Announcements
Curious about the JobMaker Hiring Credit? Have a read about who is eligible and how to register.

ATO Community

Self Employed

This post is archived and may not be up-to-date.

Newbie

Views 951

Replies 3

Hi, I am recently now self employed, how do I go about the tax free threshold? I remember when I worked for a company I submitted a form to receive the tax free threshold, now how would I go about that? Do I need to submit a new form to the ATO as I am self employed? Or do I just work, out the money aside come tax time and pay it then?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Nicole77,

 

Thanks for getting in touch!

 

If you're self employed as a sole trader and a resident of Australia for tax purposes, the income you receive isn't taxed and it's your obligation to put tax aside for your tax liability that is worked out when you lodge your income tax return. 

 

When you report your business income and expenses in your tax return, we'll work out your taxable income and how much tax you're required to pay taking into account the tax-free threshold. If you have an estimate on how much you'll earn for the year, you can use the tax rates as a guide for how much tax you'll need to pay.

 

Thanks, JodieH.

3 REPLIES 3

Taxicorn

Replies 0

Or do I just work, put the money aside come tax time and pay it then?

 

Yes

Taxicorn

Replies 0

@Nicole77 

Or do I just work, put the money aside come tax time and pay it then?

 

Yes

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @Nicole77,

 

Thanks for getting in touch!

 

If you're self employed as a sole trader and a resident of Australia for tax purposes, the income you receive isn't taxed and it's your obligation to put tax aside for your tax liability that is worked out when you lodge your income tax return. 

 

When you report your business income and expenses in your tax return, we'll work out your taxable income and how much tax you're required to pay taking into account the tax-free threshold. If you have an estimate on how much you'll earn for the year, you can use the tax rates as a guide for how much tax you'll need to pay.

 

Thanks, JodieH.