Hi! I'm pretty confused about what my tax burden is and to whom it's owed.
I'm a US citizen who moved to Australia with my partner for his work in July 2022. I was on a Visitor visa until December 2022, and a bridging visa until March 2023. In March 2023 I received a 461 NZ Family Relationship visa.
I work remotely for a US company. It is periodic "freelance" work, paid by the hour, for a single company. In the US, for tax purposes I am considered a contractor, not an employee, and have to pay self-employment tax. I paid US taxes on my income for the 2021-2022 tax year, which ended on Dec. 31 2022.
I am now trying to figure out what additional tax burdens I have here in Australia now that I have a visa. My understanding is that I will only have to pay tax for this past tax year on the income I have earned since receiving the 461 visa, so on what I earned from March 2023 - 30 June 2023. I do not think this meets the threshold for tax lodgement in Australia (only about 7000 AUD), but I will be required to pay US tax on it.
I am not sure whether I am considered a contractor under Australian tax law, or whether I need an ABN, or whether my employer in the US now has new obligations. I meet some of the criteria listed here for being a contractor, and some for being an employee, I think.
If I am required to have an ABN, do I then need to lodge an AU tax return for 2022-2023, even though I didn't have it actively during the tax year? Will I be in legal trouble for having done freelance work without one? (Can I "backdate" the ABN?) What are my responsibilities going forward?
I thought my relatively low income and freelancer status would make this easier, but obviously it has not. I'm very nervous about making a mistake (and fear I already have!) with all of the overlapping requirements and laws of the two countries involved. Any advice would be appreciated. Thank you!
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