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Hi, I earn some money tutoring high school students. I am not employed by any business and I get paid in cash. Does this count as assessable income?
Welcome to ATO Community and thanks for your post! We can provide you with general information in this forum. It’s important to understand the differences between a hobby and a business for tax and other purposes. We have a video that may help you determine if you are in business yet.
As an alternative, you can also submit a request for advice through our early engagement team.
I hope this helps, @JodieM
Good question. What is the criteria for deducting tax from the tutoring income? Do we use the data presented in the PAYG withholding weekly tax timetable or the PAYG installment? Is the tax paid weekly or monthly and is this done via Bpay or ATO payment portal?
Thanks for your post.
If your scenario is similar to the original poster, whether you will need to start PAYG instalments will depend on your circumstances. If you are required to, the amount you need to pay will also depend on your circumstances.
When you lodge your tax return, we may determine that you need to start making PAYG instalments. If so, we will let you know. Alternatively, you can start paying PAYG instalments voluntarily.
They are generally paid to us quarterly although you may be able to choose a once or twice a year option. Certain corporate tax entities are required to pay monthly. No matter how often you are required to pay, you have several payment options.
Hope this helps.
Thank you for the prompt reply.
I have considered all that were mentioned and have already consulted my accountant on the best way forward.