Do I need an ABN, PAYG, GST, ..., if working as a contractor?

Hi everyone,

I'm a French guy looking for a work in Australia and at my last interview I was asked if it is possible that I work as a contractor. I have to answer the guy quite quickly if I want the job so please help me.

My question is : what do I need to work as a contractor? Do I need an ABN?

I've read stuff about PAYG and GST (if you earn more than $75,000 a year) but it's all a bit confusing to me...

Does anybody work as a contractor and know what is the exact procedure?

Thank you very much!

3 Answers

  • 1 decade ago
    Favorite Answer

    As follows:

    - you will need an ABN definitely if working as a contractor;

    - if your annual earnings are likely to be under $75k, there is no requirement to register for GST, although you may do this voluntarily. If you choose not to register for GST you cannot charge GST (to the organisation you are contracting to) nor are you able to claim the GST you pay on expenes as an offset to that collected;

    - if your earnings are to be over $75k per annum then registration for GST is compulsory.

    Firstly, however, you will need to ensure that you have a work visa to enable you to work within this country. Failure to have such a visa could lead to prosecution to you (if caught working here illegally) and possible prosecution to the organisation you are contracting to.

  • 1 decade ago

    Just call the Australian Tax Office on 13 28 66 (not from a mobile phone, it will take some time) and ask them. You will hear many telephone menus but eventually you will get a person on the phone. If that person cannot help you, call back and try speaking with another person. Tell them you are from overseas and have been offered work as a contractor. They will be very helpful. If you have any problems with language ask for a translator.

  • 1 decade ago

    Yes you will need an ABN and will need to charge and pay GST. PAYG will only apply if you have your own company that contracts with the other company, and your company employs you as an employee. PAYG would apply to salary paid to you by your company.

    It is best to talk to youir account and/ort lawyer when setting up these arrangements are there are laws and tax consequences.

    Source(s): Corporate lawyer
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