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  • #967697
    lynden
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    hay every how we all been going good i hope. My name is lynden im 24 and i’ve been working for the boss for about 6mths nowas a labourer for a roofing mob and just reasently he as asked to to go on an abn and start invoiceing him you my payment and what not, and tell you the truth its kinda of scare casue i have no idea what i need to do and how to do it and was woundering you experaince guys could give me some advice

    #1028192
    King
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    Lhis raises lots of issues – because he wants you to work on the basis of subcontractor.

    This means you will be responsible for lots including:
    Superannuation
    Insurance (income protection/liability)
    doing your own BAS and other clerical aspects related to tax
    vastly more complicated tax return (claiming costs etc)
    Making allowance for sick leave and holidays

    All this means that your hourly rate should increase, perhaps significantly.

    You need to chant to an accountant about this. it will be money well spent.

    Basically what he is doing is divesting himself of any responsibility for you that an employer normally carries.

    #1028193
    FletcherTax
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    Hi Lynden

    Welcome to the Forums!

    I would suggest a chat with an accountant to get you started in terms of record keeping, issuing invoices, GST implications (if applicable), as well as general compliance.

    Janna

    #1028194
    Past-Member
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    Hi Lynden, welcome – firstly, if you regularly work for this boss and it’s your only work, then you are an employee. If you invoice him with an ABN but he is your only work then you are still effectively an employee and he has to do the right thing with wages, insurances, super etc. Search details at http://www.ato.gov.au

    Secondly, if you wish to register for an ABN (Australian Business Number) http://www.abr.gov.au there are a lot of things legally to get right and you will need an accountant to help you. You are then responsible for your own tax and insurances and need to put money away each month for your own tax. The tax department has requirements for this.

    As a labourer working on a roof you would be better off working for a boss because the company insurances would cover you. If you work for yourself you have to get your own insurance.

    Contact the Australian Tax Office http://www.ato.gov.au and talk to someone there first. And also find an accountant that you can easily communicate with.

    Best wishes.

    #1028195
    lynden
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    thanks kings not makeing me fell anybetter. like i said im totally new at this and have no idea what to do . i guess i’ll have to chat to an accountant

    #1028196
    fiona@vas
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    My understanding of Workers Comp insurance is that an employer can’t abdicate responsibility for insurance just because the worker has an ABN and is providing an invoice. The employer will still be liable for the worker unless the subcontractor has their own insurance.

    You’ll still need to get some advice on this and the other issues mentioned above (and perhaps contacting the relevant union might be a good idea). The government also has some online information on your rights as a subcontractor.

    The site below has information on being a subcontractor:
    http://www.abcc.gov.au/abcc/IndependentContractors/

    good luck!
    Fiona

    #1028197
    lynden
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    thanks for all your adivce guys ill keep in contact and let you see how things work out. now i just have to fine a acountant and can spec plain english

    #1028198
    Paul Cunningham
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    Hi Lynden

    Yes, Karen C is right to point out, the most significant aspect of what youre about to embark on is if you should be classified as a sub-contractor at all (providing work for mutliple customers) or if you only have the one customer (your current-soon-to-be-previous boss). Investigate this arangement thoroughly and if its the way to go, make sure your charge out rates reflect the new costs you will incur, like insurance, as mentioned. Also, you’ll be giving up the super contributions your employer currently makes. You need to consider this in your rates. In my experience, many sole-traders have little or no superannuation becuase of other cost pressures in their business.

    Additionally, I’ve read the federal government’s Henry Tax Review may have something to say about this kind of arrangement and may impact sub-contractors in the future – so keep an ear out.

    #1028199
    lynden
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    well as it stand i will be only working for the boss but he is wanting me to start invoiceing with my abn when i get on, but yeah i will be only working with him

    #1028200
    peppie
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    Likewise, I read/heard recently that the Gov. is likely to clamp down on this sort of arrangement by declaring it to be an employer/employee arrangement if you largely work for one client.

    In other words, they don’t like the idea that an employer can just shift everyone to be a subcontractor simply to make it cheaper and easier for themselves. As has been said, get some good advise.

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