I am employed full time and paid a salary.
On the weekend, I have been paid for photography services that I have provided. I have received $4000 so far.
How do I need to report this to the ATO? At the end of the financial year add this money to my annual income?
If so, is the tax rate 35%? Can I claim all expenses as tax deductible such as, travel, equipment etc.
These are questions for an accountant but yes, generally speaking you are right. You would be a sole trader and your income is added together and you can deduct eligible business expenses.
You would pay tax at the marginal tax rate for whatever your taxable income is for each year
When you do the tax return for the 2018 financial year, you would need to report the $4,000 as business income and you can show as a deduction any expenses you incurred to earn that income, e.g. printing and stationery, advertising, travel, equipment (depreciation rules apply) etc. Your net income would then be added to your salary and wage and any other income and you will then be taxed on your total income (taxable income).
The extra tax you will have to pay would depend on your other income levels.
Hope this helps.
mate you need to get yourself an ABN. Suresh is on the money as far as your tax obligations, but remember that you probably have a LOT of deductible items to take into account. The first thing you need to take into account is your photography equipment. Most photographers I know are like junkies with lenses, filters, tripods and bits& pieces......cant say no!! Remember that for Small businesses there are special depreciation rules that allow you to write off assets that cost less than $20k........so your whiz-bang $12,000 Zeiss will come in handy come tax time hehehehe.
get some advice from an accountant about keeping records and KEEP YOUR RECEIPTS!!!!
The details above are spot on. First question though, how often are you doing this work? Is it a regular activity, or just something you have done on the cheap for friends/family over the course of the year? There is a possibility you fall under the hobby umbrella, and don't have to do anything.
Speak to your accountant, or get on to one sooner rather than later.