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ABN responsibilities.

Discussion in 'Business & Startup Investing' started by Compleks, 22nd May, 2007.

  1. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    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.
     
  2. kevinb

    kevinb Well-Known Member

    Joined:
    6th Oct, 2005
    Posts:
    51
    Location:
    MENAI
    Probably GST registration, own workers comp for yourself, possible PAYE tax, 3rd party insurance for your clients for starters

    Rgds

    Kevinb
     
  3. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
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    Location:
    Melbourne
    Wow, thanks for the input.

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

    thinkbig Member

    Joined:
    10th Sep, 2006
    Posts:
    16
    Location:
    Perth, WA
    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
     
  5. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
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    Location:
    Melbourne
    Thanks for the input.
    Judging by the guidelines in the link you provided, I could really go either way.

    Cheers guys.
     
  6. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    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
     
  7. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    Thanks Rob, I appreciate the response.