iainandsam

My husband has just started working for a builder who is paying 10% of his wages gst to the government for him, he is working as a self employed carpenter. What does this mean? When we fill out our tax return does this mean 10% of the tax would have already been paid or will we still be liable for the full amount? Also what is the deadline for tax returns, can you go to a tax agent and get them to fill the forms out for you. Since we have been here we have just been keeping an invoice book of income and reciepts for petrol, tools etc. Any help much apprecaited, thanks.

MarkMC

Not 100% sure, but I gather GST t be like VAT in the UK. You husband should be charging GST on his invoices, then passing this on to the governmet. This is NOT part of his income tax. This is only an assumption by me - I used to be VAT registered int he UK, but am back in permanent employemnt here.

Someone will be along to clarify soon

ronanbrady

I'd like to put my query under this thread too.

I'm working 7 weeks now, using an ABN (sole trader) and want to know whether I boo-booed by not submitting a tax return last week (June30th), even though I would only be lodging for 6 weeks work at the time, or do I just put it through the 09/10 tax year.

I'm on WHV waiting for 175 Visa and want to show what a nice honest lad I am, trying to keep everything above board?

Thanks for any advice or links that will help.

MarkMC

You have not boo-boo'd, you have until end of September I think to get it in.

As part of the return you can fill in that you have only been an aussie resident for tax purposes for 2 months.

ABCDiamond

Is your husband registered for GST ? It is compulsory if you have a turnover of more than $75,000 py. He would also need to do his GST reports every three months.

I am not sure about the builder deducting that 10% from him. It sounds odd to me, but I have been out of the tax industry for a few years, and things do change...

I am wondering if the scenario is like this though...
They do a job where the customer pays $1,100. The builder must pay 10% to the ATO as GST, leaving them with $1,000 income. If that is the 10% being considered, then yes that is correct. However, if your husband is charging $300, then he charges the main builder $330 inc GST, and then pays $30 to the ATO, ending up keeping the $300.
The builder then claims that $30 back from the ATO... resulting in his cost being only that $300
And yes, that is exactly the same way that the VAT works.



The deadline for annual tax returns for the year ended June 30, 2009 will normally be the end of October 2009.

ABCDiamond

Just to confirm...

Your income for July 2008 to June 2009, must be done on the 2008/09 return and lodged with the ATO sometime between July 1st 2009 and October 31st 2009

Your income for July 2009 to June 2010, must be done on the 2009/10 return and lodged with the ATO sometime between July 1st 2010 and October 31st 2010

charliebris

Not sure what you why they would be deducting money from his pay if he is working for him as a subcontractor then how it would work is,

Your husband would have an ABN and would supply a invoice to the builder which the builder pays in full unless you have not supplied your ABN on your invoice (but that amount deducted would be about 46.5%)

When your husband discussed pay was the hourly rate including super which is 9% which if your husband is only working for this builder he will have to pay