Setting up as Sole trader - questions
Hi,
I'm heading for Sydney in August 2007 on a Permanent Residency Visa. I'm looking at setting up as a Sole Trader. As I'm in Software development I have the opportunity to start out by working (remote) for a company in Sweden for the first 3-6 months, where I would invoice them from Australia. I have found a lot of information on ato.gov.au, but have a couple of questions below. Thankful for any hints, links or recommendations. 1. As a Sole Trader, will I need to pay "Super" (9% is it?) of my total income? 2. Are there any insurances one should (or must) take out while working as a sole trader? What's the cost for private health insurance and income protection insurances in Australia as a sole trader? 3. Any specific rules or recommendations I should be aware about when invoicing to a foreign country, from Australia, as a Sole Trader? Thanks in advance, Andy, Sweden |
Re: Setting up as Sole trader - questions
1. As a Sole Trader, will I need to pay "Super" (9% is it?) of my total income?
NO you dont have to. 2. Are there any insurances one should (or must) take out while working as a sole trader? What's the cost for private health insurance and income protection insurances in Australia as a sole trader? Depends on your industry & circumstance. Bear in mind that Australia is second only to the USA in terms of civil litigation so some form of public liability and possible professional indemnity may be useful. 3. Any specific rules or recommendations I should be aware about when invoicing to a foreign country, from Australia, as a Sole Trader? Nope not really. |
Re: Setting up as Sole trader - questions
Originally Posted by SEAndy
(Post 4717332)
Hi,
I'm heading for Sydney in August 2007 on a Permanent Residency Visa. I'm looking at setting up as a Sole Trader. As I'm in Software development I have the opportunity to start out by working (remote) for a company in Sweden for the first 3-6 months, where I would invoice them from Australia. I have found a lot of information on ato.gov.au, but have a couple of questions below. Thankful for any hints, links or recommendations. 1. As a Sole Trader, will I need to pay "Super" (9% is it?) of my total income? 2. Are there any insurances one should (or must) take out while working as a sole trader? What's the cost for private health insurance and income protection insurances in Australia as a sole trader? 3. Any specific rules or recommendations I should be aware about when invoicing to a foreign country, from Australia, as a Sole Trader? Thanks in advance, Andy, Sweden For small business advice and contact info in NSW try, www.smallbiz.nsw.gov.au |
Re: Setting up as Sole trader - questions
When you get here go to the ATO and get your TFN (Tax File Number)
Once you have that you can get your ABN (Australian Business Number) This you can do online. Next register for GST (with the ATO) and through the NSW Business of Fair Trading register your business name. Costs about $100 Once you have all that you are good to go. I suggest you buy a basic copy of MYOB for small business accounting purposes and connect with an accountant who can brief you on any other detail during your startup phase. PS: Most software development and associated companies are concentrated on the North Shore around Crows Nest, Artarmon and Lane Cove. |
Re: Setting up as Sole trader - questions
Originally Posted by Centurion
(Post 4719649)
1. As a Sole Trader, will I need to pay "Super" (9% is it?) of my total income?
NO you dont have to. 2. Are there any insurances one should (or must) take out while working as a sole trader? What's the cost for private health insurance and income protection insurances in Australia as a sole trader? Depends on your industry & circumstance. Bear in mind that Australia is second only to the USA in terms of civil litigation so some form of public liability and possible professional indemnity may be useful. 3. Any specific rules or recommendations I should be aware about when invoicing to a foreign country, from Australia, as a Sole Trader? Nope not really. In regards to insurance you will more than likely have to get Public liabilty and a small basic Workers Comp insurance ,just incase you shoulld happen to employ someone even if its only for a few hours . Im a sole trader and i dont pay any super to my self ,i would rather speculate on the property market . |
Re: Setting up as Sole trader - questions
The thing you will have to pay as a registered business is Workers Comp. The bastards make you pay a minimum of $120/yr even when you have no employees. And the thing that really sucks - workers comp isn't available to you the employer to claim against:mad:
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Re: Setting up as Sole trader - questions
Originally Posted by nzer57
(Post 4721557)
The thing you will have to pay as a registered business is Workers Comp. The bastards make you pay a minimum of $120/yr even when you have no employees. And the thing that really sucks - workers comp isn't available to you the employer to claim against:mad:
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Re: Setting up as Sole trader - questions
Originally Posted by Gibbo
(Post 4721893)
Don't think this is right. 3 of my sons are self employed, one with a registered business name, and none have workers comp. Income protection is around $500-600. Workers comp starts around $4k.
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Re: Setting up as Sole trader - questions
If you do all your work for one client and have no employees doing principal work, I think you may fall into the personal services income trap, which means you get taxed as if you were an employee of a company, not at the corporate tax rate.
Originally Posted by SEAndy
(Post 4717332)
Hi,
I'm heading for Sydney in August 2007 on a Permanent Residency Visa. I'm looking at setting up as a Sole Trader. As I'm in Software development I have the opportunity to start out by working (remote) for a company in Sweden for the first 3-6 months, where I would invoice them from Australia. I have found a lot of information on ato.gov.au, but have a couple of questions below. Thankful for any hints, links or recommendations. 1. As a Sole Trader, will I need to pay "Super" (9% is it?) of my total income? 2. Are there any insurances one should (or must) take out while working as a sole trader? What's the cost for private health insurance and income protection insurances in Australia as a sole trader? 3. Any specific rules or recommendations I should be aware about when invoicing to a foreign country, from Australia, as a Sole Trader? Thanks in advance, Andy, Sweden |
Re: Setting up as Sole trader - questions
Originally Posted by nzer57
(Post 4721902)
They just haven't caught up with them yet. If you're self employed technically you have to register as a business with fair trading even if it's just Joe Bloggs (Sole Trader)
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Re: Setting up as Sole trader - questions
Originally Posted by Exile
(Post 4721912)
If you do all your work for one client and have no employees doing principal work, I think you may fall into the personal services income trap, which means you get taxed as if you were an employee of a company, not at the corporate tax rate.
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Re: Setting up as Sole trader - questions
Originally Posted by Gibbo
(Post 4721922)
You are right on the button there - and it only takes 1 tax return for them to do it too.:)
You would have to show the ATO an employment contract with a termination date to get this past them. My understanding though is that he is simply an international home based employee. He may be able to get them to vary his employment terms to say subcontractor. |
Re: Setting up as Sole trader - questions
Originally Posted by Gibbo
(Post 4721915)
It is taking them a h*llova long time then! Their father never paid worker's comp either!!:)
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Re: Setting up as Sole trader - questions
Originally Posted by nzer57
(Post 4721962)
The unusual ratio is a max of 80% for one client. You can however get exemptions if it's a contract and that's your normal business method.
You would have to show the ATO an employment contract with a termination date to get this past them. My understanding though is that he is simply an international home based employee. He may be able to get them to vary his employment terms to say subcontractor. |
Re: Setting up as Sole trader - questions
Originally Posted by nzer57
(Post 4721902)
They just haven't caught up with them yet. If you're self employed technically you have to register as a business with fair trading even if it's just Joe Bloggs (Sole Trader)
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