Home – New Forums Find the help you need ABN/Sole Trader as a consultant with a company overseas

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  • #999149
    pierre guillon
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    • Total posts: 4
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    Hi,

    My name is Pierre, I’ve started my activity a few months ago in Sydney as a sole trader with an ABN.
    I’m working as a consultant helping a global company to set up his activity in ANZ (they don’t have an office here but in Singapore at the moment).
    So I’m working for them & they pay me as a contractor

    However, I’m completely lost about what I need to do. I’ve already opened a mygov account but I don’t know if I need to invoice this company, when I need to pay my taxes, even if it’s 100% ok to work for an only one company as a sole trader.

    Thanks for your help,
    Pierre

    #1218045
    Dave Gillen – Former FS Concierge
    Keymaster
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    Welcome to the forums Pierre!

    Yes you can just have one client as a sole trader, but there are guidelines to help you assess whether you should be employed as a contractor or employee.

    https://www.ato.gov.au/Business/Employee-or-contractor/Difference-between-employees-and-contractors/
    https://www.ato.gov.au/calculators-and-tools/employee-or-contractor/

    The tax year goes from July 1 to June 30. Book an appointment with an accountant, and they’ll be able to give you some guidance with all of your questions.

    Good luck!
    Dave

    #1218046
    steve201
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    Couple of questions, Pierre,

    1- what country are you paid in?
    2- where is the income you received paid too in terms of a bank account?
    3- do you have a superannuation account you make contributions to in Australia?
    4- do you have more than one source of income?

    Happy to talk, but I need more information .

    Thank you

    #1218047
    pierre guillon
    Member
    • Total posts: 4
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    Hey Steve,

    The company is based in Singapore & I receive payments on my personal bank account in Australia.
    I didn’t do anything regarding the superannuation so far.
    & I have only one source income from this company.

    Thanks,
    Pierre.

    #1218048
    steve201
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    • Total posts: 280
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    Hey Pierre

    It sounds from your answers you are more the likely to be an Australian based employee of this Singaporean entity. Please double check with the links above provided by Dave, in an earlier post here.

    You may need got register for taxes normally paid through the payg withholding system.

    Furthermore you might have to provide superannuation for yourself under Australia’s system.

    The basic issue here is the inward payments are being credited to your Australian bank account and as such is an Australian income.

    If you received income to a non Australian bank account you may not be an Australian employee if you received the payments within a trust or company structure. Moreover this would need to be balanced against what your current living arrangements are concerning residence.

    If you need help on this sing out , please.

    Steve

    #1218049
    pierre guillon
    Member
    • Total posts: 4
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    Thanks Steve & Dave for your help.

    Does it mean that I can be considered as an employee even if I’m a contractor for them & I have an ABN?

    Regarding the GST, knowing that I’m gonna earn more than 70k this year, do I have to pay 10%?

    It’s still not 100% clear for me,
    Thanks in advance,
    Pierre.

    #1218050
    steve201
    Participant
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    Hi Pierre

    You can still be an employee if you don’t meet the contractor tests laid out by Ato website, refer above.

    Please note the Current law requires you to be gst registered when gross income hits $75,000 in any financial year.

    I suggest if you’re concerned about the planning aspect of this fact , have a chat with a local accountant.

    Steve

    #1218051
    pierre guillon
    Member
    • Total posts: 4
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    thanks Steve, according to the test indeed I should le considered as an employee.
    Do you think I should speak with a lawyer and/or an accountant ?

    #1218052
    steve201
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    I’d speak to an accountant and do some tax planning

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