Do I have to pay taxes for holding an ABN?

Question

I've been in Sydney for about 7 months now and worked for a company for about 6 weeks (that was a contract), they required me to have an ABN so I got one, that was about about two months ago and I'm not currently employed. I was told that I have to pay taxes for the money I received from the company during that period, is there a deadline for paying the taxes, is it possible to wait until I get another job? Thanks.

Answer 1

You need an ABN if your are conducting a business or enterprise in Australia, which is why, being paid as a contractor your former employer required you to have one. This means that they paid you in the hand a gross pay, on which you are responsible to pay the tax come tax time. (This is in contrast to being paid as an employee, where they pay you in the hand your net pay, which is your gross pay less the tax they are required to withhold and forward to the ATO on your behalf.)

the financial year ends on 30 June so after that you will be required to report these earnings on your tax return, you have until 31 oct to do it yourself or you may get an extension if you are on the offical client list of a tax agent prior to this date. See a good accountant who will help you out.