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Does one have to register as a "Business" when working on contract basis??


arno&caroline
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I have a question regarding do contract work in Australia (Melbourne).

If I am on my partner's 457 visa and want to apply for a contract work position, do I have to register as a "business" to do the contract work and/or are there any other things that one need to keep in mind when applying for a contract position; i.e. tax, superannuation payments, etc. (currently working permanently, so have; tax file number, super, etc. ).

P.S. Just checking out in case the permanent work becomes a victim of the GFC... :whome:;)

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I think the biggest stumbling block you would come across if not registered as a 'business' is the fact that you do not have an ABN number and therefore the 'big' companies may be reluctant to deal with you, as by law, if I am correct, they would have to withhold a portion of your charges and pay it over to the tax office as withholding tax.

You may be well advised, to spend the dollars and get the advice of a tax person, the outside accountant for our business is based in Greensborough, I could give you his details, if you are interested. Half an hour spent with a person in the know, would definitely be money well spent.

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Mara, could you give me the details as well please. I'm also looking at contracting and have been reading up on the ABN thing, but still not 100% sure.

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Cyberdeath

You would actually have to pay him a visit, are you planning to settle in Melbourne?

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Unfortunately no, I'm looking at Sydney or Brisbane. Sorry not Melbourne.

Edited by Cyberdeth
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Yes, you should. My case was that I received a contract through a recruitment agency. They employed me as I wasn't registered as a business. Then I paid tax like normal and also got super. They in turn charged my fees (and extra I'm sure) back to the company that I actually did the work for. I didn't get paid leave/sick leave, but my hourly fee was about double what I now get as a permanent employee to compensate for the fact that I didn't have those benefits.

A lawyer should hep you with it, but I understood it is not extremely expensive to register.

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You can register for an ABN as an individual. It works exactly like a sole traders did in SA. And you do your tax return at the end of the year, here is the info from the ATO website http://www.ato.gov.au/businesses/content.a...p;page=3&H3 here is some more info from the ATO website titled Contracting Essentials http://www.ato.gov.au/businesses/pathway.a...269#001_003_018

Hope this helps

candice

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Thanks everybody. I think it may be wise to get the registration done. :blush:

Mara, can you please PM me the contact details, as Greensborough is just down the road for me. By the way how is things in Sunbury...

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