Tax question?

Question

So I am getting youth allowance because I am a full time student, now I am doing contract work which will only pay $100 max per week.I know its not much money but will I have to pay tax on it?

The money I get is not taxed before i get it so how do I know how much to pay? Will they send me a bill?

Magpie Z, thanks I will have a look at the ato website, I was just being lazy I thought someone could give me an easy answer. Im 21 and only people over the age of 24 or 25 get Aubstudy. And the company I work for said that I do not need a ABN no.

Answer 1

I presume you are over 18. You will be required to be assessed for income tax because the combination of your contract work and youth allowance will be over the tax free threshold.
However because you are doing contract work there may be a few expences which can offset the income that you have earned.
Don't forget you will need to let Centrelink know about employment income.

Answer 2

I am confused as full time student of any tertiary institutiuona are normally on Austudy so are you over 16?. The things you need to be aware of are:
a) your youth allowance is assessible income
b) your earnings are assessable
c) do you have an abn
To work as a contractor you must provide an ABN otherwise tax will be taken from your payment at the highest rate (48.5%). If you are not over 16 then there are a number of limits placed on income of "minors" designed to stop well off people allocating money to their children to reduce the tax payable. If you are on a government benefit you have the option of having tax taken form it but this is not usually necessary if you do not earn other income as the "beneficiary" rebate cancells out tax on the amount of benefit above the tax free threshold. You will end up paying tax on the earnings and i imagine that deductions against the income would be limited so I sugest that you look at getting a small amount of tax withheld form your youth allowance to compensate for the tax payable on the earnings which would be 15 cents in the dollar or $30 (max) per fortnight. I suggest that you check out the ATO website for more info.
www.ato.gov.au

Answer 3

You did not mention if the money you would be earning is being paid to you by the same person each week. The LAW states anything over $600.00 a year is reportable as contract labor, but with only $100.00 a week for 52 weeks, that is only $5200.00 a year. By the time you figure in the personal exemption and the standard deduction you would owe nothing anyway. The person paying must issue you a 1099...like a W2, but with no taxes withheld. I would not worry about paying anything and ask for CASH instead of a check. Can not be traced this way. The person paying you must have your CORRECT social security number for their tax return and if the number is wrong no one could trace it back to you. GET IT? I would not worry about claiming it...too much paperwork. The federal government spends and looses more money in a week than you could make in a lifetime. Take it and have fun. Hope this helps.

Answer 4

We had no National Debt 9 years ago. If my history serves me a republican came into office and changed all that. 100 years ago these things did not exist. 100 years ago it was 1908 and Taft was President. Well remembered for his 4 years. I am trying to think of the term that would be used if the US had maintained ownership of all this infrastructure and owned the sole share of an industry. Darn - what is the opposite of free trade and capitalism. In 1907 there was an event called the Panic of 1907, also known as the 1907 Bankers' Panic. Sound familiar? My opinion is when you read propaganda like this use that spark to read the history and seek facts. Why was this worth posting? In my opinion posting and emails like this help to spread ignorance.

Answer 5

Yes, you have to pay taxes on all income. You may get it all back but, you have to claim it.