abn performing artist super payg

Question

KaraATO · Accepted Answer

If you're registered for GST (https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst#:~:text=GST-,GST%20%2D%20Goods%20and%20Services%20Tax,-Explains%20how%20goods) (As you expect to exceed the min threshold of $75K earned in one year) then you'd charge GST on your invoices for promotional activity, as long as the work is a part of your business and not considered employment. PAYG Withholding (PAYGW) 20% PAYG withholding rule only applies when your treated as an employee for those promotional contracts. If you're operating a business and invoicing, then the business that pays you for your service wouldn't withhold any PAYGW. You're responsible for ensuring the tax from your sales is paid, including on GST and income tax. PAYG Instalments If you're not classed as an employee, I recommend reading through PAYG instalment system (https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/business-activity-statements-bas/payg-instalments#:~:text=PAYG%20instalments-,Pay%20as%20you%20go%20(PAYG)%20instalments,-You%20report%20and). If you have your own business and earn money the PAYG instalment system helps you pay small chunks of tax during the year. That way, you won't owe a big amount all at once at tax time. I'd say your best seeing a registered tax or BAS agent as they can look at your exact setup and help you figure out: - Whether PAYG withholding applies - If you can charge GST - How to report everything correctly.

RachelATO · Answer

Check out this page - Work out if you have to pay super (https://www.ato.gov.au/businesses-and-organisations/super-for-employers/work-out-if-you-have-to-pay-super) for more info but in short, no. As a sole trader, you would be invoicing a company for the services you are providing. A company would pay super and withhold from your salary & wages if you are an employee of theirs.

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