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Contracting under ABN

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Enthusiast

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I am working as a full time employment but thinking of contracting to 1 company (previous employer) on a sporadic / as needs basis in a contracting role (ie no direct supervision, hours, days etc ). Majority of work will be data entry/clerical/implementing process improvements/documents.

Am I allowed to do this as a sole trader (I have an ABN) and reasons why it i ok/not OK.
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ATO Certified

Devotee

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Hi @Debbiesap

 

Debbie it is always recommended that you do the Employee/contractor decision tool, If you're still unsure about your circumstances you should seek independent advice or request a private ruling.

Please see,  https://www.ato.gov.au/calculators-and-tools/employee-or-contractor/

Even if you have an ABN, you need to be doing something in the form of a business or in business for the ABN to remain active. The Australian business register does regular checks to see if a person/business is eligible for an ABN/retain the ABN, When this occurs the ABN maybe cancelled or it is requested that you provide evidence  that you are in business. As not everyone is entitled to an ABN,  you can  check your entitlement  by answering a series of questions here,  https://abr.gov.au/for-business,-super-funds---charities/applying-for-an-abn/abn-entitlement/

 

Another helpful page can be found here,  https://www.ato.gov.au/business/employee-or-contractor/difference-between-employees-and-contractors/ ( you have mentioned this in your comment, so you most probably have an idea)


Regards, Tracey

 

 

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
1 REPLY 1
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Debbiesap

 

Debbie it is always recommended that you do the Employee/contractor decision tool, If you're still unsure about your circumstances you should seek independent advice or request a private ruling.

Please see,  https://www.ato.gov.au/calculators-and-tools/employee-or-contractor/

Even if you have an ABN, you need to be doing something in the form of a business or in business for the ABN to remain active. The Australian business register does regular checks to see if a person/business is eligible for an ABN/retain the ABN, When this occurs the ABN maybe cancelled or it is requested that you provide evidence  that you are in business. As not everyone is entitled to an ABN,  you can  check your entitlement  by answering a series of questions here,  https://abr.gov.au/for-business,-super-funds---charities/applying-for-an-abn/abn-entitlement/

 

Another helpful page can be found here,  https://www.ato.gov.au/business/employee-or-contractor/difference-between-employees-and-contractors/ ( you have mentioned this in your comment, so you most probably have an idea)


Regards, Tracey

 

 

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