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Dual Income Stream Question

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Newbie

Views 1169

Replies 3

Hi all,

 

I have a few questions about my income. I have my own business, as an 'on the side' venutre, and I also get paid wages working for a restaruant. I have claimed tax free threshold on my restaurant job, so my boss doesn’t withdraw any tax over the financial year. My income from this job is generally $120-$190 per week, as I do not work long shifts regularly. Over the course of a financial year, this would equate to around $10K, if we calculate it from the $190 figure. As far as I am aware the tax-free threshold is $18,200 per year. I don’t know that my drawings from my business, in addition to my wages, would go much over this amount, if at all.

 

Should I register for PAYG for the business, and if not, should I be putting aside more money for EOFY in case of tax bill? As far as I know, and you’ll be able to correct me on this, My Drawings is part of personal income and is taxed accordingly. I draw most of what the business earns out anyway. Not certain on how all of this works, and just wanted to clear those things up. Thanks.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @chaso

 

Welcome to our Community!

 

If you're an Australian resident for tax purposes you're entitled to the tax-free threshold which means the first $18,200 of your yearly income isn't taxed. When you lodge your income tax return, we'll calculate your total income from all sources, in your case it will be the income you received from the restaurant and your business as a sole trader. We'll then minus any allowable deductions that you've claimed which will be your taxable income. If your taxable income is $18,200 or less you won't have to pay any tax, but if you have paid tax during the year any tax you've paid will be refunded to you. 


It's up to you if you decide to register for PAYG and you can find more information on our website.

 

Thanks, JodieH. 

3 REPLIES 3

Taxicorn

Replies 2

You don't need to register for PAYG.

 

With the level of income you are stating from your restaurant job and your business it would appear that you will not need to pay any tax.

 

I would still hold some aside just in case.

 

Newbie

Replies 1

Thanks mate, it is greatly appreciated.

Most helpful response

Former Community Support

Replies 0

Hi @chaso

 

Welcome to our Community!

 

If you're an Australian resident for tax purposes you're entitled to the tax-free threshold which means the first $18,200 of your yearly income isn't taxed. When you lodge your income tax return, we'll calculate your total income from all sources, in your case it will be the income you received from the restaurant and your business as a sole trader. We'll then minus any allowable deductions that you've claimed which will be your taxable income. If your taxable income is $18,200 or less you won't have to pay any tax, but if you have paid tax during the year any tax you've paid will be refunded to you. 


It's up to you if you decide to register for PAYG and you can find more information on our website.

 

Thanks, JodieH.