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Alana7630(Enthusiast)Enthusiast
9 Sept 2024

I was employed by a company on payg from July 2023 to Feb 2024 and then from Feb 2024 to June 2024 I did contract work for another company for only 4months. I was advised i didn't need an ABN or register for GST as I was below the threshold. I do not intend to go back to doing contract work in the future.


Do I have to lodge 2 different tax returns?


How do I pay tax on the contract work I did for the 4months? Will the ATO automatically deduct it when I lodge my tax return? I want to make sure I'm lodging my return correctly so I don't get penalised.


Any advice would be much appreciated. Thanks



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271 views
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Taxduck(Taxicorn)Taxicorn
9 Sept 2024

You lodge one tax return. ATO will assess your tax liability on your total taxable income for the year. Probably end up with a tax bill.

ATO won't deduct anything. Up to you to pay any tax liability after your tax return has been assessed. Notice of assessment will provide you with the details after your tax return has been lodged and processed.

Be aware, ATO will likely enter you into the PAYG instalment system. This link details how it works

PAYG instalments | Australian Taxation Office (ato.gov.au)

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
9 Sept 2024

You lodge one tax return. ATO will assess your tax liability on your total taxable income for the year. Probably end up with a tax bill.

ATO won't deduct anything. Up to you to pay any tax liability after your tax return has been assessed. Notice of assessment will provide you with the details after your tax return has been lodged and processed.

Be aware, ATO will likely enter you into the PAYG instalment system. This link details how it works

PAYG instalments | Australian Taxation Office (ato.gov.au)

Liked by Alana7630
Alana7630(Enthusiast)Enthusiast
17 Sept 2024

If I was on the incorrect tax band of non-resident and was being tax incorrectly in my payg role, would the tax i had to pay from my contract work be deducted from that amount?

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Half my salary was payg and half as a contractor how do i pay tax on the contract work? | ATO Community