Hi. I've just started working with a courier franchise. I need my own ABN. Ive never worked with a abn no before and was wondering what is the best way to go about it and reduce my tax and what I'm able to claim. Thanking you.?
Hi Dan, its a little difficult to answer your question without knowing more about how you are set up financially with other aspects. But I would think as you are new to this and it sounds like you are subcontracting to a company who owns a franchise not the franchisee yourself. The easiest solution till you get used to running your own business would be to set up a sole trader business - You can get an abn under your own name or you can register a business name that you might want to run under and get your abn against your business name and yourself.
There are a few other items that you may need to understand as if you are subcontracting to one company only - then you may still be viewed as an employee as far as the tax office is concerned.
The best person to discuss any issues that may be relevant would be your tax agent as he/she will know what your current state of affairs are and advise you accordingly how best to proceed. Make sure that they explain things in every day terms so that you understand and can make the best decision on how to proceed.
Remember to anything you want to expense in your business you will need paperwork and documentation to support it, as the tax office can and does audit businesses on a regular basis and the keeping of good records will make life a lot easier in these situations.
What Linda said is correct BUT also you need to determine if you are a contractor or an employee regardless of what the person paying your bills says.
Check out this link from the ATO and determine if you are a quasi-employee or a bonafide contractor. https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=ECDTSGET&anchor=ECDTSGET/questions/ECDT#ECDTSGET/questions/ECDT
You may be considered a PSI. Personal Services Income which means your ability to get some deductions reduces even more like splitting the income with a spouse or claiming rent expense.
Have a look at the Tool and see what it says. Just because an employer claims you are a contractor does not necessarily mean you are. You may be entitled to Super.