How Much Tax do i have to pay on ABN?
I am a free lance videographer (filming things) i have only made around $4000 on My ABN this Year how much Tax will i have to Pay if Any?
- Bella RoseLv 78 years agoBest Answer
OK! There are different sorts of tax involved here.
The first question is. Is this your only income for the year. I doubt it. The $4,000 will be placed together with the rest of your income to be assessed for income tax purposes. If you have earned less than $6,000 you do not have to pay any income tax at all even if you do lodge an income tax statement. These are the current income tax rates.
As you are running a business e.g. you have an ABN you will put the income from the business with your other income, only if the business is not a company. If you are a sole trader, you will put the $4,000 with the rest of your assessable income for taxation purposes. If the business is a company, you will pay a separate company tax at a rate of 30% on the income from the business. However, you will pay separate income tax on your other income as companies are treated as separate entities to individual wage earners.
If you have an ABN and are not registered for the GST, which you don't have to be until you have an income from your videographer filming activity of $75,000, then you don't have to pay GST. If you have registered for the GST then you have to lodge a Business Activity Statement BAS along with your income tax statement. http://www.ato.gov.au/businesses/pathway.aspx?sid=...
Also there is generally no income tax on hobbies. If this business is little more than a hobby at the moment it is doubtful that you would pay income tax on it. However, if you have registered it as a business you need to do test to see if it is a hobby or serious business. The might be like - How many hours per week would you have averaged out on this business over the last financial year. If it is less than four hours it is probably a hobby. Do you have a client list from this venture that pay you regular income or is the income incidental? In other words have you got the money from isolated engagements or is there a regular set of business events? If you are having regular business engagements, it is a business, you have to pay income tax. I think a lot of this is common sense.
For more information this is the tax help link.
Under the Business section you can also go into Small Business Support for future referrence and see that there is a separate set of Business Taxation considerations for Small Business in Australia for when you really do get going.