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Hello.  I'm truly stuck.  I've always been an employee and had taxes taken out by my employers.  I travelled down to NSW recently to be a live-in nanny for a few months.  Just as I was moving down, the guy I was going to work for said that in order for him to be able to claim a tax benefit I would need to register as a self-employed care-giver so I could invoice him for my work.  I registered with Centrelink and I got an invoice book and gave him invoices for the work I had done but when I went online to get an ABN, the online test I took said I was (by definition), an employee because he was the only person I provided service for.  So I never registered for an ABN and he never took any taxes out or paid superannuation in.  I need to sort out how to go about clearing all this up.  I no longer work for him but I want to do my taxes (from other employment throughout the year) and don't know what to do about those few months of nannying in NSW.  I worked from late April to late June and made around $12,000.00.  Thanks for any help you can offer.  

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ATO Certified

Community Support

Replies 2

Hi @Peggy

 

Welcome to our Community - @Tracey74 has provided you with some really useful information. We just wanted to clarify a few things:

  • Your tax rate will be calculated on your total income, not by the amount earned from each job. You'll need to declare all of your income in your return, as well as the amount of tax withheld, so we can calculate whether any additional tax is owing. Even though you'll receive an estimate in myTax, your final notice of assessment may be different once we've completed our checks.
  • If you didn't have enough tax withheld during the year, you may end up with a tax bill once you've lodged. If this does happen, contact us and we can help you set up a payment arrangement so you can pay it back over time. You can also use our online payment plan estimator to work out a payment schedule that suits your needs if you prefer. 
  • Sorting out your super may be a little more complex. Check out these links for more information:

If you need information that's tailored to your circumstances, you can phone us on 13 10 20  between 8am - 6pm, Monday to Friday. 

 

Hope this helps.

7 REPLIES 7

Devotee

Replies 0

Oh dear @Peggy!
I want to give you an answer/advice this evening but will definitely need to do some research for you tomorrow and get back to you tomorrow morning unless someone else answers before me.
Don't stress, your doing the right thing by asking for help.
Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time

Devotee

Replies 1

Hi @Peggy

 

You will need to declare the income on your tax return as its assessable income, the amount you earned will need to be shown in employment income, please see https://www.ato.gov.au/individuals/income-and-deductions/income-you-must-declare/employment-income/#...

As no tax was withheld from this income you may have to pay tax depending on your gross taxable income. The first $18,200 you earn is tax free, below is the Tax rates for year ending 2017

Tax rates 2016–17Resident tax rates 2016–17

Taxable income

Tax on this income

0 – $18,200

Nil

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $87,000

$3,572 plus 32.5c for each $1 over $37,000

$87,001 – $180,000

$19,822 plus 37c for each $1 over $87,000

$180,001 and over

$54,232 plus 45c for each $1 over $180,000

The above rates do not include the:

  • Medicare levy of 2%

In regards to the issue with the ABN, You did the right thing by not applying for an ABN when the entitlement tool advised that you was considered an employee!

There is a great page which explains employee/contractor, https://www.ato.gov.au/Business/Employee-or-contractor/Your-tax-and-super-obligations/ & https://www.ato.gov.au/Business/Employee-or-contractor/Myths-and-facts/

 After reading that information you may want to consider lodging a report to the ATO via here,  https://www.ato.gov.au/forms/tax-evasion-reporting-form/, If you would like to talk to someone I suggest you call 13 2866 to discuss this further, When employees incorrectly treat employees as contractors they dont meet their tax and super obligations as an employer.

 

Hopefully this helps!

 

 

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time

Initiate

Replies 0

Thanks so much @Tracey74!!  I was afraid that was going to be the answer... I won't go down this track again!  I'm pretty sure this is a learning experience I won't want to repeat. I hope I can pay it off a little at a time. 

 

I'll check out the links you sent and see how I go.  Thanks again.  Your help is most appreciated.

 

Peggy

Best answer

ATO Certified

Community Support

Replies 2

Hi @Peggy

 

Welcome to our Community - @Tracey74 has provided you with some really useful information. We just wanted to clarify a few things:

  • Your tax rate will be calculated on your total income, not by the amount earned from each job. You'll need to declare all of your income in your return, as well as the amount of tax withheld, so we can calculate whether any additional tax is owing. Even though you'll receive an estimate in myTax, your final notice of assessment may be different once we've completed our checks.
  • If you didn't have enough tax withheld during the year, you may end up with a tax bill once you've lodged. If this does happen, contact us and we can help you set up a payment arrangement so you can pay it back over time. You can also use our online payment plan estimator to work out a payment schedule that suits your needs if you prefer. 
  • Sorting out your super may be a little more complex. Check out these links for more information:

If you need information that's tailored to your circumstances, you can phone us on 13 10 20  between 8am - 6pm, Monday to Friday. 

 

Hope this helps.

Community Support

Replies 0

Hi @Peggy,

 

Welcome to our Community - @Tracey74 has provided you with some really useful information. We just wanted to clarify a few things:

  • Your tax rate will be calculated on your total income, not by the amount earned from each job. You'll need to declare all of your income in your return, as well as the amount of tax withheld, so we can calculate whether any additional tax is owing. Even though you’ll receive an estimate in myTax, your final notice of assessment may be different once we’ve completed our checks.

  • If you didn't have enough tax withheld during the year, you may end up with a tax bill once you’ve lodged. If this does happen, contact us and we can help you set up a payment arrangement so you can pay it back over time. You can also use our online payment plan estimator to work out a payment schedule that suits your needs if you prefer.

  • Sorting out your super may be a little more complex. Check out these links for more information:

If you need information that’s tailored to your circumstances, you can phone us on 13 10 20 between 8am - 6pm, Monday to Friday.

Hope this helps.

Initiate

Replies 1

Thank you, @JodieH - by my best guesstimate, I'm going to owe around 2K (including the 2% Medicare levy) and very little has gone into my super this year.  I hav another family I nannied for late last year (Oct - Dec) who "took taxes out" (my gross was $1,000 per fortnight and she gave me a net pay of $924).  I have not received a pay summary but have requested one today.  Not sure what she was meant to hold out and it seems to be getting more complicated due to these temporary nanny positions this year.  I'm not even sure by what date I need to have my taxes filed.  I usually use eTax or some other pay/get it done quick service but can't really use that this time.  I think I'll need to call you guys and speak to someone tomorrow.  Thanks again for all the help!

Devotee

Replies 0

Hey @Peggy

Glad we could help! It's alot to take in, but you've done the right thing by asking.
Your tax return needs to be lodged by the 31st October 2017, if you don't use an agent.
If you have a MyGov account you are able to link the ATO and lodge via that. This is a free service. Once you have lodged and if you do have to pay tax then you can also set up a payment plan online aswell.
Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
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