Questions To Those Who Have Abns

[peas_and_corn]

Hey,

I've gotten an offer to undertake some contract work for a friend of mine through uni, however I am required to have an ABN, since I am hired as a contractor. I know nothing about ABNs, and the site confuses me. So, I'd like the friendly people here on AHB to help me out-

1- I'm eligible, right?? All I need to be is an Australian citizen/resident?
2- Is there a separate form for businesses and contractors, or is it all the same?
3- How does tax work? Do I lodge paperwork at the end of the financial year and they bill me? I've heard that they initially bill you twice, once for the previous year and again for the next year... accurate??
4- What paperwork/bookkeeping do I need to make sure is up to date?

I tried calling the ATO but I couldn't find a telephone line prompt that was actually fitting what I needed to know for some reason. Ugh.

Cheers,
Dave

 

[raven19]

Do you have an accountant friend, or use an accountant?
I used to have an ABN many years ago, its a simple process to setup iirc. Cant recall the forms to use though.
Yes you are eligable.
If you are going to earn under $75k (this figure changes from year to year also I think) a year, you dont even have to worry about GST on your invoices also.
Tax will depend on if you set up a business (and pay business tax) or go by your name only then pay personal tax in a similar fashion to what you currently do (I presume).

Happy to be corrected on the above though... just my fairly recent experiences with dealing with Ruddy, Johnny, and co.

 

[.DJ.]

find a good accountant...

 

[thanme]

1- Yep. Think you can apply for them online now?
2- Pretty sure it's all the same. As a contractor, you'll be working through your business, if that makes sense?
3- Visit an account come tax time. When I was doing small amounts of contracting, I actually just visted H&R Block and they sorted me out pretty good. For the most part, it works like income tax. You report your earnings, then report your losses. An accountant will be the best bet for telling you what is claimable (it's different depending on the industry you work in).
4- Keep a record of all income and all business related spendings.

 

[peas_and_corn]

1- Yep. Think you can apply for them online now?
2- Pretty sure it's all the same. As a contractor, you'll be working through your business, if that makes sense?
3- Visit an account come tax time. When I was doing small amounts of contracting, I actually just visted H&R Block and they sorted me out pretty good. For the most part, it works like income tax. You report your earnings, then report your losses. An accountant will be the best bet for telling you what is claimable (it's different depending on the industry you work in).
4- Keep a record of all income and all business related spendings.

Awesome, cheers. Your advice has caused me to dig out the receipt for some books I got just in case I can claim it!!

 

[MarkBastard]

1 - Go to an accountant

Unless this is just a one off thing, in which case I believe you can claim it as a hobby and don't require an ABN.