Re:Ask HN: Do I need an ABN to do a one off consultancy gig?...
by jsmeaton on Monday June 08, 2015 @11:30PM
(#9683928)
Thanks for the answer, I'm looking into sole trader structures now. To your knowledge, should I be paying personal income tax on the income, or company tax through the business?
Also, WRT GST, should I put a GST line item on the invoice, but not pay it? Is this specifically for the entity I'm charging?
Re:Ask HN: Do I need an ABN to do a one off consultancy gig?...
by Gustomaximus on Tuesday June 09, 2015 @01:08AM
(#9684181)
You will be assessed to pay tax on income above $18k if I remember correctly. That said on lower levels of income it's quite likely you're expenses will neutralise any tax obligations. E.g. Keep records of costs such as maintaining a home office, driving costs, phone internet etc. Id say get an accountant but if this is your total work for the year you might want to put the time in reading information on e-tax. Make sure you read about deductibles before you start now so you can keep records.
$20k will easily put you under the GST threshold and the requirement to file business activity statements (BAS), but remember to still charge the client GST.