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  • #987750
    jakry001
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    Hi there

    I’m a noob with all this, so apologies if my questions are dumb, or have been asked before. I tried searching for answers, but found it hard to work things out clearly.

    I’ve started doing some subcontract work in the building industry. I work for myself and have no employees. I’d like to know what happens in terms of the ABN, GST and tax in general.

    I have an ABN (not registered for GST). Say I carry out some work and charge a total of $1000, agreeing on a rate of $xx/h + GST. Now I invoice the company. Who pays GST ($100)? Do I calculate GST on my invoice to them, and they pay me the total amount + GST ($1100)? Or do they calculate GST once they receive my invoice, and I have nothing to do with GST?

    This is probably a really dumb question. Once I’m paid, do I also pay regular income tax on this? Also, can that money be paid into any normal account of my choice, or does it need to be a specific account? Say the ABN is in my name, and the bank account is in my wives name?

    Thank you for any help :)

    #1164185
    MissSassy
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    If you are not registered you cannot charge GST, all your work is GST free on the invoice.

    Yes you will be required to pay income tax on your annual income.

    I would be surprised that you are able to subcontract like this. Most businesses should require that you are pty ltd so they don’t have to cover your insurances too.

    Get yourself a good accountant and make sure you are doing everything correctly so you don’t get out of control early on.

    #1164186
    Anonymous
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    Hi there jakry001, and welcome to Flying Solo,

    In addition to the info provided by MissSassy, (thanks MissSassy!) you might find this article handy reading: GST for small business.

    Please feel free to ask more questions though if you need to, and I’m sure someone around here will be able to help you out.

    Thanks for joining the forum,
    Jayne

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