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

[arno&caroline]

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...

[Mara]

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.

[Cyberdeth]

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.

[Mara]

Cyberdeath

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

[Cyberdeth]

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

[Alibaba]

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.

[Jannie]

Anyone in Sydney is welcome to come and see me. I am with an accounting firm in town, so willing to help where I can. Full details here ... http://www.saaustralia.org/index.php?showtopic=24461

[CandiceM]

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

[Cyberdeth]

Thank you very much guys. Much appreciated.

[arno&caroline]

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

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...