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_Segourney(Newbie)Newbie
13 Mar 2021

Hello everyone, hope you guys are well.

I just migrated to Australia and last November 2020 I started doing freelance work as a marketing and admin assistant.

I have an ABN registered as a sole trader and work for 2 companies. One is online and the other is I have to go there personally. My earnings aren't that much but I would like to have some guidance about how paying tax works.

I earn 200-400 a fortnight from working from home and 200-500 weekly on my other job which is to get there personally. I'm not registered with GST and I didn't include it in the invoices I made for those companies I worked for.

What is the right thing I should do? Hope you can enlighten me about my situation. Thank you so much!

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2,027 views
1 replies

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Most helpful replyATO Certified Response

StephATO(Community Support)Community Support
ATO Certified Response15 Mar 2021

Hi @Segourney,

You are not required to register for GST until you're earning over $75k, unless you're operating a taxi or ride share business. In terms of personal income tax. You will have the same rate of tax to pay as all other individuals. The only difference is, nobody has been putting money aside for you to cover your tax liability, like they would if you were an employee. When you lodge your tax return you will have a tax debt. You may also be entered in to the pay as you go instrumental system. This is designed to help you keep on top of your obligations by giving you an amount to pay every quarter. I will provide some links below that will help you better understand.

GST: When to register.

Individual income tax rates.

PAYG installments.

All replies

Most helpful replyATO Certified Response

StephATO(Community Support)Community Support
ATO Certified Response15 Mar 2021

Hi @Segourney,

You are not required to register for GST until you're earning over $75k, unless you're operating a taxi or ride share business. In terms of personal income tax. You will have the same rate of tax to pay as all other individuals. The only difference is, nobody has been putting money aside for you to cover your tax liability, like they would if you were an employee. When you lodge your tax return you will have a tax debt. You may also be entered in to the pay as you go instrumental system. This is designed to help you keep on top of your obligations by giving you an amount to pay every quarter. I will provide some links below that will help you better understand.

GST: When to register.

Individual income tax rates.

PAYG installments.

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GST FOR SOLE TRADER | ATO Community