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Amy S.
Amy S.
Gymea Bay, NSW
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I would like to do some work through an online work marketplace like freelancer.com or Fiverr. Do I need to get an ABN to do this kind of work? I already have a full-time job, this would be more of a side-hustle. Thanks,

Amy

6 years ago

Responses

Short answer is yes. If you transact business you need an ABN.

If you don't have an ABN then the person paying you is required to withhold a tax. Assuming they are an Australian business.

And you will have to include the income and expenses on your personal income tax return.

AJ

Withholding tax for contractors without an ABN is 45%, so it really can make a big difference to your take home income. You also need to consider that as a contractor you are probably not going to be receiving super contributions, and potentially wont be covered for workers compensation either.

https://abr.gov.au/For-Business,-Super-funds---Charities/ABN-explained/

this is where you need to go if you are going to apply yourself. its not very difficult, or you may wish to talk to your accountant about this and get them to do this for you.

good luck
BC

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