anyone know about ABNs and tax? (1 Viewer)

[adamsaclown]

this is my situation, hopefully someone can help:

my friend is going overseas for a couple of months, and she wants me to cover some weekend work she does typing up dictated reports. the family she works for is happy for me to do this, except they require me to get an ABN (Australian Business Number), I think probably because if they hire us as contractors it takes the burden off them having to withhold PAYG tax, etc?

But I'm also currently employed at a casual job, where they tax me normally, and i fill out tax returns to get any tax they withheld cos most of the time I fall under the $6000 mark.

Will getting an ABN and receiving money through this small 8 week thing (as a contractor) affect how my tax is withheld with my other job (as an employee)? Will it affect my ability to claim tax back off my normal job?

n.b. that since the ABN job is only for a couple of months and a couple of hours each weekend, I'll be earning in total less than $500 from it (i.e. it won't push me over the tax-free threshold).

Thanks for any help

 

[townie]

Well, firstly, i'm not sure if ur entitled to an ABN per se

You are not entitled to an ABN if any of the following statements are true.

Your activity is carried out as an employee or in connection with earning payment as a company director, office holder or under a labour hire arrangement.
[An employee is a person who receives a salary or wage in return for work or services rendered.

You are not considered an employee for ABN registration purposes if you have your own business but also receive a salary or wage from an activity related to your business.]

Your activity is a private recreational pursuit or hobby.
Your activity is conducted as a member of a local government body, for example, as an elected member of a city, town or shire council.

soure:http://help.abr.gov.au/content.asp?doc=/content/16985.htm

it sounds like what your doing is a labour hire arrangement

but if u did get an ABN, u can get one here, https://abr.gov.au/abrweb/default.aspx?pid=90&sid=1&outcome=2&scripting=true&cookie=true

but to get one u need to like, be your own bussiness, sure they didnt say TFN?

i would suggest that if u do end up getting paid under an ABN u will probably be better served gettting an accountant to do ur tax return, or seek their advice, or contact the ATO directly www.ato.gov.au

 

[adamsaclown]

thanks for the reply. yeah it sounds like I shouldn't be entitled to an ABN which is why I'm a little confused.... but my friend has got one and she says the other people who do this work have also got one.