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Bogistoris(Newbie)Newbie
29 Oct 2024

Hi! I've landed my first job in Australia since moving here. The job is fully remote with a European company, and I'm a bit perplexed as to how I should do my taxes. For now it's a temporary position, but I'm hoping it will turn permanent sooner rather than later, and I'm unsure as to how I need to deal with the tax. I know others in the same situation in Norway have created their sole proprietary firm and lodged tax like that, but I'm unsure how to go about it in Australia. Do I need to sort out an ABN and go that route, or do I pay my own tax manually somewhere? Thanks in advance!

236 views
4 replies
236 views
4 replies

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Most helpful reply

AnitaATO(Community Support)Community Support
30 Oct 2024

Hey @Bogistoris,


It depends on what sort of ABN you get whether it's a sole trader ABN or a company ABN. They have different tax thresholds and rates.


Being a contractor will generally mean you need a sole trader ABN. Having a sole trader ABN the $18,200 tax free threshold will be relevant.

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sydauthor(Master)Master
29 Oct 2024

Are you an employee of the company? If so, a Tax File Number is your first step.

https://www.ato.gov.au/individuals-and-families/tax-file-number/apply-for-a-tfn/foreign-passport-holders-permanent-migrants-and-temporary-visitors-tfn-application


If you’re going to be treated by the company as a contractor, then you need an ABN in addition to your TFN. https://www.abr.gov.au/business-super-funds-charities/applying-abn


Bogistoris(Newbie)Newbie
30 Oct 2024

Thank you for the response, much appreciated!


I take it the 18,200 AUD tax-free threshold is irrelevant then if I have to get an ABN?

Most helpful reply

AnitaATO(Community Support)Community Support
30 Oct 2024

Hey @Bogistoris,


It depends on what sort of ABN you get whether it's a sole trader ABN or a company ABN. They have different tax thresholds and rates.


Being a contractor will generally mean you need a sole trader ABN. Having a sole trader ABN the $18,200 tax free threshold will be relevant.

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