No. Although Centrelink have not given anybody an unequivocal statement, as far as we are aware there has never been any threat that LETS income will ever be counted. Certainly Centrelink's regular interrogations never mention income in alternative currency, although they inquire in great detail about assets and trusts and rentals and bonds and cash at hand. You can be sure that the Centrelink gnomes are as well aware of countertrade organisations as those in the Tax Office.

The same principle applies to GST. If the income is “assessable” GST must be paid, but it's recoverable against the GST cost of any expenses. The ATO prefers not to bother. The ruling on GST for businesses in barter is GSTR 2003/14. Section 17 explains that amateurs don't have to worry.

Workers' Compensation insurance is available, in Queensland, through a government agency called WorkCover. It now costs $25 for two years. It is very easy to organise.

Household Workers' Policy covers you against injury claims from any private person you employ, for money or for LETS Units, to work at your private residence. That employee might claim you failed to provide a safe environment. The definition of employee certainly includes fellow LETS members.

Everyone who is likely to employ a private person should have this, not just LETS people.

Generally no. The Commissioner for Taxation has to date exhibited no interest in taxing ordinary LETS members anywhere in Australia. The Australian Tax Office (ATO) knows all about us, of course. There is a page which explains their attitude. The general ruling, IT2668, is still valid and explains things carefully. It is here. Section 11 is the part that applies to us unless we are in business. They call us a “community-based countertrade organisation.”

11. By way of contrast, consideration which is merely the proceeds of a hobby, pastime, domestic or social arrangement, or the receipt of a windfall gain would not fall within the concept of income in subsection 25(1). For example, neighbours who exchange some home-grown vegetables over the back fence will not have derived income in terms of subsection 25(1). Also, benefits derived from the use of informal babysitting clubs would not fall for assessment under subsection 25(1). It is noted that a large proportion of transactions made through community-based countertrade organisations would not fall within the concept of income in subsection 25(1). Only those transactions within these organisations which arise from the carrying on of a business or the provision of skilled services would generally fall for consideration as assessable income.

 The general principle is that, whether for money or LETS Units, “assessable income” is defined in relation to one's regular income and not to sundry informal or amateur hobby or back-yard transactions. The point is that if the income is assessable, the expenses of earning that income are deductable. These are just so easy to invent. Obviously, the Commissioner doesn't want any claims where the expenses exceed the income. On the other hand, if a business like a plumber's receives plumbing income as LETS Units, it's just as taxable as if the plumber was paid in dollars. (The ATO already cheerfully assumes that a Unit is equivalent to a dollar, for their purposes.) So a friendly plumber who does plumbing work for Units is entirely justified in asking for some percentage (income tax or GST) of the bill to be paid in dollars, because the ATO won't accept Units. The page explaining how businesses must treat LETS Units, is Bartering and barter exchanges. As far as superannuation assets are concerned, ATO does not consider your pile of unspent Units as http://law.ato.gov.au/atolaw/view.htm?find=%22vegetables%22&docid=AID/AID2003137/00001