Self-employment in Australia is common.
Some jobs in Australia may require you to be a contractor or be self-employed. Being self-employed is different to cash in hand. Cash in hand is illegal, as you are getting paid but not telling the government. Being self employed means you are paid by someone else, But will pay your own tax. If you are thinking of self-employment in Australia, there are a few things that you need to do.
Start with an Australian Business Number or ABN.
To be self-employed in Australia, you must have an Australian Business Number or ABN. An Australian Business Number (ABN) is a unique 11 digit number that identifies your business to the government and community. To apply for an ABN, you need to do so through the Australian Business Register. An ABN is free. If you ask a tax agent to fill the forms out for you, then they will charge for the service.
Superannuation or ‘super’, is money that an employer has to put aside for your retirement. Your employer might not pay superannuation if you are a contractor. It is not compulsory for you to pay it to yourself, however it is beneficial to have money waiting for you when you retire. Check out this website for more information about superannuation, especially if you are going to return to your home country before retirement. You can also get advice from a tax agent.
Keep all of your receipts
When you work for yourself, your work related expenses are tax deductible. This means that you can claim the expenses and pay less tax. A tax agent will tell you what can be claimed. To assist your tax agent, sort your receipts into quarters. July/Aug/September, October/November/December, January/February/March and April/May/June.
Submit a tax return
At the end of each financial year (July to June), you must submit a tax return to the government. If your tax is simple, then you could fill out the forms yourself online. Otherwise a tax agent will complete your return for you. Check out this link for more information https://www.ato.gov.au/Individuals/Lodging-your-tax-return/Lodge-with-a-registered-tax-agent/#choosinganagent
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