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28 Aug 2023

My school pays me a salary to teach and PAYG tax is deducted by them, that's easy! But my problem is: The same school also contracts me seperately by ABN as an 'independent contractor' to make the class powerpoint slides and will pay me a one off lump sum of $1800 at the end of the course (and no tax is deducted). My question: Where do I put this ABN/contractor lump sum income in my tax return? Do I add my school in the tax return as an employer with $1800 income and $0 tax withheld? Or do I add the $1800 to the sole trader/business section? Thanks!

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1,446 views
1 replies

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Most helpful reply

GabbyATO(Community Support)Community Support
29 Aug 2023

Hi @freelanceincome,


You would include this income in the sole trader/business income section. You don't need to work out the amount of tax you're liable to pay on this income - we'll do this for you when you lodge and issue an assessment showing either the amount of tax owing to us or your refund.

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Most helpful reply

GabbyATO(Community Support)Community Support
29 Aug 2023

Hi @freelanceincome,


You would include this income in the sole trader/business income section. You don't need to work out the amount of tax you're liable to pay on this income - we'll do this for you when you lodge and issue an assessment showing either the amount of tax owing to us or your refund.

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Where on the tax return to put freelance income? | ATO Community