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  • #982867
    Alwayshope
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    I subcontract through a current client…as a subcontractor…..I know some of the tax deductions that I can claim as working for myself but just double checking that I am keeping about 20% aside for tax- what tax deductions could I claim as I would have earnt under $17000 and withholding 20% tax- can anyone tell me what tax deductions I can claim as part of the tax?

    #1139270
    KellyB
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    What sort of work do you do? Your deductions will be directly related to that.

    With your tax amount, have you earnt any other income this financial year? $17,000 income would be tax free if you don’t have any other income for the year, so you would not be required to pay any tax and you would get back any tax withheld under the withholding agreement you have with the company you work for, so you don’t really need to claim any deductions to reduce your tax.

    #1139271
    Alwayshope
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    hi thanks kindly for your response-no I am working for other people during the year

    #1139272
    Alwayshope
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    i do telemarketing etc

    #1139273
    KellyB
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    Sounds like you may fall under the personal services income (PSI) rules – which is where you are paid for your labour, rather than for supplying materials, etc – so restrictions are placed on your deductions
    Check out this link for details on your deductions
    http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00162439.htm&page=17&H17

    #1139274
    TimFairweather
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    KellyB, post: 158977 wrote:
    Sounds like you may fall under the personal services income (PSI) rules – which is where you are paid for your labour, rather than for supplying materials, etc – so restrictions are placed on your deductions
    Check out this link for details on your deductions
    http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00162439.htm&page=17&H17

    Great post Kelly – the PSI rules are a common tricky one for business owners. T

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