Contractor and ABN number?

I am working as a contractor and do have a ABN number. I know if i use the ABN number, i will have to contribute to superann from the pay i get. Is there any benefit if i use my ABN number?

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  • 1 decade ago
    Best Answer

    If you do not provide an ABN, the payer is required to withhold 46.5% PAYG tax from your payment. Under the Superannuation Guarantee Act, you are not legally required to make personal super contributions when you are self employed as a contractor/sole trader. You can choose not to. But you could claim a tax deduction if you do:

    http://www.ato.gov.au/individuals/content.asp?doc=...

    So you're misinformed about that. To the contrary, sometimes the people who contract you may be required to pay your super on your behalf as if you were an employee - new regulations came in about 1 1/2 years ago:

    http://www.ato.gov.au/businesses/content.asp?doc=/...

    Just comply with the law and provide your ABN. Unless you expect to earn $75,000+ a year, you don't have to register for GST (and you don't have to charge GST and do BAS's). The cash economy is illegal and if the ATO bust the people paying you cash, you can be pretty sure they'll eventually track you down along the paper trail. Call the ATO for anonymous advice if you think the people paying you should be paying your super too.

  • Anonymous
    4 years ago

    From all of the questions you've asked on here and the variation in the answers you've received, you are VERY foolish if you don't consult an accountant. You need guaranteed accurate information that is specific to your situation. You also need a one on one discussion of points on which you are unclear. Believe me, it will be money well spent! To answer your question, in the case you've outlined, an ABN is preferable to getting their TFN as it's far simpler, but you really should be getting professional advice. It will save you a great many expensive problems in the future.

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