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Is it illegal to do cash in hand jobs? (Less than $400 per week)

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Answers (17)

Yes and it gets very awkward when paying for groceries in hand jobs.

 Ha ha
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 Im laughing way too much at this
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 Very Whitty hahahaha
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I work for the ATO and it is not illegal to be paid cash. However you do need to declare that income and pay tax on it weather or not it was withheld on your behalf or not. If you have questions I suggest you give them a call for a more specific response. Ph 13 28 61

I make about $500/week cleaning houses, never declared it and never got in trouble. Been doing this for 15 years

 Go you!
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 Centrelink will find you
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 This is dishonest. You should be declaring it and paying tax.
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Not necessarily, my first ever job i was paid in cash. However thats how the company paid its employees but it had taken tax out and reported everything leaglly, they were just an old couple who didnt like banks. However these days thats very unlikely , most cases you wouldnt be paying tax and therfore yes its illegal.

 thats not actually what cash in hand means. It means off the radar of the ato
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It's not illegal to pay cash in hand as long as they are still paying you after tax and providing you with a payslip and a payment summary at the end of the financial year.

If not, then yes, it's illegal and both you and your employer can be done for tax evasion. Not to mention I doubt they would be paying you super and proper award rates etc. You also aren't covered by workers comp if it's off the books.

If you receive Centrelink benefits and are not reporting this income you can be made to pay it back as well as the tax office. It's just not worth it.

I think your best option is to take some bank statements into the tax office, and go through it all with them. Just to straighten out any confusion you're having ;-)

Yes it is. If it was every now and then (as opposed to every week) and less money you can get away with it being a hobby rather than a business. But if it's regular you need an ABN and to declare and pay taxes.

Depends.... If you were cleaning getting money in the hand I wouldn't, just don't bank it.

 This is wrong, everyone else pays taxes and contributes to society. Why should this person be exempt?
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Are you for real? Get an ABN for babysitting! What a joke. You cannot get an ABN unless you earn over $75,00. Some of these idiots should check their facts before writing bullshit!

 ....yes you can!
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 Um no, you should. Anyone can get an ABN. The 75000 is for something different
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 I think 75k is when you need to start paying/charging gst
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 If you are self employed and earn 75k +, you need to invoice with gst and lodge quarterly gst payable payments to the ATO.
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 That’s hilarious telling people to get their facts right before writing bullshit.
You need an abn before you carry out any kind of business. You should not accept any payment with providing a receipt with your abn on it! (Or atleast offering a receipt... write it anyway and kept the duplicate ... you know in case you get audited at tax time)

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 I’d be mindful of calling other people idiots - particularly when you are in the wrong!!!
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I get so irrrated with people working cash and getting paid from Centerlink . And fill time people paying tax and people with cash / Centerlink are eating more .

 Where does the OP say they are on Centrelink benefits?
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 Then why are you working? Just a heads up though, at some point in your life things might go awry or just change, and you will find yourself seeking help from Centrelink. When that day comes, I hope you remember this comment your wrote and update your opinion. Anyway you are allowed to earn up to a certain amount per year that does not affect your Centrelink payment if you are on Newstart. It does affect your Family Tax A and B payments though. Do some more research sweet human being before you launch into writing comments that are not entirely true. Have a good day :)
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 I don’t receive any money from Centrelink. You’ll be pleased to know I now have a tax paying job.
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Yes it is, that fact is common knowledge, or it should be!

Just saying Newstart payments are about 270pw not 400pw

So people who babysit other people's kids should be reporting their income?

 If your doing it for cash then yes technically.
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 If it's a business, yes. If it's only occasionally then no.
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 If it's less than $100 a week I wouldn't bother. I'm not sure what the "legal" amount is though to differentiate between a hobby and a business.
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 Pftttt there is no set limit. You legally must pay tax on what you earn. If you are babysitting you should have an abn and pay the tax yourself, usually by doing your tax at the eofy and seeing if you are under the threshold.
Obviously alot of people don't do this.
You also need to take insurance into account. These days you would be likely to get sued if somethibg went wrong.

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 ^thats actually not true. Certain things are defined as a hobby and are tax exempt. BUt you need to contact the ATO to find out the rules. A hobby is things like doing an occasional cake for somebody. Doing regular work where the purpose of the work is in exchange for pay isnt a hobby
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 Oh bullshit, money passes hands legally you must have an abn. How many cake makers would claim they made an occasional cake!
Paying tax and having an abn along with insurance is common sense these days. It’s as important as a police check, blue card and cpr

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