How to set up as a Sole Trader
#1
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How to set up as a Sole Trader
I currently work for a HK company. I have my own company in the UK and invoice them once a month etc. They have offered me the same job in Australia (I've got PR), but I don't know how to set up as a Sole Trader. I know it's harder to start an actual company in Australia, as I have done in the UK, and so would need to be a sole trader. I would be invoicing the same company each month, for my salary and expenses. Would I be taxed on a similar level to PAYG? I assume that as a sole trader I would have to arrange my own medical insurance, rather than pay the Medicare Levy? If I had to buy office equipment and supplies, would this have to come out of my own money? Any help is much appreciated as working out how much money I'd have at the end of the day is the deciding factor.
#2
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Re: How to set up as a Sole Trader
If you are trading under your own name, it is actually quite easy, no business to set up, just get your tax numbers, with GST registration, and away you go.
All your business expenses are tax deductible, and you still pay the Medicare levy at the end of the year in your final tax calculations.
All your business expenses are tax deductible, and you still pay the Medicare levy at the end of the year in your final tax calculations.
#3
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Re: How to set up as a Sole Trader
Thanks for this. I know that my tax returns were pretty easy to fill in when I was PAYG, would they be fairly straightforward as a sole trader - or would I need to involve an accountant? Also, we would want to apply for a mortgage after 12 months or so - is it much harder when one of you is a sole trader, or is it okay as long as you can prove a consistent income?
#4
Re: How to set up as a Sole Trader
Thanks for this. I know that my tax returns were pretty easy to fill in when I was PAYG, would they be fairly straightforward as a sole trader - or would I need to involve an accountant? Also, we would want to apply for a mortgage after 12 months or so - is it much harder when one of you is a sole trader, or is it okay as long as you can prove a consistent income?
#5
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Re: How to set up as a Sole Trader
Thanks for this. I know that my tax returns were pretty easy to fill in when I was PAYG, would they be fairly straightforward as a sole trader - or would I need to involve an accountant? Also, we would want to apply for a mortgage after 12 months or so - is it much harder when one of you is a sole trader, or is it okay as long as you can prove a consistent income?
Different banks have different attitudes to mortgages. I suggest seeing a mortgage broker with that question. They should have the experience to know which lender to go for.
However, if you are working for a previous employer, with effectively just a change of conditions, a bank may well look kindly on that, when compared to a normal self employed person, with no immediate track record.
#6
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Re: How to set up as a Sole Trader
That's great - thanks for the input. With regards to a mortgage, 12 months may be ambitious for us anyway, as we'll be renting out our UK property, and covering the mortgage on that will be a close run thing. We'll have to save for a deposit in Oz, so the longer we wait, the bigger deposit we'll have...as long as house prices don't go through the roof. Thanks again, very helpful.