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    Hi guys,
    I am new to Australia so I am trying to figure out how full time and freelance jobs works together.
    My situation is this one:
    – Full time job $100K per annum
    – Freelancer job let’s guess $15K per year (first year)

    – when I will apply for the ABN, should I apply for “sole trader / independent contractor” as I am a trainer/BIM designer and I will work alone from home for my freelance job? Can I invoice to my clients as a sole trader?

    – Should I register for GST? I reckon NO because I will earn just $15K per year and not more than $75000, right? Or that 75000$ are the sum of full time job + freelancer job?

    – Are my tax calculate following the individual income tax rates table?
    For example if I got $100k from my full time job + $15k from my freelancer job, will I pay tax for a gross income of $115k? or will I pay taxes separately? please be noted that for my full time job taxes are already paid by the employer.

    – Later on if I decide to add a tech start-up (website/blog) under the same business? would it be possible?

    Best Regards

    • Total posts: 3,158


    If your ABN is sole trader, its your tax file number that is accountable for the taxes – therefor, from what i understand, is that you will pay tax on your combined income (PAYG/Freelance) under your TFN in one swoop… Only way to seperate this is if the freelance is done under a company or other (then there are other associated costs)… seperate business from taxes on your last question.. if your abn is operating under your TFN, this is what is responsible for reporting revenues to ATO etc.. and you can run any business under the ABN (legal of course), so expansion is always possible.. whether it is the right decision and the right structure, this is a question you have not asked so we are not aware if it is suitable this way – only you and your accountant will know this best..

    Good luck

    • Total posts: 4,472

    To add to Harry’s comments, is the 15K (estimate) gross or net. Do your clients want to be a company or are they happy with sole trader. GST will you have heaps of inputs or is it only income. etc, etc, etc.

    You have thrown 2 numbers in here, with no substance, to get a valid answer you need to provide a lot more detail. Details that a ”good” accountant will know to ask.

    • Total posts: 179

    To add, make sure you set up your invoicing nice and professional, even if not needing to track for the GST.

    I use Harvest due to the time tracker, but equally you could use the Quickbooks simple program which allows for the books to later be done by an Accountant, as it records expenses from your bank account/s.
    Ensuring always that we manage to keep private and business expenses separate (or note this in the platform).

    At this level, your costs can quickly take over your profits, so make sure you are not working just to pay for accounting software, home computer, printer, creative software, and LinkedIn subscription to name but a few. I made a freelancer hourly rate calculator if you’d like to try it out.

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