How do I know how much tax to take out of my income as a sub-contractor

 Author: JayATO(Community Support)Community Support

13 Nov 2025

Hi @Tarasianlees

As a contractor with an ABN, you're responsible for managing your own tax obligations. You can put aside tax each week based on your earnings - this creates a balance you can use to pay any tax owed when you lodge your tax return.

You can estimate how much to withhold using our tax withheld calculator. If your business income increases, you might want to look into PAYG instalments - this system lets you make pre-payments of tax to us during the year. We also have a great article with some frequently asked questions regarding PAYGI. Your previous full-time job will affect your total tax calculation.

When you lodge your tax return, you'll need to report all income sources from the year. We'll calculate your total taxable income and work out if you've paid the right amount of tax. The tax-free threshold applies to your combined income from all sources.

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