ABN responsibilities.

I recently registered for an ABN, purely so that I could invoice my 'boss' for my services.

I instruct fitness classes at a gym, and needed to invoice the gym owner for my time.

I was just wondering what responsibilities come with my ABN registration?
Is there anything I should be aware of?

I know it's pretty stupid to be asking these questions after registering myself.

Cheers.

 

Probably GST registration, own workers comp for yourself, possible PAYE tax, 3rd party insurance for your clients for starters

Rgds

Kevinb

 

Wow, thanks for the input.

What would be the right approach to getting all that sorted? Should I get a business advisor, or...??

 

Are you sure your 'Boss' isnt just asking you to do this to avoid paying you benefits. Losts of 'Bosses' seem to try to take this approach.

Have a look at the ATO guidelines and see where you fit:

PAYG withholding guide no 2 - How to determine if workers are employees or independent contractors

My guess is you should be an employee.

For your 'Boss' this means.

1. He cant claim the GST component of your invoices as inputs.
2. He'd have to contribute to a super fund for you (from memory of you earn over something like $450 a month).

I'm sure someone a lot more qualified will be able to give you correct guidance but I think you're being diddled as a contractor.

Bruce

 

Thanks for the input.
Judging by the guidelines in the link you provided, I could really go either way.

Cheers guys.

 

Sorry I only saw this thread recently.

PAYG and SGC definitions of 'employee' don't quite align but it is critical for you to work out where you fit.

If you are a 'contractor' then you might lose both ways - no employee benefits and the ATO might decide you fit the 'Personal Services Income' definition and be denied business deductions that a real business would get.

I think you need to talk to an Accountant as this is an area where you could get stung.

Cheers,

Rob

 

Thanks Rob, I appreciate the response.