Australian ABN or Tax File

rickoshea2010

Hi everyone,

Ive started a job here in Sydney at $46 per hour.

My employer is willing to pay on ABN or PAYG tax file.

Just questioning which method would bring home the most?

s.c

rickoshea2010 wrote: »

Hi everyone,

Ive started a job here in Sydney at $46 per hour.

My employer is willing to pay on ABN or PAYG tax file.

Just questioning which method would bring home the most?

ABN will definately bring home the most but you will be liable to pay your own tax out of this. I think you would also be supposed to sort out your own insurance etc. Probably wont get paid overtime, just a flat rate no matter how many hours you work, no sick pay or holiday pay.

Tax file, the employer will deduct the tax from your wages each week, you should be getting paid overtime if you work it. If you are not hired on a casual basis then you should be get holiday pay and sick pay. And you also will be paid super at 9% of your base weekly wage.

If it was me I'd definately be going for tax file. Mightn't get as much cash into your hand each week but better off in the long run (holiday, super etc.). And if you are doing overtime you will make up most of the difference as you will be getting time and a half and double time etc.

rickoshea2010

s.c wrote: »

ABN will definately bring home the most but you will be liable to pay your own tax out of this. I think you would also be supposed to sort out your own insurance etc. Probably wont get paid overtime, just a flat rate no matter how many hours you work, no sick pay or holiday pay.

Tax file, the employer will deduct the tax from your wages each week, you should be getting paid overtime if you work it. If you are not hired on a casual basis then you should be get holiday pay and sick pay. And you also will be paid super at 9% of your base weekly wage.

If it was me I'd definately be going for tax file. Mightn't get as much cash into your hand each week but better off in the long run (holiday, super etc.). And if you are doing overtime you will make up most of the difference as you will be getting time and a half and double time etc.

Thanks SC.
The thing is there both contract flat rates. $46 tax file includes super and holiday pay and no overtime. Same with ABN.

Im more inclined to the ABN i think.

What happens if i dont pay the ABN tax at the year end?

pjd435

Nothing will happen if you dont do a tax return so work on your abn if you intend to come home after the and never go back, but if you want to stay or go back in a couple of years use your tfn. Keep your tax afairs in order or else they will come back to haunt you.

The Sweeper

ABN you're liable to pay everything yourself - tax, insurance, so on. At the end of the year you can do a tax return that massively reduces the tax you would have to pay if you're organised and keep your receipts.

TFN your employer sorts tax and insurance out. At the end of the year you can lodge a tax return that will net you a considerable windfall if you've been organised and kept your receipts, so it can be a good way to save.

Honestly, please don't come over here, work for a year and go back to Ireland without paying your tax. I'd like it if the Irish didn't fuck up my home country the way you managed to fuck up the country of my birth, and I also don't want to have to deal with being branded similarly to how the Polish were branded in Ireland before the bust.

Mellor

sounds like the boss is willing pay $46 all up regardless of the option you choose. You don't get super on ABN, so if the options are;

$46 TFN inc super - 40 hr week = 1688 gross - 419 tax (+ 152 super) = 1269 Takehome
and
$46 ABN inc GST - 40 hr week = 1840 Takehome

The $152 goes into a super fund (pension) that you claim when you leave or retire.
The $419 goes towards tax, claim the excess back in july, once you calculate your exemptions. Say you pat $19k over the year, you might be able to claim back 9k and they keep 10k in tax. If you go ABN, at this point you'd pay 10k tax.

So, the money you make each way is the same.
ABN you get it all now, pay tax later
TFN you get some now, pay tax, get some tax back later, and super back later still

Rathcoole

I was working in OZ back in 2004, paid tax halk the year through the ordinary system up in Brisbane.
Moved down to Sydney 1/2 way throught the year and got a job that was ABN, worked for 5 months but then left OZ without sorted out any tax details.

Does anyone know if I go back for a 2 week holiday - will anything be said to me about tax bill etc??

thanks & btw
(hadn't planned not to pay tax bill - just had to return to Ireland which I thought at the time was only for 2 weeks but didn't get to go back to OZ due to circumstances and then my visa was up.)