Over the past couple of years the share sector has emerged into a leading force in the Australian economy. This has been great for employment in the country, as it has allowed for more Australians to be employed and/or operate as sole traders.
Uber, Airtasker, Deliveroo, Airbnb and Gocatch are some of the businesses driving the success of the share economy in Australia. When you work for these share partners, you are essentially a sole trader and must operate under an ABN.
Many people who work as contractors for these companies don’t usually understand the process around taxation of this money. The basic explanation is that these companies don’t pay tax on your behalf and hence you must put aside a portion of your earnings for income tax, so that you have enough cash to pay your tax at the end of the year.
What do we recommend you do?
– Save around 30% of your earnings from each Share Partner for Income Tax
– Keep good records of your expenses to reduce your assessable income
– Know what you can claim
– Ask Nixer what other factors could affect your tax, such as your other income if you only work part time for a share partner.