sums of cash, especially just under the $10k reporting limit. So you could be flagged.

    But so what? Are you doing anything illegal? Are you declaring the income?

    Certain staff of the ATO have access to Austrac and will get these suspicious transaction reports. They may make preliminary checks which may lead to more deeper investigations.
     
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  5. luke83

    luke83 Active Member

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    25th Apr, 2018
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    Location:
    Hunter Valley
    Sounds like I should be right then, thanks everyone.
     
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