Tax returns for people with their own ABN

Usually a sore subject, some companies that you work for will ask you get your own Australian Business Number (ABN), they’ll pay you an amount and it’s up to you to sort your own tax out. This is not the right way in most cases and is simply done because the employer is too lazy to go through the administrative work of payroll. One of the first questions the ABN application asks you is “do you run your own business?”. If the answer is no (most commonly the case) then you are not allowed to apply for an ABN.

But we get a lot of people who had no choice but to get an ABN to be paid.

So what happens to these earnings? Basically it needs to be included in your tax return together with any other income (such as your income from employment or interest) after the end of financial year (June). When you lodge your tax return, all your income will be added up and the tax will be assessed based on the combined income. If you are a full year tax resident and if your total income is below $18,200, you don’t need to pay any tax – meaning you get a full refund of tax you paid during the year. If you earned over the tax free threshold then you will either not get all your tax back or even have to pay more tax as a result of your Australian tax return.

Our biggest tip is to stay organised and keep:

  • Invoices that you issued for your work
  • Receipts for the things you had to buy for work
  • Your ABN and
  • The address your ABN is registered at.

 

If you want to know how much tax to put aside, check our other blog post.

Need to sort out your tax return? Apply Online with us now (you don’t need to be a backpacker).

If you have an enquiry about BAS or just anything else please contact us.

228 Responses to “Tax returns for people with their own ABN”

  1. Anthony

    Hi
    I worked on abn from April 2008 to around April 09. I earned on average $900 a week for about 10 months of the year. I was away travelling in between. I have no idea how to calculate what I owe in tax.
    Any help would be appreciated.
    Thanks

    Reply
    • David

      Hi there, Thanks for your question.
      If you earned around $900 per week, across 10 months, this equals around $36,000 in total.
      The tax payable on that amount would be around $4080.
      You can reduce the amount of tax you need to pay by gathering receipts you have for any work related equipment/tools which you brought during that time.
      Hope this helps,
      BB

      Reply
  2. Louise

    Hi,

    If I get an ABN, is the money i earn from non-ABN work (such as a part-time, weekly job) affected by the ABN number? Will i have to work out the tax for every job i do or just the companys i give my ABN too? Someone told me once you get an ABN it effects the tax you pay on all your jobs… so you end up paying more tax.

    Any help would be great!
    Thanks,
    Louise

    Reply
    • David

      Hi Louise,
      The easiest way to look at ABN earnings is that you’ll have to pay tax on them at some stage!
      When you submit a tax return all your gross income and tax paid will get lumped together and the overall amount of tax you need to pay/get refunded will be calculated.
      So if you intend on earning lots of money on your ABN you might want to put some aside for tax at the end of the year.
      The rate of tax which is taken from your earnings during your ‘normal’ pay as you go type work is decided by the answers you give on your tax declaration form which you complete when you start working somewhere…you might want to tick that the job is not your only job and that you don’t want to claim the tax free threshold on it. Doing this will mean you pay a little more tax on your earnings on your ABN work and will lighten the bill at the end of the financial year.
      It really depends how much you will be earning overall as to the outcome…if you earn under $13K then probably there will be no tax to pay AT ALL.

      Hope this helps?
      Dave

      Reply
  3. Ainhoa

    Hello,

    I worked on ABN 1 month in a hotel. I earned $1725,25. I have no idea how to calculate what I owe in tax and how can I do. I earned under $13K but I need to do anything? Because I don’t want to work more with ABN.

    Also, my friend is working for one year and he is earning $960 per week. How much would have he pay in tax? How can he know?

    Any help would be appreciated.

    Thanks in avance.

    Reply
    • David

      Hi, Thanks for the question.
      The rate of tax which you’ll need to pay will depend on your tax residency status:

      If your total gross is $13K then you’d need to pay approx $560 in tax if you were a non resident. But nothing if you were a resident.
      As you’ve finished working on your ABN you should cancel it with the tax office and declare the income earned when submitting a tax return either when you leave Australia or at the end of June.

      If I multiply your friends income by 52 weeks in the year it comes to $49,920 total, the rough tax on this is $8268, so this is what they should expect to pay. They can do this by declaring the income in their tax return at the end of June, then the ATO will send back a payment request.

      Hope this has helped…

      Reply
  4. Moula

    Hi there,
    I am working on my ABN and TFN. on my TFN i am not allowed to work more than 20 hrs and my employer cut the Tax from my pay. But for my ABN i earn around $3000 per month. Now how much roughly do i have to pay for my ABN and can i make any installment for the payment? I would appreciate your help.

    Thanks
    Moula

    Reply
    • David

      Hi Moula,
      You’ll be looking at paying 19% tax on all earnings once you go over $18,200 in total (TFN & ABN work put together), but up until that point you won’t have to pay any tax (as long as you’ve been here long enough to be a resident for tax purposes).
      You declare and pay the tax at the end of June in your tax return so make sure you keep your invoices handy…

      Regards,
      BB

      Reply
  5. daniel murray

    I earn around $90 000 a year from one of my jobs and I also work casually on farms and earn another $20 000 both of them are run through my TFN . would it be any advantage working casually under an ABN to lower my tax bill

    Reply
    • David

      Hi Daniel,
      Not really, you have to declare the income on earnings under your own ABN at the end of the tax year- so it all comes out in the wash…

      Reply
  6. Lucy

    Hi

    I earn 20 per hour and working on ABN not TFN. I am on a student visa. what amount should be my tax at the of the year and how to calculate it ? how much can i get back as shown receipts of goods that i bought ?
    Kind Regard
    Lucy

    Reply
    • David

      Hi Lucy,
      If you’ve been in Australia for long enough then you’ll be a resident for tax purposes here in Aus and then you’ll receive a tax-free threshold and so will not have to pay any tax until you earn over approx. $17K per annum. If this is the case then you won’t need any recepts etc. as no tax will be payable.
      Regards,

      Reply
  7. Luke

    Hi,

    I have currently finished working as an employee on $45,000 inclusive of super, and started working as a sole trader with an ABN for my boss. The agreement I have is to be paid $45,000 per year including super + GST. resulting in charging him $49,500 per year. I invoice my boss $4125 per month.

    I am trying to work out how much better/worse off i am per week. I can’t get my head around the super side of things.

    Can you please clarify how much I will be making (net) per week? As an employee it was $686.83… I would like to be able to compare.

    Thanks,

    Reply
  8. Bill

    Hi,

    I am a foreign student from Vietnam. I have been in Melbourne from 24-Feb-2013 to 30-June-2013. I have work under ABN this time, maybe from 15-March to 21-June. I have earned about $10000. Do I need to pay tax? If yes, how much I need to pay. Also, because I will leave Melbourne at 30-June-2013, so how can I declare tax?

    Reply
    • David

      Hi Bill,
      Thanks for the question, if you are a non-resident for tax purposes here in Australia then you’ll need to pay 32.5% tax on all income, so the tax bill will be approx. $3250. You can declare this by submitting a tax return at the end of June.
      Regards,

      Reply
      • Bill

        Thanks David for your reply. I have one more question. I know that financial year will be from 1 July to 30 June. I have one problem that when I come back Vietnam in 30 June 2013, I will have 2 week salary will be paid in 15 July 2013. Could I declare this income in 2012-1013 tax return or I must wait for tax return 2013-2014? Because I will not come back Australia, at least 3 years, so I would like to cancel my ABN. So I want to finish everything before I cancel my ABN.

        Reply
  9. Rachael

    hi,

    my friend has been working with an abn for 2 months now and we are both unsure on how much tax he should be paying weekly he earns $800 a week.. can u please help us work this out??

    thank u

    Reply
    • David

      Hi Rachael,
      If he’s a resident for tax purposes then there’ll be no tax to pay on the first $18K he’s earned, if he’s a non-resident then he’ll need to pay 32.5% tax on ALL INCOME

      Regards

      Reply
  10. annie

    Hi David I am an Australian Citizen and have an ABN.I earn under $18,000.
    I know that I don’t have to lodge a tax return as I am under the threshold but how do I go about claiming fuel, stationary and products that I use for my line of work if I am not lodging a tax return? Also do I have to let ATO know that I am not lodging a tax return. We also receive Family Tax benefit A & B, But I have advised them of an estimate for me as the lower income earner than my husband, so that side of things is sorted.
    I look forward to your reply.
    Thanks πŸ™‚

    Reply
    • David

      Blimey Annie,
      If you’ve worked then you have to lodge a tax return πŸ™‚
      If you’ve earned under the tax free threashold then there will be no tax to pay…and I think therefore no point claiming any deductions as there’s no tax payable to reduce.
      I hope this has helped a bit?
      Regards

      Reply
  11. Andy

    Hi,

    I worked for 2 months earlier this year on my ABN and earnt $2200. I then started work on my TFN for a company 4 months ago and will be filing for a tax return for the tax I paid through them. Do I need to tell the ATO I earnt $2200 on my ABN in my tax return. In the past 4 months I’ve only earnt $5500 on my TFN. I am Australian for tax purposes too. Not sure how to go about my ABN taxes… Thanks in advance..

    Reply
    • David

      Hi,
      Yes declare it, you wont have to pay any tax anyway.
      You should get all the tax you paid on TFN back regardless.
      Get it all in at the same time by doing a tax return which declares all income πŸ™‚

      Reply
  12. Kaushal Patel

    Hi,

    I worked in one job and got 50K and I was working with another company on my ABN. I earned around 50 K from my second job. On my ABN I hired a person and he was working instead of me as I was just looking after the paperwork and legal stuff. I am not sure at the end of the year how does the tax work out? I appreciate your time and effort.
    Thanks.

    Reply
    • David

      Hi there,
      This one’s too tricky for a quick answer- sorry
      You’ll need to pop on down to your local accountant and have a chat.

      Regards

      Reply
  13. Anika

    Hey,

    I earn $8,064 a year but I am also a international student. I hold a ABN number and work as a individual trader as a junior behavioural therapist.

    Do I owe any tax? If I do then how and when should I go about paying it?

    Thanks

    Reply
    • David

      Hiya,
      IF that’s your total income (PAYG and ABN) then no tax will be owing on $8064 as long as you are a resident for tax purposes, (if your course is over 6 months you’ll be fine).
      You can do a tax return and declare both lots of income at the same time.

      Reply
  14. Amit

    Hi
    I’m non resident I worked on ABN from 1st January 2013 to July 31st and I fortnightly earned about $1975.00 after GST(ABN register with GST)….. So can you please tell me how much I have to pay for my tax aprox…..
    I would be much appreciate …thank a lot for help mate.

    Reply
    • David

      Hiya,
      If non resident for tax purposes then 32.5% tax = approx. $642 tax
      If resident for tax purposes (could well be as you were here from Jan 1st) then no tax to pay on first $18,200 = $0 tax πŸ™‚

      Reply
  15. Marek K

    HI David,
    I am working on TFN at this moment. Im a resident for tax purposes. I know that Im not gonna pay any tax under $18k.. Im thinking about working on ABN and have no idea how to connect those two together. I don’t know how much Im going to make on my ABN but would like to know what % I will need to pay working on ABN. How about Super working on ABN? So for example if I want to earn $25ph how much I need to charge the company?
    Thank you so much for your advise!

    Reply
    • Kwan Oh

      Hi Marek,

      Please see my answers below.

      >I am working on TFN at this moment. Im thinking about working on ABN and have no idea how to connect those two together.
      They both need to go into your tax return and the tax will be calculated based on the total.
      You?ll need to total up the income from both TFN and ABN to get your total assessable income.

      >I don’t know how much Im going to make on my ABN but would like to know what % I will need to pay working on ABN.
      Tax is calculated based on your income. Please refer to the table below for the current tax rate.

      Individual resident tax rate 2013-14
      Taxable income Tax on this income
      0 ? $18,200 Nil
      $18,201 ? $37,000 19c for each $1 over $18,200
      $37,001 ? $80,000 $3,572 plus 32.5c for each $1 over $37,000
      $80,001 ? $180,000 $17,547 plus 37c for each $1 over $80,000
      $180,001 and over $54,547 plus 45c for each $1 over $180,000

      >How about Super working on ABN? So for example if I want to earn $25ph how much I need to charge the company?
      You are basically self-employed when you are working under ABN and it is not required to make any contribution to super for yourself.

      When you are ready to do your return, please apply through the link below so that can sort it out for you.
      http://backpackersbuddy.com.au/affiliates/applications/yourdetails/20

      Reply
  16. Emily Whiting

    Hi David,

    I am trying to do my first tax return (I worked under an ABN on a WHV – I have resident for tax purposes) but finding the etax software IMPOSSIBLE! I don’t know where to start – I’ve really tried! As a side, I earnt 30,511.40 AUD from July 12th 2012 to June 2nd 2013. I have some receipts to also ofset expenses. How much should I pay before expenses and how on Earth should I go about sorting out a return? please help!! Thanks

    Reply
    • Kwan Oh

      Hi Emily,

      Yes, E-Tax is not exactly user friendly and very difficult to navigate through especially when you worked under an ABN.
      If you are looking for someone to do it for you, you can Click Here and apply with us online.

      Reply
      • Sabbir

        I had no idea all of those things were incledud in the income tax. I especially find it interesting that a single person, with a lower wage and no children, has to more than a person who makes a higher income. Granted the higher income option had children in the equation, but still. Crazy I would be spending more in taxes than a family. Interesting little evaluation tool.

        Reply
  17. qasim sheraz

    hi, friends, i m student here and i worked on ABN approximate 3 to 4 months but i don’t know how much i earned on ABN and how much i have to give my tax, is their any way that i can get to know how much i earn nd how much tax i need to pay.?

    Reply
    • Kwan Oh

      Hi Qasim,

      If you were being paid into your bank account, you can go through the bank statement to determine the income.
      Please refer to the below tax rates to get an idea of the amount of tax you’ll need to pay.

      Individual resident tax rate 2013-14
      Taxable income Tax on this income
      0 ? $18,200 Nil
      $18,201 ? $37,000 19c for each $1 over $18,200
      $37,001 ? $80,000 $3,572 plus 32.5c for each $1 over $37,000
      $80,001 ? $180,000 $17,547 plus 37c for each $1 over $80,000
      $180,001 and over $54,547 plus 45c for each $1 over $180,000

      Reply
  18. Antoni

    Hi David,

    I’ve a small issue. My tax return has been already done (only tfn) by my accounter, he told me that I don’t have to show my income from ABN. I realized that he is sneaky and he wanted to cheat the system. I don’t want to have a problem in feature. So could you advice me what can I do now? Is it possible to include my ABN’s income to already done final account? In addition I earned 20 020$ on TFN (I’ve already paid tax) and 1834$ on TFN (not done).
    I am Au resident for tax purposes.

    Cheers,
    Antoni

    Reply
    • Kwan Oh

      Hi Antoni,

      Yes, you can make changes to returns that are already lodged.
      Your accountant should be able to help you amend the original return if you tell him that you want to do the right thing and include the extra income.

      Reply
  19. Sally

    Hi I have worked for 3 months using an ABN the rest of the year I was employed, when doing my tax return do I enter the both incomes in the same column or is ABN earnings entered somewhere else ???? Thanks

    Reply
    • Kwan Oh

      Hi Sally,

      Income earned under an ABN does not go into the same place as the income from employer.
      They need to be shown separately.

      Reply
  20. Debora

    Hi!
    Great website, helps a lot!
    My husband works about 15 hours per week on TAX basis and also has his own ABN (he works from home on his free time). Can he lodge the tax return together? All the income should be put at once or he has to specify where each income come from? Thanks!

    Reply
    • Kwan Oh

      Hi Debora,

      He can only lodge one tax return in one income year in which he needs to declare all income.
      There are different sections of the tax return for different types of income.

      Reply
  21. vikki

    hi David
    I am currently holding a student visa, and I just got a part time job from a company. My employer prefer ask me to apply for an ABN n order to receive my paid. My current rate is $15 per hour. If I work no more than 20 hrs a week, do I need to pay tax each year? Also, since I am not really running on the business, can I apply for an ABN as a employer who holding a student visa? What should I do in this situation? Thank you

    Reply
    • Kwan Oh

      Hi Vikki,

      Usually, the payer does not withhold tax when you work under an ABN.
      It is probably best if you speak to the employer to confirm the work and payment arrangements if you are not sure.

      Reply
      • Hi, I am an international student, just arrived last year February and got a job last December. I am working under a subcontractor and they are paying me cash on hand deposited in my bank account. Should I declare/lodge my tax as an individual this June? Thank you

        Reply
        • Yulia Spilna

          Hi there
          Yes, by law you have to declare your income and lodge your tax return every year.
          Cheers,
          Yulia

          Reply
          • Thanks Yulia., another question.. I just want to know about computing our tax returns, do I need to combined our income(as a couple) or not so I could get how much tax should we pay or do it separately? Thank you

          • Yulia Spilna

            Hi Mj
            Yes, you will have to include income details for your partner as well.
            There is a separate section for it in individual tax return.
            Cheers,
            Yulia

  22. Nick

    Hey!

    I arrived in Australia in August 2012 and worked under and ABN from mid-September through to February 2013, at which point I found a new job on payroll.

    I have filed my tax return via an accountant, though have been waiting for over a month and have received a letter saying my tax has been withheld, and that the ATO are reviewing my return.

    What processes should I have followed/what do I need to do to rectify this and (hopefully) get my tax return?

    Any help would be hugely appreciated.

    Nick

    Reply
    • Kwan Oh

      Hi Nick,

      Every year, the ATO takes a random selection of the tax returns and check if the claims are correct.
      It’ll take some time for that to complete but you have nothing to worry about if you have done the return correctly.

      When you are required to take any actions, the letter should clearly state it.
      Otherwise, all you can do is just wait for them to do their thing.

      You should probably seek help from the accountant that actually prepared the return for a more personalised help.

      Kwan

      Reply
  23. andres

    Hi
    I am a resident for tax porpuses, I worked with ABN from january 2013 until april 2013, in total I earned $ 3608. I did not make a tax return or declaration of my incomes in June. Have I make a declaration or have to wait for some letter or just do nothing?

    thank for your advise

    Reply
    • Kwan Oh

      Hi Andres,

      There are many factors affect the answer to your question and the ATO has a questionnaire that you can take.
      Please follow the below link and give it a try.

      Kwan

      Reply
  24. Jason

    Hi David I am a non resident I have earned 22,000 from october 2012 to June 2013 can you tell me how much I should be expecting to pay in tax,
    Cheers

    Reply
    • David

      Hi Jason,
      You want to be sure that you are a non-resident (it’s for tax purposes, not immigration).
      Non resident with $299 deductions comes to a bill of $7052
      Resident with the same comes to a bill of $336

      Reply
  25. Julien

    Hi David,
    I am in Australia with a WHV and I just started to work for an Italian company (not present in Australia) with an ABN. I am about to sell a service for them to Australian companies and everything is done from Italy, so I am just an intermediary that sale, collect the money but If I’m right I will have to pay all the taxes for them in australia right? I am lost with the tax system. I don’t know what status I should get with my abn (indepenent contractor, sole trader…)? I also have a job with my tfn on the side, is it gonna affect my taxes for the TFN? How much tax should I pay to the government? what is the Pay as you go?
    Can you help me enlighten some points please?

    Thanks

    Reply
    • Kwan Oh

      Hi Julien,

      It’s a tricky one actually, too tricky to be answered in a online forum like this.
      The answer will depend on many things like your residency and how the whole pay thing is organised.

      I would probably sit down with a local accountant and have a chat if I were you.

      Kwan

      Reply
  26. neil

    hello, i’m a musician and invoiced a client for a gig i was hired for. my abn was on the invoice, how do i sort this out when doing my tax? i was paid $1100

    thanks

    Reply
    • Kwan Oh

      Hi Neil,

      That income forms part of your normal tax return.
      Keep the invoice and show it to the accountant when you do the return next July.

      Kwan

      Reply
  27. Dave

    Hi there,

    I worked on ABN for about 6 months with a building company when I first moved here from NZ, and am now working on TFN. I have not kept any invoices or receipts from the ABN – real bad I know, but it was brand new to me and I didn’t understand the system, let alone care for me to read up and study it.

    What happens now when I go to file my tax return? What will the agents ask of me? Will they just take my word that I earnt about $500/week or will they assume I earnt more?
    I really need to file for my tax return to claim for family assistance, but not sure what will happen when I do, so I want to be prepared for what they’ll say I need to do etc.

    Thanks for your help

    Reply
    • Kwan Oh

      Hi Dave,

      Were you being paid into your bank account?
      If that’s the case, you can just go through the bank statement and circle all the payment you received.
      If it was in cash maybe you can contact the payer for the details.

      Good Luck!

      Kwan

      Reply
  28. hi,

    I worked in a factory (on TFN) from july 2012 to oct 2012 and then worked in a courier company (on ABN) from jan 2013 to june 2013. I already filed my tax return but did not add income details from courier work because I thought financial year for ABN holders is different. What should I do now? please guide me.

    Reply
    • Kwan Oh

      Hi Bal,

      The income from the courier work need to be included in the 2013 tax return.
      You can still make changes to a lodged return through amended tax return.

      I’d suggest to ask the tax agent who did your original tax return to sort it our for you.

      Kwan

      Reply
  29. rocky

    Hi david,

    I’m an international student and have been working on ABN since march 2013. I didnt know that I had to file taxes in June then. Now I want to file tax for the last financial year. Will it be a problem, will I be fined for not filing until today?

    Kind regards,
    Raj

    Reply
    • Kwan Oh

      Hi Rocky,

      Your tax return was due at the end of October so there is a small chance of you being fined.
      You should get it sorted as soon as you can before the tax office impose any fines.

      Kwan

      Reply
  30. Rando

    When Im working holiday visa holder, do I have to pay taxes if I earn less than 18k per annum with my TFN and ABN number together?

    Reply
    • David

      As long as you can be classified as a resident for tax purposes then you will not have to pay any tax on earning under $18K all up πŸ™‚

      Reply
  31. hi, i used my ABN this year for a casual jobs around $2000
    and now I’m using my ABN for 3 months job full time 20$ p/h around $3000 per month
    so at the end it will be $11.000
    I’m in a temporally resident, should i have to pay any tax for that amount?
    thanks

    Reply
    • David

      Hiya,
      If total earnings are under $18,200 and you can be classified as a resident for tax purposes here then you need to declare the income by lodging a tax return- but you will not have to pay tax on the income πŸ™‚

      Reply
  32. Miwbah

    I am working on ABN and provide an invoice to my contractor on weekly basis. Do I have to split my invoice into Gst and charges separately or just one whole figure is enough.
    Secondly do I need to pay GST on top of Taxes or simply taxes. My approximately yearly earnings are around 40K.

    Reply
    • David

      Hiya, here’s an example which I hope will help you with the answer:
      ? Example: Wages and business income
      Nguyen is a qualified electrician. He works part-time as a salesman at an electrical wholesaler, earning $40,000 per year. The rest of the time he runs his own business as an electrician, doing jobs on customer premises and at his workshop. He expects the business to bring in another $40,000.
      Nguyen’s GST turnover from his business is less than $75,000, so he doesn’t have to register for GST.
      Nguyen registers his business for an ABN but decides he won’t register for GST. This means he doesn’t include GST in his fees and can’t claim GST credits for his business purchases.

      Reply
  33. Wang

    hello
    i am international student and i have started working on ABN from 3-10-14 till now, i ahve earned around $4312 and now i want to cancel my ABN, so do i have to pay tax before i cancel my ABN, if so then how much i have to pay?, and can u please tell me the difference between TFN and ABN in terms of their tax percantage.? thanks

    Reply
  34. Gordon Bailey

    Hi I’m working on ABN and earning around $800 a fortnight how much tax would I have to pay as I have no clue

    Reply
  35. Rachel

    Hello I just started my ABN number to start a business in kids. I haven’t started yet , but don’t think I’ll earn much from it per week. Maybe. $100. What do u need to do with tax??

    Reply
    • Kwan Oh

      Hi Rachel,

      $100 per week would be about $5200 per year.
      Assuming that your are tax resident and have no other income, you won’t have to pay any income tax.

      Kwan

      Reply
  36. Anne

    Hi is it compulsory to lodge ABN every year or can we lodge once in 3 years and 5 years..

    Reply
    • Kwan Oh

      Hi Anne,

      I think there is some confusion here.

      ABN is not something that you lodge, it’s just a number to identify your business.
      Tax return, however, needs to be lodged every year to declare your income including your business income using an ABN.

      Kwan

      Reply
  37. monique

    Hi

    I had an ABN about 10 yrs ago and cancelled it about 8yrs ago. I have just received a bill from the ato for approx $5,000 for not lodging a BAS statement. Why is this happening if i no longer have an abn?

    Reply
    • Kwan Oh

      Hi Monique,

      That would be something that you need to call the tax office to find out.
      Please contact them on +61 2 6216 1111.

      Kwan

      Reply
  38. Hi, my brother has just started working for a brickie who has asked him to get an ABN number. He has been told he will be paid $22.50 per hour. We do not have a clue how this all works?? does he have to have a time sheet etc.? How will he know how much tax to set aside for? He is super forgetful and doesn’t understand how he is to do this? As am I? Is it worth it. Much appreciate any advise

    Reply
  39. I earn atleast $1000 a week on a new abn. I have no idea what to do with paying tax. Could you help out please. When and how do i pay my tax

    Reply
  40. Jackie

    Hi my brother has a TFN and is working. He makes about $870 a week. How much tax will he have to pay and does he have to pay at the end of the year or can he pay weekly. Also how much would he pay weekly. Thank you for your help.
    Jackie

    Reply
    • Kwan Oh

      Hi Jackie,

      Assuming that he is a tax resident, he should put aside approximately $127 each week to meet his tax obligation at the end of the year.

      Kwan

      Reply
  41. Michael

    Hello.

    I wil arrive in australia on a working holiday vias. Is it so that if i have a ABN that i can earn $18.000 whitout having to pay tax?

    Reply
      • michael

        I do not think I ate am a resident of australia because I’m backpacking . The employer where I can work asks if I can apply for an ABN . The work would earn $ 18 per hour. What do I have to pay extra tax this is not entirely clear to me. what remains of the $ 18.

        Reply
        • Kwan Oh

          Hi Michael,

          The employer will give you the full $18 but you need to put money aside to pay for tax at the end of the year.
          If your are non-resident, the tax rate would be 32.5% up to $80,000 per year.

          Kwan

          Reply
  42. Hi, hoping you can shed some light on my situation. My husband has been working for a company for 7 months now earning approx 1000 a week. Only recently has his employer said that he does not pay his tax and his pay needs to go through his abn as he was hired as a sub contractor (which my husband was not aware of). My husband has no abn and now im very concerned we owe a lot of money. Do we need to apply for an abn now and then pay the tax? He does not get pay slips the company just deposits his pay each week into our bank account. A very confusing situation we are in. Any help would be great. Thanks

    Reply
    • Kwan Oh

      Hi Ash,

      Yes, unfortunately, you are right.
      If your husband is working as a sub-contractor, he is running his own small business in effect.

      He should get an ABN and try to put money aside for tax.
      Please estimate the yearly income apply to the tax table from the link below.
      That’s what you’ll need to have by the end of financial year.
      https://www.ato.gov.au/Individuals/Income-and-deductions/How-much-income-tax-you-pay/Individual-income-tax-rates/

      For next year, the tax office will probably send you a letter asking to pay tax quarterly so you don’t get a big bill at the end like this year.

      Hope this helps.

      Kwan

      Reply
  43. Tony

    Hi I have a question, because I’m not using my Abn anymore I’m wondering if there’s any way to just look up online or find out if someone else is using my Abn or if my Abn has been used to pay wages

    Reply
      • Javier

        What happen if someone who knows my ABN number invoice their boss using my tax number without telling me or make know so that they pay less taxes and the they charge their taxes to me…. What can i do if i find out that situation… Can i appeal and say somebody try to cheat me…

        Reply
        • Kwan Oh

          Hi Javier,

          If you are working under ABN, your employer is not likely to withhold tax from you.
          If you suspect that someone else is using your TFN, you should report it to the tax office.

          Kwan

          Reply
  44. Tony

    And another one also if i have earned just around 2000 $ with my Abn and work a full year with a tfn nr do I still have to declare something or pay tax for my Abn as well or is there any limits for that
    Thanks

    Reply
    • Kwan Oh

      Hi Tony,

      Yes, you will need to declare your ABN income in your tax return and pay tax accordingly.

      Kwan

      Reply
  45. Shan

    Hello bill.

    I’m starting to work 20hrs a week on 60$ph at ABN. How does this work for paying my taxs back. Thanks Shan

    Reply
  46. Laura

    Hi..
    Im international student and I work with ABN
    I earned about 12,000$
    Do you know If I have to pay and how much?

    Reply
    • Kwan Oh

      Hi Laura,

      Assuming that you are a resident for tax purpose and $12,000 is the total income for the financial year, you shouldn’t need to pay any tax.

      Kwan

      Reply
  47. Tara

    My partner earning $4894 for a fortnight on his ABN how do we work out how much tax we need to pay?

    Reply
  48. Jack

    Hi there,
    I am currently working under an ABN, and i have only earned $17,000 to date this financial year, I will be earning approximately $1,100 a week for the rest of the financial year. After i breach the tax free threshold next week what are my estimated weekly tax payments going to be? I am an Australian citizen. Any information will be greatly appreciated.
    Thanks in advance, Jack

    Reply
  49. Oliver

    Hi I earn 70,000 per year.
    I recently left my full time job for a couple of weeks and freelanced on my ABN, earning $4023.
    I want to make sure I put enough aside for the tax man.
    How much of the $4023 do I need to put aside, to be on the safe side?

    Many thanks! Oliver

    Reply
  50. kerry

    hi David,im part time worker.But also a Table Tennis Coach. i coach once i week.only $50 per week.but the club need an ABN Thats why i register on 12/03/14. in the tax return i forgot to declare to ATO. what should i do?? need your help thanks

    Reply
    • Kwan Oh

      Hi Kerry,

      You should have declared that ABN income in your tax return.
      What you need to do is to amend the 2013-14 tax return to include it.

      If you like us to sort it out, please get in touch on [email protected]

      Kwan

      Reply
  51. Leigh

    Hi my partner earns $1500 weekly how
    Much tax will he need to pay? Also how do you pay the tax?
    Thanks

    Reply
  52. Jacob

    Hi,

    I have been working under an ABN and issuing tax invoices to the same business. (Officially as a contractor, but really as an employee).

    What are my tax obligations given the circumstances?

    Also, with work related purchases, am I allowed to claim these to reduce my tax payable? If so, how would the deductions work?

    Is it the GST claimed from the work related purchases? is the total amount of the receipt removed from my assessable income? Not sure how it works.

    Thank you

    Reply
    • Kwan Oh

      Hi Jacob,

      You?ll need to pay tax on your income when you do your tax return.
      Please put aside some money so that you’ll have enough cash.

      You can estimate your income for the whole year and apply the tax rate from the link below.
      https://www.ato.gov.au/Individuals/Income-and-deductions/How-much-income-tax-you-pay/Individual-income-tax-rates/

      That?s approximately what you need to have put aside by the end of the year.

      Deduction also goes into your tax return.
      Please keep the receipts as proof.

      You don’t need to worry about GST unless your income is $75,000 or higher

      We can help you lodge your tax return, please email us after the end of financial year when you are ready.
      [email protected]

      Kwan

      Reply
  53. Narry

    Hi,

    It’s regarding the income year 2012-2013, at that time I worked on TFN and tax was withheld as per the PAYG statements. During this time I also worked on ABN (driving Cab) for four months but didn’t registered for GST as I was not aware of and later on I left Australia due to visa expiry.

    My query is my total income (ABN+TFN) for income year 2012-13 was under 7000$, if I want to lodge my return now would I have to pay any penalty on ABN income for not registering for gst/ or filling BAS statements?

    Secondly, I didn’t cancelled my ABN at the time of leaving Australia and now it’s been more than 2 years, can I cancel ABN now ? this delay in cancellation will cause any specific issues?

    Thanks in Advance

    Reply
    • Kwan Oh

      Hi Narry,

      If your income was only $7000, you shouldn’t need to do BAS or register for GST.
      You usually don’t get penalised for doing your tax return late but you can be penalised if they catch you before you do it.

      I can sort out your tax return and cancel your ABN.
      please get in touch at [email protected]

      Kwan

      Reply
  54. kelly

    Hi David,
    Its nice to find a site like this as it helps a lot of international students like me.
    My question is, i am working on. ABN for a year now. I earn $680 fortnightly as a school cleaner.
    then i started working on TFN as a casual factory worker and paid $20/hr.
    I read one of the same case above and you said that the ABN and TFN will put up together.
    I just got confused, will i just pay tax for my ABN job?
    Thanks a lot.

    Kelly

    Reply
  55. Hi,

    I am australian citizen and work both tfn and abn. When filling tax return, do they tax me for the combined income of will i be taxed seperately for my abn and tfn incomes?

    Reply
    • Kwan Oh

      Hi Dom,

      You should be taxed on the combined income.

      Kwan

      Reply
  56. Jinoos

    Hi

    I work for a company $1000 per week from 1/1/15 they pay my tax by TFN number and also I work for another company from 1/1/15 1500$ per week ,they don’t pay my tax and also I don’t get payslip ,only they deposit my account.I have 2 questions should I have payslip for tax return ?I should give them invoice? How can I get my ABN number and I don’t like to postpone my tax to the end of the year so what should I do ?is the second company responsible for my superannuation because I don’t know they pay it or not ?
    Many Thanks

    Reply
    • Kwan Oh

      Hi Jinoos,

      You’ll need to have a chat with your second employer and confirm the work arrangement.

      If you are working as an employee, they need to pay your tax and super.
      If you are working as a contractor, they don’t do either – you need to put some money aside so that you’ll have enough money for tax.

      Kwan

      Reply
  57. Ryan

    Hi,

    I’m an international student and i’m registered in ABN (without GST). I worked last year month of Maay for about 3 months and only got an income of less than $1500 in two months with 10% deduction of not registerd in GST. Now i’m not using my ABN for about 7 months and I want to cancel my ABN but i did not declare any tax income for I didn’t know anything about that because my employer keeps telling me that I don’t have to pay for income tax or anything.

    Is this will cause me any trouble? And I want to cancel my ABN because I’m not using it anymore.

    Thank you.

    Reply
  58. Amba

    Hey,

    I’m english and have been in Australia for nearly 3 months on a working holiday visa. I will have earnt roughly $1000 through freelance promo work by the time I leave (in a week). I won’t be paid for this work into my Australian bank account for another 3-4 weeks. Will I have to pay tax? Do you know how much? Will I be asked at the airport to pay or confronted about it?

    Any help is much appreciated

    Thankyou!

    Reply
    • Kwan Oh

      Hi Amba,

      It is not something that you will get confronted in the airport for.

      However, you are required to pay 32.5% tax on your income as non-resident of Australia.
      You’ll need to lodge your tax return in July and pay the amount owing to the tax department.

      Kwan

      Reply
  59. Nicholas

    Hi David,
    My employer asked me to apply for an ABN to become a sub -contractor rather then an employee, in this case do i have to register as a company too? Issuing just hand written invoice is it good enough?
    If the annual income I received under my ABN does not exceed $75000, so I don’t have to register for the GST,right? Am I have to do the BAS quarterly ?

    Does it matter if I receive income from the same business? and it pays me cash but not through the bank for the work under ABN?

    What are my tax obligations given the circumstances?
    sorry for having so many question, thank you.

    Reply
    • Kwan Oh

      Hi Nicolas,

      Please find my answers below.

      >do i have to register as a company too?
      No.

      >Issuing just hand written invoice is it good enough?
      Yes.

      >If the annual income I received under my ABN does not exceed $75000, so I don’t have to register for the GST,right?
      That’s correct.

      >Am I have to do the BAS quarterly ?
      No, but you may be required to pay tax quarterly from next financial year.

      >What are my tax obligations given the circumstances?
      You need to include your ABN income in your personal tax return and pay tax on it accordingly.

      Hope it helps.

      Kwan

      Reply
  60. SANDY

    Its me sandy. i have been working in ABN since three month.. Till this date I have earned 15,000$ in ABN. Now i don’t want to use ABN anymore. So do i need to pay the tax for what i have earned ?
    I am dependent of the international student. My wife is currently studying bachelor. Please advice me if it harms my history or it makes any issues in the future if i cancel ABN after earning 15,000$.
    Many thanks
    Sandy

    Reply
  61. steve

    Hi I’m on 30 hour abn.how much tax do I pay a week.i do 45hours aweek

    Reply
  62. Reilly

    HI there,
    My partner is labouring and needs to use his ABN.
    he is being paid Cash, however the person hiring him is claiming on his tax.
    Considering he is earning less than $75000, and does not claim GST, does he need to do a BAS, or just claim this as PSI on his normal tax return.
    Thanks

    Reply
    • Kwan Oh

      Hi Reilly,

      Thanks for your enquiry.

      The answer to your question requires a closer assessment and it’s too in-depth to discuss in the comments unfortunately.

      We’ll be able to help you if you decide to use our services for tax returns or BAS lodgements.
      Let me know if that is something you are interested in and we’ll go from there.

      Kwan

      Reply
  63. Genz

    Hi, I am on a 572 student visa and I ve been working with my ABN for 10 months, my yearly income at the end of june 2015 will sum up to around 50k. Could you tell me how much tax would I have to pay on it? I havent kept any receipt for fuel or tools so I wont be able to claim those things but do you know if it posible to claim any other kind of expenses like rent, o car rego or something like that? Also, do people in student visa pay the same tax as full time workers? Cheers!

    Reply
  64. Mary

    Hi
    I am working with abn, as a independent contractor, I have been working for 10 months, I am not sure but I already earned more than $18.000,so how many percent do I have to pay tax, thanks

    Reply
  65. Danni

    Hey Kwan, can you help me out?

    I’ve been working on some projects that I thought were just hobbies, but in retrospect and now having made some money on them with the intention of continuing to make money, I realise constitute the beginnings of a small business.

    What I’m worried about is, if I get an ABN, when it comes to tax time do I declare the earnings and the expenses I accrued from BEFORE the ABN was issued (but which are still in the same financial year), as well as those that came after, or are these basically not relevant? β€ͺ

    Maybe it’s obvious, but I don’t want to get in trouble for claiming any expenses incorrectly.

    Thanks for your help! πŸ™‚

    – Danni

    Reply
    • Kwan Oh

      Hi Danni,

      You don’t actually need an ABN to operate as a business.
      Please keep record of your earnings and expenses from the time you think you started running a business – it’ll need to go into your tax return.
      It will not matter whether or not you had an ABN at that time.

      Kwan

      Reply
  66. Gaetano

    Hi, I’m working with an abn and I earned almost 50K, but I spent 15k for a ute, 2k for tools, plus 350$/m for insurances and other 5k for different staff. So what kind of discount do I have in my situation? Thanks for your attention
    Regards

    Reply
    • Kwan Oh

      Hi Gaetano,

      Thanks for your enquiry.

      We’ll need to go through the details of each expense items to answer your question and it’s too in-depth to be discussing in the comments.
      Please come back to us in July and we’ll sort out the tax return for you.

      Regards,

      Kwan

      Reply
  67. Hi I am working abn I am earning 3500 weekly I am pay my Gst very three month how much I need to pay tax can we calm Gst amount when we clam tax I am bit confuse when I pay Gst I clam expensive so when I clam for tax return can I clam my expensive or just I need to pay ful tax

    Reply
    • Kwan Oh

      Hi Pam,

      Thanks for your enquiry.

      It will be a specific advice on your tax return and BAS so not something that I can help in the comments but we are more than happy to help.
      If you need us to sort out your BAS and tax return, please get in touch:)

      Kwan

      Reply
  68. Natasha

    Hi.
    I’ve been working with my ABN and TFN this year. I’ve early around $40000 on first job and have currently $8500 tax withheld.
    However with my ABN number I’ve earnt around $9000 does this get added to my overall income in which I pay tax on in total ? Or do I have to submit a seperate tax return?
    And roughly how much would I have to pay ?

    Thanks,
    Natasha

    Reply
  69. daniel

    Hello,

    My question . If I worked on ABN for a time and I earned $13.263,5 in total. I have no idea how to calculate what I owe in tax and how can I do. I earned under $18.200 but I need to do anything? Now i startet a Job with the TFN and i dont come over the 18.200$ in this financial year. (July 14 – June 15).

    I am now in Australia since middle of November 14 and stay here to end of August 15. So can I do it as resident ?

    What I have to do ? Can you help me with my tax Return ? And How much coast this?

    Any help would be appreciated.

    Thanks you very much.

    Reply
  70. daniel

    More infos I am at the moment around 200 days in Australia without leaving. And I am here with the working holiday visa . When I leave Australia back to germany I was here around 250 days without leaving. I was working before only with ABN (13.263,5$) now with tfn first payslip for around 2 weeks (1039$ before tax) so I might at the end of the financial year at around 16.000-17.500$. How much tax I have to pay ? And how much coast your help with the income declaration/tax back? Payed Tax at the and of the financial year must be by around 1300$.
    And can I post your website on backpacker groups ? Because a lot of other people have questions. Thanks.

    Reply
  71. daniel

    Maybe i stay Here one year more because i do my farmwork for the 2 year Visa at the Moment .
    So i can stay Here to November 2016 and dont have to leave πŸ™‚

    Reply
    • Kwan Oh

      Hi Daniel,

      Thank for your inquiry.

      You should be able to do a tax return as a resident.
      Given that your total income is below $18200, you will not need to pay any tax.

      You are still required to do a tax return and we can help you.
      The cost is $99 as long as it is fairly simple.

      Please email me in July and we’ll sort it out.

      Kwan
      [email protected]

      Reply
  72. Suzi

    hi there..

    I have worked on an ABN part time this finical year and earned $29,957.94
    I have worked employed part time as well and earned: $19,894.50 which I payed $2033.00 tax over.

    What will I have to pay when I apply for my tax end this financial year?
    I have a few expenses such as flights i used for my work on an ban which I can get tax back on I assume.

    I’m very curious if you could let me know that’s great.
    Much appreciated!

    Suzi

    Reply
  73. Hey I recently started workin for a company and using my ABN number.but my employer is deducting the tax each week for me.any ideas on getting this tax back

    Reply
    • Kwan Oh

      Hi Tom,

      It’s unusual that they are deducting tax when you are being paid on your ABN.
      You may want to double check the arrangement – maybe they’re paying you as an employee on your TFN.

      We’ll be able to help you lodge your tax return to get the money back.
      Please get in touch in July on [email protected]

      Kwan

      Reply
  74. Harcharan

    Is there any way to find out how much one has earned on ABN?

    Reply
    • Kwan Oh

      Hi Harcharan,

      You are paid into your bank account, bank statement would be the best place to start.
      Otherwise, you’ll need to dig out your own records or ask the payer.

      Kwan

      Reply
  75. bruno

    Hi kwan. I worked in a pub gor couple of months and also under my abn for 3 months but altogether for lessthsn $18000 this year. I have been putting money aside for tax for each week i was getting paid under my abn my question is

    Do i have to pay the ato tax withheld each week under my abn and they will send me the money back or simply do not have to pay any tax at all and keep that money?
    Thank you

    Reply
    • Kwan Oh

      Hi Bruno,

      Assuming that you are full year tax resident, you won’t need to pay any tax to the ATO when you do a tax return.

      Kwan

      Reply
  76. Geoff

    Hi I worked Abn 2012 for few months on an hourly rate of $25 on a week I was earning $1000 but most weeks would only get 4 days the problem I now have is I haven’t kept the receipts or my invoices and the company I did the work for had went into liquidation and now doesn’t exist how does this affect me,

    Thanks,

    Geoff

    Reply
    • Kwan Oh

      Hi Geoff,

      If you have not already done your tax return for that year, the best place to start is your bank statement to gather necessary details.

      Kwan

      Reply
  77. Josh

    Hi Kwan.

    I have earnt $42,170 this year and i have $2,746.17 in recipts that i can claim, This isnt including all my fuel recipts.

    After making a claim will i have to pay more on top of this for tax?

    Reply
    • Kwan Oh

      Hi Josh,

      Your taxable income would go well over tax-free threshold so you would need to pay some tax when you do your tax return.

      Kwan

      Reply
  78. heather

    Hi, i earnt about $500 under an abn number, i am on single parenting payments through centrelink, i have just done a thing on the families app and was told it was not able to be procsessed at this time because i need to put in my tax return or a non lodgement tax return. I didnt pay tax on the $500 and didnt think i would need to. Do i need to call the ato and centrelink for this?

    Reply
    • Kwan Oh

      Hi Heather,

      Each year, you need to either lodge your tax return or fill out a form to say that you don’t need to lodge a tax return.
      You’ll need to contact the ATO to get it sorted.

      Kwan

      Reply
  79. Ashleigh

    HI There

    i work full time, this year my earnings totaled $82,000. I did some private work on my ABN on top of this amount, the total came to $2200. D0 i have to include this in my tax return? Will i have to pay tax on this?

    Reply
    • Kwan Oh

      Hi Ashleigh,

      Yes, you’ll need to declare it in your tax return and pay tax on it.

      Kwan

      Reply
  80. Ashleigh

    Hi

    I worked on abn and I earn $734 per fortnight. I have no idea how to calculate what I owe in tax.
    Any help would be appreciated.
    Thanks

    Reply
  81. Hi I have a business sole trader with Abn
    My Invoice to clients worth for the year is $19100
    With out GST
    Material costs $17804.70
    GST $1780.70
    Can you tell me approximately if I have return money from ATO how much is that
    Regards Pantelis

    Reply
    • Kwan Oh

      Hi Ze,

      When you say return money, do you mean a refund from the tax office?
      Have you paid any tax to them so far?

      Kwan

      Reply
  82. Hanna

    Hello!Β 

    I am writing to ask about tax return with my own ABN.
    I earned payment for the company with TFN mainly, and got some commission $600 with ABN. (ABN is currently closed.)

    I want to make sure if I should lodge tax refund for ABN.Β 
    If yes, please let me know how to do it.

    Thank you.

    Reply
  83. Zack

    Hi Kwan,

    I am an international student. This is my fist and only year here and will need to lodge my tax return.

    1. I worked with an employer for two weeks, he made me get an ABN number just to pay $500, I have the invoice from this payment.

    2. Then I changed to a new employer who pays me properly with TFN and Super into my bank account. I have got the payment summary from him for this year and I am ready to file for tax return this year.

    3. I also received a $1000 scholarship from my university to work on a research project. According to the university this amount is taxable.

    According to ATO website since I got paid once with my ABN as an independent contractor I need to use E-Tax software to do my returns. Therefore I have setup MyGov account and linked it to the ATO successfully. I have also completed my tax return section from my payment summary. But I do not know how to include the tax for the ABN $500 and scholarship $1000.

    How do I include these amounts in my return or payment?
    Also since I will be leaving the country soon do I need to close my ABN and TFN number and Bank account?
    Also a separate question can I apply for my Super refund if I plan on migrating to Australia in the future?

    Thank you,
    Zack

    Reply
    • Kwan Oh

      Hi Zack,

      Thanks for your inquiry.

      Unfortunately, we don’t use the E-tax software nor provide advise on filling out a tax return on E-tax.
      If you like to lodge your tax return yourself for free, the best place of contact for any questions would be the tax office.

      If you want to take the hustle out of it and get a professional to do it for you, please get in touch – we are more than happy to help.

      Kwan

      Reply
  84. Hi,
    I arrived in Australia in jan on a permanent visa and have been subcontracting .the gumbo worked for said I needed a ABN. I’ve invoiced him weekly and he’s payed me in my bank. He has recently closed down his company .Do I just lodge a return with the invoices I have gave him ? And how much will I expect to pay of I’ve earn around $35k ?

    Reply
    • Kwan Oh

      Hi Ben,

      You should primarily base it on your bank statement and maybe cross check it with your invoice.
      That way you don’t pay tax on invoices that you actually haven’t received money for (if there was any).

      As a part-year tax resident, your tax payable should be around $3833 before any deductions.
      If you need any help lodging your return, please contact me on [email protected].

      Kwan

      Reply
  85. If I earned under $18200, do I need to both filling out my expenses on e-tax? Or can I just list all my expenses as 0. I’m on an ABN. Cheers πŸ™‚

    Reply
    • Kwan Oh

      Hi Ria,

      If you are full year resident, including any expense won’t not have any impact on the result of the tax return ($0 tax payable).
      You can include it but it will not actually do anything.

      Kwan

      Reply
  86. John Wilkie

    Hi I am a Taxi driver, am over 60 and have an ABN I earn approx. $35,000 a year no other income, do I get the tax free fresh hold before I pay tax ?

    Reply
    • Kwan Oh

      Hi John,

      You should get tax-free threshold if you are Australian resident for tax purposes.

      Kwan

      Reply
  87. Hannah

    Hi,

    I have been in australia a month and i have got my first wage slip. i am meant to get paid gross pay $951.40,it says i have been taxed $287, and net pay $664.40. Is this correct?! Seems like alot of tax weekly

    Thank you

    Reply
    • David Goldsmith

      G’day Hanna,
      That’ll be because you ticked “non resident” on the tax file declaration when you started working with the company. This means they will take 32.5% tax from your pay. As long as you stay at least 6 months within the financial year and do not have a usual place of abode oversees then you should receive a nice tax refund next July…

      Reply
  88. Sergey

    Hi, my wife has been working on ABN for 4 months and she has been getting roughly $360 a month. Does she need to lodge her tax return and if yes, does it work in the same way as for those without ABN, just by going on ATO and lodge application online?
    Another thing is, she is now starting to work as a normal employee on TFN without ABN. Can she still keep her ABN while working on TFN or she needs to cancel her ABN asap?

    Reply
    • Kwan Oh

      Hi Sergy,

      The ABN income goes into the same tax return but goes in a different section.
      Yes, it is possible to do this by yourself through Etax software downloaded from the ATO website.
      If you change your mind and want an agent to do it for you, please let us know – we are more than happy to help.

      It’s possible to have an ABN while working under a TFN but she should cancel the ABN if she does not operates the business any longer.

      Kwan

      Reply
  89. Darius

    Hi,

    I had my own small business which I am working alone now and expected annual turnover to be $200K

    Just a few questions here, sorry I am a newbie to tax here ever since I started my business

    1. Do I need to pay tax every week/month from what I earn from my business or have to paid in a lumped sum at the end of financial year?

    2. What are the approximate tax I need to pay and what is the maximum deductions available for a small business?

    3. I had a ABN which is under sole trader but is not a company, because it is just a small business of mine. Is this legit?

    Thanks

    Reply
  90. Lauren

    Hi,

    I am a contractor working in the allied health field as part of a bigger business.

    I charge my clients a particular fee (although this whole amount goes to the business I contract for) and at the start of every month they keep 50% as a service fee and they transfer the remaining 50% to my bank account.

    As no one will be paying any super on my behalf, I had planned to make independent contributions of around 9% of my earnings.

    My question is in relation to registering for GST. Say I have $6,700 transfered to my account each month (after the business takes their 50% service fee), my annual income will be approx $80,400. If I then choose to pay 9% to super, I will be left with $72,360. After many hours of investigating I am still unsure whether my super contributions will be included in my GST turnover ($75000 to register).

    My contract role uses as ABN to operate. No one is paying any super to/for me. My contribution will be the only super paid each financial year. In the above example, considering my after super contribution salary totals $72,360, will I need to register for GST??

    Reply
  91. Hi!
    I was working by ABN during the last fiscal year, but I left Australia without do the declaration and even cancel my ABN. I can get some penalty? When I was leaving, nobody tell me anything… How can I do?
    I should do the declaration even been out of the country?

    Thanks in advance!

    Reply
    • Kwan Oh

      Hi AH,

      You can be penalised for not lodging a tax return if you are caught.
      Tax return can be lodged from overseas and we can do it for you.

      Please email me on [email protected] if you need help.

      Kwan

      Reply
  92. Hi, I am going to do my tax return for the first time.
    I have both ABN and TFN.
    please explain is it the same and in the same application as it is for those having TFN only?
    Thanks a lot.

    Reply
    • Kwan Oh

      Hi Ann,

      The application process is the same but we need different things each of your jobs.

      You’ll need the last payslip or group certificate for your employment job with your TFN.
      You will not have that for your ABN work so you’ll need to go through your invoices and/or bank statements to work out the total pay.

      Kwan

      Reply
  93. Michelle

    Hi, my partner is on a working holiday visa, he uses his ABN as he is self employed. We have been here about 18 months. On average he has earned $44,000 in the past year. We have approached a tax office to sort our tax out and we have been told he is not a resident for tax purposes because he is using an ABN and is on a working holiday visa. Therefore we have been told that our estimated tax payable is around $12,000. can you please confirm if my partner is a resident for tax purposes and if he should receive the tax-free the tax-free threshold?
    Thanks

    Reply
  94. Nick

    Hey There,

    I’ve had an ABN since April 2011 and have never declared anything. I don’t have a salary or anything. I didn’t really start working constantly as a dance teacher until 2014. But between 2011 & 2013, I worked and still do, as a professional dancer so some weeks I earned less than other weeks as dancing jobs only come up every so often. I don’t think I’ve ever earned over 13k in a year though which is why i never thought about tax and have done nothing about it… I think I earned about 9k last financial year and it will definitely be more for the next financial year… What steps should I take? Should I expect to pay a big lump of tax if I go to a tax accountant?

    Thanks for any help!
    Nick

    Reply
      • Nick

        Is it easier to go see an tax accountant or is it easy to lodge it with you online? or do I have to come see you in person?

        Thanks,
        Nick

        Reply
        • yulia spilna

          Hi Nick

          Thank you for your enquiry.
          It is up to you, whether it is easier for you to come over to our office (42 Belgrave St, Manly) or apply online.
          Online application is quite simple and self-explanatory and will take around 5-10 minutes of your time.
          If you worked on ABN we will need you to attach invoices to your application, so that we can calculate your tax correctly.
          If you have also worked on your TFN you will need to attach your PAYG summary as well.
          Please click on “Tax Back” – “Apply Online” on our website and it will take you straight to application form.
          Let us know if you have any issues

          Reply
  95. Hammad

    Hi, I got myself an ABN back In Jul 2015 however I never used it for any purposes. How ATO will know as to what I am saying is true. They might consider it that I am hiding somethings. I have been working on TFN during the period and never got around working on ABN.

    Reply
    • David Goldsmith

      Hi Hammad,
      It should be fine, I’ve had an ABN for 4 years- never done anything with it and so don’t put it in my return each year and there has been no problems.
      If you’re not using it maybe you want to cancel the ABN?

      Regards,
      David

      Reply
  96. hi there,

    I have been working on ABN for almost 1 year and have not paid tax for 2014-15 year actually i am on student visa i started working on ABN from Feb-2015 and till june-2015 i made$19695AUD how much tax i owe and weather i am resident as per taxation????plz ans me as soon as possible

    Thanks…

    Reply
    • Yulia Spilna

      Hi Ali

      Have you been in Australia for the whole financial year (1st of July 2014 to 30st of June 2015)? If so, there is no tax payable on your income.
      If you haven’t been to Australia for the whole financial year, there may be a little of tax to pay, as you wont be entitled to the full-year tax free threshold.
      And you will be a resident for taxation purposes if you are enrolled in the study course duration of which is at least 6 months.
      You can check more information on residency on ATO website here https://www.ato.gov.au/Calculators-and-tools/Are-you-a-resident/

      Let us know if you need any help sorting out your tax

      Reply
  97. Angel

    Hi. My husband is here on a Partner Visa subclass 309 and is starting work on his ABN soon. I am unsure though if he is an Australian Resident for tax purposes or not. He has been here for 3 months now and we plan on staying here. He will be applying for permanancy within a years time. Can you clear that up for me? Unfortunately the ato and immigration website arent too clear on the matter. Thanks

    Reply
    • Yulia Spilna

      Hi Angel

      Residency for migration purposes is different from residency for taxation purposes
      Your husband will be a resident for taxation purposes as he has a genuine intent to remain in Australia permanently.

      Regards,

      Yulia

      Reply
  98. Kayla

    Hi there, I worked under an ABN in Australia under a working holiday visa in tax year 2012/2013 and when I left Australia in 2013 I lodged my tax return. I received a notice of assessment with a bill that I paid. On the notice I was informed that it is possible for the tax office to amend the assessment in case they think the information provided was incorrect. I was wondering how long the review takes and if you always get a definite notice of assessment after the review period (which is the case in my country) as I haven’t received anything, while I lodged the return almost three years ago.

    Thanks!
    Kayla

    Reply
  99. Hi, if I am working on a wage and running a business at the same time, do I claim the tax-free threshold with the business or the wage?

    Reply
    • Yulia Spilna

      Hi there
      You can only claim tax free threshold from 1 job only and only when you are employed by the company and working on your TFN
      Cheers,
      Yulia

      Reply
  100. Sarah Smith

    I am employed and are going to change my hours and invoice my boss. Is he obligated to pay superannuation or do I up my hourly rate to cover super, sick leave and leave?

    Reply
    • Yulia Spilna

      Hi Sarah

      In regards to your enquiry, yes, your employer will have to pay your super (if your status will remain as an employee, not the contractor).
      Regarding the sick leave, most likely not, unless you will have some sort of agreement with your employer.
      I will have to refer to ATO website where they look at 2 possible scenarios for the person working on ABN https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/Contractors/
      and also have a chat with your employer/HR to clarify your paid leave entitlements.

      Hope that helps,
      Yulia

      Reply
  101. Laura

    Hi
    I am living in australia for 1.5 years at the beginning I was with the student visa but a couple of months ago I applied for the partner visa and actually I am in the bridge visa waiting for the answer of the government.my question is , how much is the percent that I have to pay in taxes if I am working with the ABN?thanks

    Reply
    • Yulia Spilna

      Hi Laura

      Your migration status doesn’t affect your tax returns πŸ™‚
      You are a resident for tax purposes and will be required to pay a resident tax rate and entitled to tax free threshold of $18200.
      If you know your exact YTD Gross and Tax Withheld I will be able to provide you with an estimate and advise you more accurately.

      Cheers,
      Yulia

      Reply
  102. larry

    I am an Australian citizen. I am also a sole trader for 8 months.
    i receive the following payments: (1) Parenting payment (single) $25,000/year
    (2) Income for services provided in my business $10,000
    (3) income using my ABN: $10,000
    I have expenses of approx $2000 (including desktop computer currently using although bought ealier)
    Do i need to declare my Taxable income to be $45,000?

    How much tax do i expect to pay the ATO?

    Reply
    • Yulia Spilna

      Hi Larry

      Yes, your taxable income will equal to $45000.
      If the computer purchase was work related and you have a receipt for it, you can also include it in your tax return as a deduction, however you cant write it off but will have to depreciate (as it is assumed that computer will last you a few years), 5 years is assumed to be a useful life of a computer.
      It also has to be purchased in the financial year you are doing your tax return for.
      If you are running business form home you make be able to include a few other deductions into your tax return.
      The tax on $45000 is around $6600 to pay.
      We may be able to minimise your tax liability.
      Give us a call on 02 9976 6937 and we will go through it together πŸ™‚

      Cheers,
      Yulia

      Reply
  103. Louise

    Hi,

    I am working for a company under an ABN, but doing casual work for them, so I won’t have the same wage each fortnight and at this stage I’m not sure how much is earn in a year. How would I work out my taxes? Is there a percentage i can take off each pay check and put away for my taxes?

    Thanks!
    Lou

    Reply
    • Yulia Spilna

      Hi Louise
      Please refer to ATO weekly tax tables to help you work out the tax you need to put aside every week.
      Regards,
      Yulia

      Reply
  104. Kavita M

    Hi. My partner has no income on TFN during financial year. He was trying to get some freelance jobs on ABN and has bought some tools/equipements, bigger car to carry them + mktg and has opened ABN but hardly earned $1000 till now. We are permanent residents in Australia since 1.5 yrs now and are getting family tax benefit from Centrelink. Does my husband have to lodge a tax return and will be get any refunds from ATO for expenses incurred for business?

    Reply
    • Yulia Spilna

      Hi Kavita
      Your partner will still have to lodge his tax return, even though he earned under the tax-free threshold.
      As he hasn’t paid tax on ABN, he is unable to claim it back.
      As you cant claim back more than you have actually paid in tax.
      Family tax benefit payments are tax free as well.
      Hope that helps,
      Yulia

      Reply
  105. Pradeep Maheshwari

    Hi, I am on a student Visa and my wife is on spouse Visa. She has been working for an Australian car rental company for past 3 years. Now we are returning back to our country (India) but my wife’s employer still wants her to continue her job (she is a software developer) remotely while being in India. But there are a couple of things we are not sure about. 1. If she continues working from India, is she going to pay tax to ato as ‘non-resident for tax purposes’? 2. Her employer suggested her to get her own ABN. Is she eligible for an ABN? She is not starting a business rather she is just continuing her services to the company as a valuable employee. If she is eligible, what is the benefit of having an ABN? Will it save taxes for her or is she going to pay even more? Any help on this would be much appreciated.
    Thanks and regards,
    Pradeep

    Reply
    • Yulia Spilna

      Hi Pradeep
      Yes, that’s correct.
      I assume your wife will be working as a sub-contractor and so she can apply for her ABN.
      And yes, she will be taxed as a non-resident (32.5%).
      So, in July she will need to lodge her tax return for 2016 financial year, where she will put all her information from her invoices and if she will make anything over $18200 there will be some tax to pay.
      Make sure she keeps all the invoices.
      Let us know if you need help with lodging your wife’s tax return and we will be happy to assist.
      Regards,
      Yulia

      Reply
  106. Tina Chu

    Hi,
    I’m an international student and currently on student visa so I can only work 40 hours per fortnight. I reach that limit on my TFN already. Just want to ask whether it is legal to work more using my ABN?

    Reply
    • Yulia Spilna

      Hi Tina
      No, it is not.
      40 hours include work you do on TFN and ABN

      Reply
  107. Ross

    Hello David,

    I have a quick question re my TFN and my resident status for tax purposes…
    Is my resident status linked to my TFN? I’m not sure if when I applied for my TFN originally, I applied as a resident or non resident… I would like be be registered as a resident for tax purposes but I don’t know if I am.. Is this something I can find out?

    Any help would be very much appreciated.

    Thank you,

    Ross

    Reply
  108. Karina

    I earn $16850 with ABN. and 11375 with TAX number. I have no idea How much I need pay my tax. Please help me.

    Reply
    • Yulia Spilna

      Hi Karina
      The tax on your income is around $1961.
      Hope that helps
      Cheers,
      Yulia

      Reply
  109. Hi

    Could you please help me with one question? I’m employed and get regular payments, also I’m a sole trader and have an ABN and earn just 200$ this year. I planned to start production of toys, but it still in design stage. I have already some expenses for that startup design, I’ve got Australian Patent for that, but as it is in design stage I hadn’t get any income for that. Can I claim expenses for start-up business from my whole income including wedges from employer? Thanks

    Reply
    • Yulia Spilna

      Hi Lia
      You are unable to claim any expenses until you start making some through your business.
      Please contact ATO directly for more details.
      Thanks,
      Yulia

      Reply

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