Thought I might let people know about this who doesn't - we were in the Blue Mountains Lets many years ago when we lived there and used it heaps for many things, now we are in the Hunter Valley we have joined Hunter Lets and are getting good value out of it.
A LETSystem is a trading network supported by its own internal currency. It is self-regulating and allows its users to manage their account balance within the boundaries of the network.LETSystems are community based non-profit trading systems that enable members t...o exchange goods and services using little or no cash. It is a method of trading, which depends on skills and time instead of money, exchanging a unit of local currency (Molly), not as an alternative to conventional money but to compliment the current system of trade.LETSystems do not issue any currency, each person creates their own.The currency only exists as numbers in accounts, moving from account to account. The recording of these transactions is done using a computer.
This is very much like having a conventional cheque book account.Each member holds and account in a "central office" where transactions are recorded. trading is done with cheques and multilist transaction sheets. All accounts begin at zero.... For one account to move up, another account must move down.
So at any one time approximately half the members will have positive balances and the other half negative. Negative Balances are an essential feature of the system, so that they are not to be viewed as bad or wrong (ie. debts). Negative balances simply mean members have received more goods and services than they have given out. You can buy something with your first trade. If you wait to earn before you spend, you could find it slower to start trading.
If everybody had to wait to earn before they could spend, nobody would get started!A commitment or negative balance, represents a willingness to consider supplying goods or services to one or more account-holders at some future date.In a healthy system, account balances bob up and down, sometimes having a balance in credit and sometimes in commitment. It makes no difference whether you have a positivie or negative balance.
Here is the actual link for all the Hunter / Newcastle people -
http://www.auslets.org/hunter
For others - in Australia and the rest of the world.
http://www.lets.org.au/
What about the DSS?
The Dept of Social Security supports the idea of non-profit community trading systems and exempts all LETSystem income from declaration, ie. it will not affect any benefit or pension. However you should not allow LETSystem trading to interfere with your obligations to be available for work or training programs. Negotiations are underway to have LETS administration work counted as part of the "Work for the Dole" requirements for single parent pensioners and unemployed.
What about the Taxation Department?
Accountability for taxes incurred by members is the obligation of those involved in an exchange. The LETSystem has no obligation or liability to report to taxation authorities or to collect taxes on their behalf. The official ruling states that if you earn local units whilst providing a service which is your main profession you must pay tax on all profits OVER 300 units as if you had earned dollars. Units are also deductible so if you spend your local units (money) on your business expenses you may declare it. For example: if your main profession is a plumber and you do some plumbing work to the value of 700 (local unit money) then 400 (local unit money) is considered taxable at the normal rate. If however you spend those 400 (local unit money) on bookkeeping or other business expenses then the profit you have made in that year is only 300 (local unit money) and the tax department don?t want to know about it. Also if you earn (local unit money) as a handyman (ie put up a chook shed) then this is not considered as earnings under your main profession (plumber) and is exempt from income tax
A LETSystem is a trading network supported by its own internal currency. It is self-regulating and allows its users to manage their account balance within the boundaries of the network.LETSystems are community based non-profit trading systems that enable members t...o exchange goods and services using little or no cash. It is a method of trading, which depends on skills and time instead of money, exchanging a unit of local currency (Molly), not as an alternative to conventional money but to compliment the current system of trade.LETSystems do not issue any currency, each person creates their own.The currency only exists as numbers in accounts, moving from account to account. The recording of these transactions is done using a computer.
This is very much like having a conventional cheque book account.Each member holds and account in a "central office" where transactions are recorded. trading is done with cheques and multilist transaction sheets. All accounts begin at zero.... For one account to move up, another account must move down.
So at any one time approximately half the members will have positive balances and the other half negative. Negative Balances are an essential feature of the system, so that they are not to be viewed as bad or wrong (ie. debts). Negative balances simply mean members have received more goods and services than they have given out. You can buy something with your first trade. If you wait to earn before you spend, you could find it slower to start trading.
If everybody had to wait to earn before they could spend, nobody would get started!A commitment or negative balance, represents a willingness to consider supplying goods or services to one or more account-holders at some future date.In a healthy system, account balances bob up and down, sometimes having a balance in credit and sometimes in commitment. It makes no difference whether you have a positivie or negative balance.
Here is the actual link for all the Hunter / Newcastle people -
http://www.auslets.org/hunter
For others - in Australia and the rest of the world.
http://www.lets.org.au/
What about the DSS?
The Dept of Social Security supports the idea of non-profit community trading systems and exempts all LETSystem income from declaration, ie. it will not affect any benefit or pension. However you should not allow LETSystem trading to interfere with your obligations to be available for work or training programs. Negotiations are underway to have LETS administration work counted as part of the "Work for the Dole" requirements for single parent pensioners and unemployed.
What about the Taxation Department?
Accountability for taxes incurred by members is the obligation of those involved in an exchange. The LETSystem has no obligation or liability to report to taxation authorities or to collect taxes on their behalf. The official ruling states that if you earn local units whilst providing a service which is your main profession you must pay tax on all profits OVER 300 units as if you had earned dollars. Units are also deductible so if you spend your local units (money) on your business expenses you may declare it. For example: if your main profession is a plumber and you do some plumbing work to the value of 700 (local unit money) then 400 (local unit money) is considered taxable at the normal rate. If however you spend those 400 (local unit money) on bookkeeping or other business expenses then the profit you have made in that year is only 300 (local unit money) and the tax department don?t want to know about it. Also if you earn (local unit money) as a handyman (ie put up a chook shed) then this is not considered as earnings under your main profession (plumber) and is exempt from income tax
You don't have to trade in your own area either, you can trade with anyone else in Australia or around the world and their currency (local money) will be transfered over into your own local money.
Here are some of the things traded in the Hunter LETS the other areas would be pretty simular.
Goods and services categories of Hunter LETS
• Accommodation • Advertising, Marketing • Animals and Petcare
• Art & Crafts • Automotive • Business Management, Consulting
• Catering, Cooking • Childcare • Clerical, Office
• Clothes/Sell/Swap • Computers • Haircare & Beauty
• Counselling • Education, Training and Tuition • Entertainment
• Esoteric • Facilitation • Fencing
• Financial • Firewood • Food/Produce
• For Hire • Gardening • Goods for sale
• Healing, Health & Well Being • Home Help • Holiday Care
• Home Improvement, Maintenance • Housekeeping • Labouring
• Languages • Massage • Media
• Miscellaneous • Music & Musicians • Party Time
• Photography • Professional Services • Recreation, Sport
• Repairs • Sewing, Knitting & Crochet • To Be Assigned
• Tools & Equipment, Hire & Repair • Tradesmen • Transport/Hire
• Video/Books • Working Bee Participation • Worms/Products
Some questions and answers that get asked.
LETS stands for - local exchange trading system
Q. What is the CES?
The CES is essentially an exchange system. It allows us to exchange our narrow specialisations for the narrow specialisations of others. The regular money system, of which we are so familiar, is another exchange system. Throughout history there have been many different exchange systems. All of them assist us to overcome the inconveniences of direct barter. While the monetary exchange system uses a value representation to mediate exchanges, the CES has no such medium. Instead it uses information as the organising principle. Value is transferred from sellers to buyers and a record is kept of it. These records ensure that buyers 'pay' for what they have received by doing or selling something for/to someone else. This works just as well as money but sets up a completely different relationship between people. In the monetary exchange system production is geared towards maximising the amount of the exchange medium that can be obtained, whereas in the CES production is geared towards the satisfaction of needs. This imparts a completely different logic in our relationships with each other.
Q. What does joining the CES mean for me?
The CES is not a club or organisation but a new exchange or 'money' system. Therefore you do not 'join' and become a 'member' of an association. You register to use the CES as a new way of trading, without using your national currency. You will feel that you are part of a community but this is because you will experience a different spirit among the traders of the CES. The CES is characterised by openness, friendliness, honesty and trust, which is quite different to what your are likely to experience in the 'old' money system.
Q. Does it cost anything to join the CES?
There are many CES exchanges. Some charge an annual subscription fee in the national currency, others have no charges in conventional money, or any joining or membership fees in the exchange's own currency. Where there are no subscription fees, administration costs are covered by a small transaction levy (in the CES currency) that is added to all transactions, but such levies only become effective when you begin trading. Administrations require an income for running and promoting their CES exchange groups.
Q. How can I begin trading without any money in my account?
A. The CES does not require that you have anything in your account to begin trading. As 'money' in this system is just a book entry or 'point scoring', there is no need for a supply of it. You begin either by going into debit (not debt). This means your account has a negative balance but unlike with conventional money you do not have to pay interest on it and there is no stigma attached to it (unless it gets large and is never reduced). Your debit simply means that you owe the community goods and services to the value of the debit.
Q. What is to stop me just entering payments into my account so that I get lots of credits?
A. You don't need credits to trade so there is no point in this. In any case, your credits are someone else's debits, and they will question your false trades with them. Your balance, which is open for everyone to see, will also reveal what you are doing. There is no need to cheat in the CES because you can simply go into debit and 'pay back' what you have received by delivering goods and services to others at a later time.
Q. What if someone exploits the system and then leaves the community without giving anything in return?
A. This can happen but equally someone who has given more than they have taken can also leave the community. If someone exploits the system it is the community that bears the burden, not any particular user.
Q. What if someone doesn't pay me for work I have done for them?
A. That is impossible. You - the seller - are responsible for entering or getting entered the transaction information and you will be immediately credited for it. In the CES the buyer is the passive party.
Q. Is this just a tax dodge?
Definitely not! Our motives are noble. We want to create a more equal and just society where wealth is distributed according to contribution, not according to your ability to 'make money'. In other countries where these systems have become big, the state has either ignored the tax angle because it saves the state money on welfare payments, or there is an agreement to provide services to the state. Our approach is that when we become big, the state should become a member of the CES and participate in the normal way. In this way the state could credit itself through the services it provides to all members and debit itself by purchasing the services of CES members.
Q. What if someone takes more from the system than they give back?
Before agreeing to trade with someone you should check their balance. If you see they have made a lot of purchases and are running a large debit, then refuse to trade until their standing has improved.
Q. What if my service is popular but I can't find anything I want? What is the use of a large credit balance if I can't spend it?
A. Don't trade unless you feel there is something you can get in exchange. As more and more people join the community the more likely it becomes that someone will have something you want. Encourage others to join.
Q. What is the currency called and what is it worth?
A. Each exchange has its own name for its currency. A common name used in the CES is 'Talents'. One Talent (or other name) is usually equal to one unit of the national currency (Dollar, Rand, Pound). This is purely to give it reference. CES currencies are not linked to the national currencies so could deviate over time. CES currencies are also not subject to inflation. Some exchange groups base their unit of account on time (e.g. one hour, one minute).
Q. How are goods and services valued?
A. Traders value their own goods and services, using the 1:1 relationship between their exchange's currency and the national currency. The ‘law’ of supply and demand applies, but within the context of a closed group. This frequently differs from the situation ‘outside’.
Q. Is there just one CES exchange?
A. No, there are many established CES exchanges in different parts of the world, with new ones being introduced all the time. If you would like to start one in your area go to the registration page and fill in the form.
Q. Is it possible to trade between the different CES exchanges?
Yes! All the CES exchanges are linked and inter-exchange trading is possible. The CES currencies are as versatile as the national currencies. This means you can trade with any participant nationally or internationally, and your offerings are internationally accessible. Currency earned in one place can be spent in another
Here are some of the things traded in the Hunter LETS the other areas would be pretty simular.
Goods and services categories of Hunter LETS
• Accommodation • Advertising, Marketing • Animals and Petcare
• Art & Crafts • Automotive • Business Management, Consulting
• Catering, Cooking • Childcare • Clerical, Office
• Clothes/Sell/Swap • Computers • Haircare & Beauty
• Counselling • Education, Training and Tuition • Entertainment
• Esoteric • Facilitation • Fencing
• Financial • Firewood • Food/Produce
• For Hire • Gardening • Goods for sale
• Healing, Health & Well Being • Home Help • Holiday Care
• Home Improvement, Maintenance • Housekeeping • Labouring
• Languages • Massage • Media
• Miscellaneous • Music & Musicians • Party Time
• Photography • Professional Services • Recreation, Sport
• Repairs • Sewing, Knitting & Crochet • To Be Assigned
• Tools & Equipment, Hire & Repair • Tradesmen • Transport/Hire
• Video/Books • Working Bee Participation • Worms/Products
Some questions and answers that get asked.
LETS stands for - local exchange trading system
Q. What is the CES?
The CES is essentially an exchange system. It allows us to exchange our narrow specialisations for the narrow specialisations of others. The regular money system, of which we are so familiar, is another exchange system. Throughout history there have been many different exchange systems. All of them assist us to overcome the inconveniences of direct barter. While the monetary exchange system uses a value representation to mediate exchanges, the CES has no such medium. Instead it uses information as the organising principle. Value is transferred from sellers to buyers and a record is kept of it. These records ensure that buyers 'pay' for what they have received by doing or selling something for/to someone else. This works just as well as money but sets up a completely different relationship between people. In the monetary exchange system production is geared towards maximising the amount of the exchange medium that can be obtained, whereas in the CES production is geared towards the satisfaction of needs. This imparts a completely different logic in our relationships with each other.
Q. What does joining the CES mean for me?
The CES is not a club or organisation but a new exchange or 'money' system. Therefore you do not 'join' and become a 'member' of an association. You register to use the CES as a new way of trading, without using your national currency. You will feel that you are part of a community but this is because you will experience a different spirit among the traders of the CES. The CES is characterised by openness, friendliness, honesty and trust, which is quite different to what your are likely to experience in the 'old' money system.
Q. Does it cost anything to join the CES?
There are many CES exchanges. Some charge an annual subscription fee in the national currency, others have no charges in conventional money, or any joining or membership fees in the exchange's own currency. Where there are no subscription fees, administration costs are covered by a small transaction levy (in the CES currency) that is added to all transactions, but such levies only become effective when you begin trading. Administrations require an income for running and promoting their CES exchange groups.
Q. How can I begin trading without any money in my account?
A. The CES does not require that you have anything in your account to begin trading. As 'money' in this system is just a book entry or 'point scoring', there is no need for a supply of it. You begin either by going into debit (not debt). This means your account has a negative balance but unlike with conventional money you do not have to pay interest on it and there is no stigma attached to it (unless it gets large and is never reduced). Your debit simply means that you owe the community goods and services to the value of the debit.
Q. What is to stop me just entering payments into my account so that I get lots of credits?
A. You don't need credits to trade so there is no point in this. In any case, your credits are someone else's debits, and they will question your false trades with them. Your balance, which is open for everyone to see, will also reveal what you are doing. There is no need to cheat in the CES because you can simply go into debit and 'pay back' what you have received by delivering goods and services to others at a later time.
Q. What if someone exploits the system and then leaves the community without giving anything in return?
A. This can happen but equally someone who has given more than they have taken can also leave the community. If someone exploits the system it is the community that bears the burden, not any particular user.
Q. What if someone doesn't pay me for work I have done for them?
A. That is impossible. You - the seller - are responsible for entering or getting entered the transaction information and you will be immediately credited for it. In the CES the buyer is the passive party.
Q. Is this just a tax dodge?
Definitely not! Our motives are noble. We want to create a more equal and just society where wealth is distributed according to contribution, not according to your ability to 'make money'. In other countries where these systems have become big, the state has either ignored the tax angle because it saves the state money on welfare payments, or there is an agreement to provide services to the state. Our approach is that when we become big, the state should become a member of the CES and participate in the normal way. In this way the state could credit itself through the services it provides to all members and debit itself by purchasing the services of CES members.
Q. What if someone takes more from the system than they give back?
Before agreeing to trade with someone you should check their balance. If you see they have made a lot of purchases and are running a large debit, then refuse to trade until their standing has improved.
Q. What if my service is popular but I can't find anything I want? What is the use of a large credit balance if I can't spend it?
A. Don't trade unless you feel there is something you can get in exchange. As more and more people join the community the more likely it becomes that someone will have something you want. Encourage others to join.
Q. What is the currency called and what is it worth?
A. Each exchange has its own name for its currency. A common name used in the CES is 'Talents'. One Talent (or other name) is usually equal to one unit of the national currency (Dollar, Rand, Pound). This is purely to give it reference. CES currencies are not linked to the national currencies so could deviate over time. CES currencies are also not subject to inflation. Some exchange groups base their unit of account on time (e.g. one hour, one minute).
Q. How are goods and services valued?
A. Traders value their own goods and services, using the 1:1 relationship between their exchange's currency and the national currency. The ‘law’ of supply and demand applies, but within the context of a closed group. This frequently differs from the situation ‘outside’.
Q. Is there just one CES exchange?
A. No, there are many established CES exchanges in different parts of the world, with new ones being introduced all the time. If you would like to start one in your area go to the registration page and fill in the form.
Q. Is it possible to trade between the different CES exchanges?
Yes! All the CES exchanges are linked and inter-exchange trading is possible. The CES currencies are as versatile as the national currencies. This means you can trade with any participant nationally or internationally, and your offerings are internationally accessible. Currency earned in one place can be spent in another
No comments:
Post a Comment