#TaxAdvice #IncomeTax #ABN #TaxationRules
Hey everyone! 👋 Need some help understanding tax implications for a new weekend job I started. So here’s the scenario:
I work just Friday nights, earn $30/hr, and usually work 6 hours, totaling $180 a week ($9360 a year). Since it’s not taxed, do I need to report this income on my tax return and pay a portion back? 🤔
Here are a few points to consider as a possible solution:
– If you earn more than $450 in a financial year, you are required to lodge a tax return.
– Since you’re using an ABN to invoice, you may need to pay Goods and Services Tax (GST) if your turnover exceeds $75,000.
– Keep track of your expenses related to work, as they may be tax-deductible.
I hope this helps clarify things a bit! Any other tax experts out there with additional insights? Let’s help each other out! 💡📝
If it’s through an ABN, you are essentially running a sole trade business.
So yes, it’ll need to be declared on your tax, and will be taxed at your marginal rate. (Ie added on top of your other income).
Yes, you need to declare it as income.
In your tax return there is a section for income earned running a business.
Something else to note, just because you’re being paid through and ABN, does not mean that your not classified as an “employee” of the company according to fairwork.
Yes, declare all income.
Simply the answer is yes!
However, when you do your taxes do you enlist the help or advice of a registered accountant? If you do, you can ask the accountant if their is any activity against your ABN. This activity ( work ) will be what your boss of your second job has declared to the ATO as income paid to a sole trader (ABN Holder).
If he has done his due diligence and reported the earnings, you will have to pay tax on your earnings.
If he hasn’t done his due diligence and not reported your earnings, the ATO will have no record of your earnings, even though you should still declare these earnings anyway.
Your boss, whether he knows it or not, should still pay you superannuation on top of these earnings to, even though many business operators don’t do this.
The rules are clear…. But it can get quite murky if the rules aren’t kept.
If you find a 50 cent piece of the ground the ATO would like you to express post them 15 cents. The answer to the question “Do I have to pay tax on this” is always yes.
So youre essentially working Friday nights for $21 an hour after tax. That’s not a lot??
You are working for below poverty rates.
This is called sham contracting, google the term. Under ABN you are basically running a business. With this comes accountability and you should technically have insurance such as public liability. The employer gets the benefits of claiming your invoices as an expense and forfeit the need to pay your tax, super or workers comp.