Home – New Forums Starting your journey Stay as employee or use ABN.

  • This topic is empty.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • #966028
    AndrewT
    Member
    • Total posts: 2
    Up
    0
    ::

    Hi everyone,

    I am new to this forum, so be nice! I am after some information and thought someone on here might be able to give me some sort of guidance.

    Currently, I work fulltime as a Apprentice Plumber. Obviously the wages aren’t too crash hot at the moment so I work most weekends driving machinery. This weekend work will bring in around 20k on average per year. I am currently working as an employee for the company, though I do hold a ABN from a previous business that never got going!

    My question is, would it be beneficial for me to use my ABN for my weekend work rather than being an employee of the business? I’m trying to see what would be best financially. What are the benefits? What are the short falls?

    Thankyou in advance to anyone giving advice!

    Regards,
    Andrew.

    #1015536
    LeelaCosgrove
    Member
    • Total posts: 634
    Up
    0
    ::

    Okay, #1 – I am not a financial planner or taxation person and you should totally consult an accountant before you make a decision. From my point of view:

    Shortfalls:

    * You need to pay your own tax
    * If you’re going to earn over (I think it’s $75k? Check with the tax office) you need to register for GST – which means doing BAS … blech. Paperwork.
    * You get no super (although I don’t see that as being a big deal – most people’s super went through the floor at the start of the year … and I was like HA! Told you!).
    * You get no leave or leave loading.
    * Working on site you may need to hold your own insurances? Double check that one with someone who knows what they are talking about … :)

    Upsides:
    * You get to claim certain business expenses …

    I dunno … for such a small amount I would probably continue with employment … unless you’re planning to go out on your own later? In which case it would be good practice to get into the habit of working under an ABN – learn what needs doing so that when you need to do it for bigger amounts you’ve got the process handled.

    #1015537
    Warren Cottis
    Participant
    • Total posts: 807
    Up
    0
    ::

    Hello Andrew

    I’m with Leela…there is no upside for you based on what you said. if there are other factors let us know.

    The other consideration as an employee is… if you are injured operating the machinery you will be covered by workers compensation insurance

    #1015538
    AndrewT
    Member
    • Total posts: 2
    Up
    0
    ::

    Thankyou both for your information. It’s really what I needed to hear!

    Think I will stay as an employee for now!

    Cheers,
    Andrew.

Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.