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BrodieHerden
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joeljp, post: 200442 wrote:
Hi Brodie, when you register a business name and use it to trade, you’re effectively trading as a sole trader. Any income derived from the your operation becomes part of your personal taxable income. You’re wise in already thinking about putting money aside for tax. There must be so many out there who never consider this, as well as GST. Then the BAS quarter or the end of the year tax time, they are left wondering where did all the money go and how are they going to pay the tax bill. Bravo!

All the best with your venture!
jj

Yes, I have a friend who works in the same field as I, and he puts a certain percentage of everything he earns with his own business into an account he doesn’t touch (what discipline!) and then if he busts the $18,200 dollar threshold, he has the money to pay.

As I only work between 10 – 12hrs a week, on an award wage. I barely make $15,000 a year – but i’m studying full time and I’ve done some cash work for friends and family to help support myself, and I really enjoy what I do, so why not try the freelance route and gain a nice client base and hopefully in the future have a small, successful business that keeps me out of trouble?

I really can’t see myself breaking the threshold, but will my account at tax time class those earnings away from my day job as something else and I get stung?

As I said earlier, i’m really new to this and i’m jumping in quite deep, with study, work and my own commitments, but I find I learn best under pressure, and sometimes learn the hard way, but it’s usually the most effective way.

Thanks for your time and wisdom, I really appreciate all the help guys!