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effigy(I'm new)I'm new
22 Aug 2023

I just need some advice on tax. I currently have a casual position, but I have been offered work as a contractor for a tutoring firm. So, I am a little bit confused about what the implication are in terms of tax. I am guessing as a contractor I need to have an ABN - and that I need to pay income tax and super myself based on my earnings as a contractor(is there something online that helps with this or do I need to have an accountant to sort all this out?). Also, how does the job, as a contractor, effect the tax on my casual job? To me it is all a little bit complicated and I am worried that at the end of the day it isn't worth the hassle. Any advice will be much appreciated. Thank you.

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1,479 views
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Most helpful response

Most helpful reply

WendyATO(Community Support)Community Support
23 Aug 2023

Hi @effigy,


Firstly, you will need to make sure you're entitled to an ABN before applying.


It's up to you personally whether you need an accountant to sort this out. I will though provide you some information on what your key tax obligations are as a sole trader.


You don't have to pay super for yourself, but you can choose to make personal contributions to save for your retirement.


You will report all your income that you earn as a contractor as business income. Your casual income paid by an employer will be salary and wages in your tax return.


Your business income earnt you do not deduct tax during the financial year. When you go to lodge your tax return, we will then determine the amount of tax you will need to pay on your business income.


You can though pay regular prepayments of the tax on your business income throughout the year to avoid a large tax bill. This is called Pay as you go instalments for business income.


There are further details on our page about Business structures - key tax obligations under the section sole trader.


Hope this information is helpful to you and good luck!




All replies

Most helpful reply

WendyATO(Community Support)Community Support
23 Aug 2023

Hi @effigy,


Firstly, you will need to make sure you're entitled to an ABN before applying.


It's up to you personally whether you need an accountant to sort this out. I will though provide you some information on what your key tax obligations are as a sole trader.


You don't have to pay super for yourself, but you can choose to make personal contributions to save for your retirement.


You will report all your income that you earn as a contractor as business income. Your casual income paid by an employer will be salary and wages in your tax return.


Your business income earnt you do not deduct tax during the financial year. When you go to lodge your tax return, we will then determine the amount of tax you will need to pay on your business income.


You can though pay regular prepayments of the tax on your business income throughout the year to avoid a large tax bill. This is called Pay as you go instalments for business income.


There are further details on our page about Business structures - key tax obligations under the section sole trader.


Hope this information is helpful to you and good luck!




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Taxation advice on working as a contractor | ATO Community