Home – New Forums Starting your journey 80/20 rule with only 3 months work this side of the financial year

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  • #983283
    hybinary
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    Hey everyone,

    I’d really appreciate it if someone could help me with an answer to this question.

    I’ve recently returned to Australia after 8 years away and picked up where I left off as a sole trader. I started work in the last week of March 2013 and have only been working for one client and will probably do so until the end of this financial year.

    I understand the principles of the 80/20 rule, however, my question is: would this apply to me in this situation given that I’ve only been operating for just over 3 months of this financial year?

    #1141574
    Greg_M
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    As always check with an accountant, but in my experience there are other factors apart from the 80/20 rule that come into play … especially whether you have history of self employment, and have worked for others, or are set up to do so.

    I’ve regularly worked for clients for 12 mths or more, without an issue, but I also have a long history of doing so for multiple clients, as well as having traded in the “open” market as a sole trader or p/l co.

    Not much better than an educated guess, I’m sorry, but I’d say you have no issue for this financial year.

    Greg

    #1141575
    The Copy Chick
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    If in doubt, call the ATO.

    #1141576
    Healthy Personal Finances
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    There are quite a few factors to consider.
    Here is a link I have found.

    http://www.icb.org.au/newsletters/ICB%20Newsletter/January%202012%20Newsletter/Important%20news%20for%20you%20Jan%202012/Bookkeepers%20and%20the%20ATO%20view%20of%20your%20income

    The examples relate to bookkeeping individuals in business, but could be many different types of business.

    Hope this helps.
    Cheers
    Stacey

    #1141577
    hybinary
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    Thank you everyone for your reply. I’ve called the ATO and they said I will be fine this side of the financial year.

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