Announcements
We’re doing scheduled maintenance on ATO Community to bring you a bigger, better and brighter online community.
You may see us go into read-only mode over the weekend while we do this. Don’t worry! You’ll still be able to search the site to find your answers.

ATO Community

Re: Lodge myTax online - started as contractor then becomes an employee

Initiate

Views 139

Replies 4

Hello,

I have started off the year with a few days of contract work as an office admin, working from home, with a fresh ABN number. Didn't work for most of the year, then landed a casual job as an employee in May.

1. How will I add my contract work income into myTax? Should I input as Personal Services Income?

2. Should I pay GST for the contract income received? I believe I am registered for GST.

Thanks for clarifying my doubts.

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 3

Hi @MineCat,

 

1. The income you earn through your sole trader ABN will be declared under Personal Services Income in your tax return.

 

2. Your are not required to register for GST unless your annual GST turnover (income not including deductions) is $75,000 or more.

 

However, if you are registered for GST then you must include it on your invoices (unless GST-free) and report and pay it to us through your Activity statements.

4 REPLIES 4

Most helpful response

ATO Certified Response

ATO Community Support

Replies 3

Hi @MineCat,

 

1. The income you earn through your sole trader ABN will be declared under Personal Services Income in your tax return.

 

2. Your are not required to register for GST unless your annual GST turnover (income not including deductions) is $75,000 or more.

 

However, if you are registered for GST then you must include it on your invoices (unless GST-free) and report and pay it to us through your Activity statements.

Initiate

Replies 2

Hi RenATO,

Thanks for clarifying my questions.

It seems my GST registration was not required as now there is less chance that I may work as a contractor on my ABN.

Should I do anything to undo registration or just leave it as it is?

Thank you.

Regards

ATO Community Support

Replies 1

Hi @MineCat,

 

If you haven't been using your ABN for 28 days, we ask you to cancel it.  Your GST registration will be cancelled at the same time, from the same cancelation date.  Consider back dating the cancelation date and having issued BASs from the date cancelled.

 

If you need to activate your ABN in the future you can.  As @RenATO mentioned the GST threshold is $75,000.00.  Keep this in mind, mental note number 427 for the day, for future reference.

 

We've some great information on our website about ABN maintenance.  It's worth checking out.

 

Take care and stay safe.

Initiate

Replies 0

Hi CaroATO,

Thanks so much for your response.

Thanks for the "mental note" and also will check out ABN maintenance.

Best regards