Working as English teacher online

[#1]

Hello,

My primary employer is Australian, however I am interested in applying for a second job with a China-based English teaching company. The company pays salary in USD, transferred to my bank account on a monthly basis based off the hours taught online. Teachers are advised that they are expected to handle their own tax.

How would this work in Australia? Generally, would someone start an ABN to declare taxes for this?

Thanks

[#2 · Accepted solution]

Hi @dp1994

Thank you for your post and welcome to ATO Community.

In answer to your first question 'How would this work in Australia', if you have assessable income from overseas, it must be declared in your Australian income tax return and converted to Australian dollars. I refer to links Australian Resident and Foreign exchange rates on our ATO website. Customers should report foreign income using the Tax return for individuals (supplementary section or MyTax if lodging electronically).

In regards to your second question 'do you need to apply for an ABN' refer to Business or company registrations page and click on the link 'entitled to an ABN' as not everyone is not entitled to one. You will be asked a series of questions when applying for one to determine your entitlement. If eligible, apply on ABR.gov.au, link apply for an ABN.

Hope this information helps.

Regards

DebC