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Massage Therapist tax

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I am a massage therapist and have just started my business working from home. I also have a part time job as an employee in an office admin role. I pay tax as an employee on that job and I will earn around $30k per year.  I'm hoping to earn around $30k per year doing massage as well, bringing my total gross income to $60k. I know I do not need to register for GST as my massage income is less than $75k. However, I'd like to know how I go about calculating how much tax to pay on the massage income? The part time job is taxed at a lower amount as its only $30k but when you add it to the massage income, in total it will be in the higher tax bracket. So I'm a bit confused how it works and also how/when to pay it. Also, as a massage therapist working for myself from home, is that classed as PSI income? TIA.

 

 

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Hi @OBT

 

Thanks for your post.

 

Now that you are running your own business, it is great that you are planning ahead with your income tax. Pay as you go (PAYG) instalments help you do this.

 

For more information about PAYG instalments and how it works, check out our website.

 

You have a couple of options when it comes to starting out with PAYG instalments. You can either wait until we determine that you need to start (automatic entry) or you can voluntarily enter the PAYG system (voluntary entry).

 

You can find out more about how to start paying PAYG instalments on our website. This page is really useful as it also provides guidance about how much tax you will need to pay. Check out the calculators and example.

 

For more information about how to declare business income in your personal tax return, refer to the myTax 2019 Business and professional items page our website.

 

Hope this helps.

 

Thanks,

 

ChrisR

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @OBT

 

Thanks for your post.

 

Now that you are running your own business, it is great that you are planning ahead with your income tax. Pay as you go (PAYG) instalments help you do this.

 

For more information about PAYG instalments and how it works, check out our website.

 

You have a couple of options when it comes to starting out with PAYG instalments. You can either wait until we determine that you need to start (automatic entry) or you can voluntarily enter the PAYG system (voluntary entry).

 

You can find out more about how to start paying PAYG instalments on our website. This page is really useful as it also provides guidance about how much tax you will need to pay. Check out the calculators and example.

 

For more information about how to declare business income in your personal tax return, refer to the myTax 2019 Business and professional items page our website.

 

Hope this helps.

 

Thanks,

 

ChrisR