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TKO54321(Initiate)Initiate
5 Apr 2026

Hello: I'm outside Australia and will be working under contract, writing a script, creating 2D animation, and editing video for a Melbourne non-profit. They want me to invoice them via an ABN. I know nothing about Australian tax laws, so I wanted to confirm...


1) Is an ABN a must, because this work will be seen publicly, so a Statement by a Supplier form does not apply?

2) If I have an ABN and am then considered a business inside Australia, am I subject to taxes as a business?

3) Does the GST factor into any of this?

4) Do I need to worry about any other taxes I haven't thought of, like an actual tax return?


Thanks for your help!

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8 replies
97 views
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TKO54321(Initiate)Initiate
5 Apr 2026

Also, does the fact that it's a non-profit make any difference in taxes?

KaraATO(Community Support)Community Support
9 Apr 2026

Hi @TKO54321,


As an overseas contractor, you’re not required to have an ABN. However, if you don’t quote an ABN, the Australian non‑profit may need to withhold tax at 47% from your payment.


In some cases, giving them a statement by a supplier to confirm you’re a non‑resident not carrying on business in Australia may mean withholding isn’t needed.


Whether you have Australian tax or GST obligations depends on your specific circumstances, such as where the work is done and whether it’s connected with Australia. If you’re performing services overseas, you may not have Australian tax or GST obligations.

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TKO54321(Initiate)Initiate
9 Apr 2026

Thank you for helping clarify what is a completely new situation for me.


So if I go the ABN route, according to this description--Sole Trader-- I would want to choose sole trader as my structure. Then I'm responsible for lodging Business Activity Statements and filing a tax return, which I need a TFN for? And I'm assuming I'd file as a foreign resident? Looks like I wouldn't meet the requirements to have to register for GST as a sole trader.


Thanks again!

TKO54321(Initiate)Initiate
13 Apr 2026

After a lot of research, I think I’ve arrived at a conclusion, but please if you could confirm this summary, add any missing details, or get me on the right track, I'd greatly appreciate it. I’m simply trying to avoid running afoul of Australian tax laws or incorrectly fill out an ABN application…

 

Me: I'm a citizen of the United States located in the [Removed by moderator].S. working by myself and would be a contractor for an Australian business. Most independent contractors in Australia are considered to be running a business and require an ABN (Australian Business Number), but not overseas contractors.

 

If I do apply for an ABN: I would choose Sole Trader as the structure. I do not have a TFN (Tax File Number), so I'd use two of the requested documents as proof of identity and receive a TFN if the ABN is approved.

 

GST, BAS, ACN: I believe I would not be required to register for GST (Goods & Services Tax) because I won't be making $75,000 or providing limo or ride services. I would not need to file Business Activity Statements because I won't be registered for GST and won't have employee obligations. If the ATO did decide I do need to file a BAS, they will send me the forms ahead of time. A sole trader does not need to register as a company or receive an ACN (Australian Company Name).

 

Income tax & PSI: Sole traders usually must lodge an income tax return, but because there is a DTA (Double Tax Agreement) between the [Removed by moderator].S. and Australia and/or because I am selling goods (my services) into Australia without a physical presence, it seems I would not be required to lodge an individual income tax return in Australia, only in the [Removed by moderator].S. My services of animation and video editing would be considered PSI (Personal Services Income) that sole traders usually report on their returns, but this doesn’t apply to me, since I’m overseas and do not lodge a return.

 

Thanks again!

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