As a self-employed contractor, you're running your own business. You
need an ABN, and you need to pay tax and the superannuation.
You're not entitled to paid leaves, and you
may have to pay the cost to fix any damage caused by you. You can be a
self-employed, or working for your
company or a trust. Knowing your tax obligations from the start can save you
time, money and stress.
There are specific rules for
independent contracts to ensure that you do not
use business structures to avoid your income tax obligations. It is important
to discuss with your accountant, contracting consultant or the government Taxation Office to ensure you understand your tax
obligations. If you’re a sole trader or a partner in a business, you don’t have to make super contributions to a fund for
yourself. Your super fund can accept personal contributions from you if it has
your TFN.
Tax
File Number (TFN)
A tax file number is unique. Issued by
the ATO, use to administer the tax. If you are operating as a sole trader, you use your individual tax file
number. And if you’re in a partnership or
registered company you will need to apply for separate tax file number.
Australian
Business Number (ABN)
Independent contractors Australia needs to
have an Australia business number to use when dealing with other business. If
you don’t have Australia business number before taking work, your hirer may
legally hold the Medicare from your payment.
Goods
and Services Tax (GST)
If you are the independent contractor you need to register for goods and services
tax. It is applied to most goods and services sold in Australia. So it’s like
your services to Goods and services.
Australia
Business Explained
An Australia Business Number explains
when you register with the Australia Business Register. The Australia business
number is unique 11 digit number that identifies your business to the
government and community.
ABN
for Business
If you are running your own business, then you need an Australia business
number.
Register for the ABN.
- Register for goods and services and your business name
- Get an AVS keys to transact online with government agencies
- Government use Australia business number information to build an understanding of business demographics in your local area.
- This help to guide services delivery, plan and manage infrastructure and provide recovery for you and your community.
- Pay tax on time, and it will help for business as contractor compliance and also help the government.
