Do I need an ABN ??

[#1]

Hi everyone,

I have a regular PAYG job. Have been asked by a friend to clean their business office once a week. I would use cleaning equipment/products located at the office. They  will pay me by putting money in my bank account. Am I an employee? Do I need an ABN & invoice them ? Is this PSI income ? I've tried the PSI test but it didn't say for sure. I've love the extra income just not sure how to declare income/ manage tax. It would only be 150/week. I earn under 40k from my PAYG job. 

I can't find an example from ATO site that is clear about this situation.

Any clarification gratefully received !

Thanks

[#2 · Accepted solution]

Hi@ katey34

Thanks for your question. Refer to Employee/contractor decision tool to work out if you will be working as an employee or contractor for tax purposes. If you are considered to be an contractor you may apply for an ABN.

PSI income depends on the work type you will be doing.Refer to ATO QC16906 for further clarifications on PSI income.

Hope this information may help you to find answers to your question.

Thanks.

RodrigoP