Home – New Forums Starting your journey ABN Question – Contractor or not?

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    Hi everybody.
    I am registering an ABN my businesses (I am a sole trader), and I am at the point in the registration that requires you to declare whether or not you are a contractor, and if you give a misleading or false response, you are very likely to be receiving a fined.
    The problem is, I fit under all the categories in the quote from the government website below, but I also am starting a separate website which I sell products.
    These will both appear separate businesses to the consumer.
    One, which I am a freelance app & software developer which takes on clients, as well as releasing my own apps and software. The other business an ecommerce website selling physical and virtual goods.
    They will be registered with different trading names, and that will basically be all that separates them legally. My preference is to have them both under the same ABN.

    Generally, you are an independent contractor if you:
    -are paid for results achieved
    -provide all or most of the necessary materials and equipment to complete the work
    -are free to delegate work to others
    -have freedom in the way you work
    -provide services to other businesses
    -are free to accept or refuse work
    -are in a position to make a profit or loss.

    But the ABN registry form only allows you to select whether you are, or are not. Not both. My question is, am I able to register as a contractor, and trade without being one SOMETIMES?

    • Total posts: 13

    Hi Claggs. It doesn’t hurt to tick the “contractor” box. There is no extra reporting requirements as of yet for your industry. That box is basically a “flag” for the ato, who are mainly chasing up contractors in the building industry currently. If you are a genuine contractor you have nothing to worry about.

    • Total posts: 660

    Welcome to the forum, Claggs.

    The ATO paperwork can be hugely complicated! Hopefully the advice sought here will help.

    Love your work!

    Sam on behalf of the Flying Solo team

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