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Hi There,
I am taking on a "hobby" job as a mystery shopper, an have been asked to fill out a "Statement by a Supplier" form as i dont have an ABN, can someone please advise which box i need to tick in the reasons for not supplying an ABN? I currently also work full time. Thanks in advance.
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Hi Dayna
Straight answer to your question is you have to tick one of the 9 options that describe your situation. The hobby option is the fifth I believe "Made in the course or furtherance of an activity done as a private recreational pursuit or hobby"
There could be a couple of issues here that you need to consider:
1. Hobby vs income producing activity. Even if you are doing something as a hobby but making money, you might be considered to be doing it for income producing purposes and as such the payment would be taxable
2. Contractor vs Employee - The fact that you have been asked for an ABN suggests that you would be treated as a contractor by the payer but you might actually be an employee
Hope I have not made it as clear as mud.
Regards
Suresh Rajani
Thank You Suresh!
This is what is says in the info pack:
As an independent contractor, you are required to make your own arrangements in relation to requirements as set down by the Australian Taxation Office. As a Mystery Shopper you are required to supply PR with an Australian Business Number (ABN).
As you are an independent contractor and not an employee, an annual Statement of Earnings or Group Certificate will not be provided at the end of the financial year. It is your responsibility to keep records of all work you carry out on behalf of ****. This includes all fees and reimbursements made to you.
You are responsible for all income and taxes due to the Australian government from any payment received from ****.
***** recommends that you consult your tax professional or financial adviser for information regarding your individual tax requirements as we are unable to advise you of your taxation reporting requirements.
Hi Dayna
It sounds more and more like an income making activity and not a hobby. You can apply for an ABN at https://abr.gov.au/For-Business,-Super-funds---Charities/Applying-for-an-ABN/
Most of the times you would get it at the end of submitting the application, if not then you can call the ATO with the reference number on application and they will work through the application and provide you over the phone.
Regards
Suresh Rajani